Opinion by: Fraser Edwards, co-founder and CEO, Cheqd
The pervasive issue of food fraud, particularly in the honey industry, demands urgent and effective solutions. Shockingly, up to 96% of imported honey in the UK has been found to be fake, highlighting a significant breakdown in supply chain integrity. While initiatives like the EU’s Digital Product Passports aim to enhance traceability, they fall short in addressing the core problem: the manipulation of data. This article argues that blockchain-based self-sovereign identity (SSI) offers a more robust and reliable solution to combat food fraud and ensure consumer trust.
The Honey Fraud Crisis: A Bitter Reality
Honey fraud is rampant, with economically motivated adulteration (EMA) involving the substitution of genuine honey with cheaper alternatives like high fructose corn syrup, starch, or gelatine. These adulterants closely mimic honey’s chemical profile, making detection difficult. The practice not only deceives consumers but also poses health risks due to potentially harmful additives. According to the Honey Authenticity Network, a significant portion of honey products are fraudulent, costing the EU billions of euros annually.
What is Economically Motivated Adulteration (EMA)?
Economically motivated adulteration (EMA) involves intentionally substituting valuable ingredients for less expensive products such as sweeteners or low-quality oil. This practice leads to severe economic and health complications — and, in some cases, disease — due to the poisonous additives from substitute products.
The implications of honey fraud extend beyond financial losses. It undermines the livelihoods of legitimate beekeepers, who struggle to compete with the artificially low prices of counterfeit products. Furthermore, it erodes consumer confidence in food products and regulatory systems.
The Limitations of EU Digital Product Passports
The EU’s Digital Product Passport aims to improve traceability by providing detailed information on a product’s lifecycle, origins, and environmental impact. However, this approach is vulnerable to manipulation. Fraudsters can forge certificates and obscure origins by routing products through intermediary countries, exploiting weaknesses in regulatory oversight.
The fundamental flaw of the EU’s approach lies in its reliance on human oversight, which is susceptible to corruption and manipulation. A more effective solution requires a system that is tamper-proof and independent of human intervention.
Self-Sovereign Identity (SSI): A Blockchain-Based Solution
Self-sovereign identity (SSI) offers a decentralized and secure approach to verifying product authenticity. Based on blockchain technology, SSI establishes a “trust triangle” between issuers, holders, and verifiers:
- Issuers: Manufacturers or certification bodies create and sign verifiable credentials that attest to a product’s authenticity.
- Holders: Product owners store and present these credentials when required.
- Verifiers: Retailers, customs officials, or consumers can check the credentials’ validity without relying on a central authority.
Verifiable credentials are cryptographically protected, making them tamper-proof. Any attempt to sell fake products will be immediately revealed by missing or invalid credentials.
SSI provides the infrastructure to reliably track the identity of products across multiple bodies, standards, and regions. By enabling end-to-end traceability, SSI ensures that validators confirm the data’s accuracy, effectively combating fraud and obfuscation attempts.
Here’s how SSI can revolutionize the honey supply chain:
- Origin Verification: Each jar of honey can be tagged with a unique digital identity linked to its origin, production date, and beekeeper.
- Authenticity Certification: Independent labs can issue verifiable credentials confirming the honey’s purity and composition.
- Transparency for Consumers: Consumers can scan a QR code on the jar to access the honey’s complete provenance and certification details.
By empowering consumers to independently verify products, SSI reduces reliance on third-party databases and minimizes the risk of misinformation. This approach also helps reduce corruption and inefficiencies associated with paper-based checks.
The Broader Implications of Blockchain for Food Safety
The application of blockchain technology extends beyond honey fraud. It can be used to enhance traceability and transparency in various food supply chains, including:
- Meat and Poultry: Tracking the origin and processing of meat products to prevent foodborne illnesses and ensure ethical sourcing.
- Seafood: Combating illegal fishing and ensuring sustainable harvesting practices.
- Produce: Monitoring the journey of fruits and vegetables from farm to table, reducing spoilage and waste.
By providing a secure and transparent platform for data sharing, blockchain can foster greater collaboration and trust among stakeholders in the food industry.
Conclusion
While the EU’s Digital Product Passports represent a step towards greater supply chain transparency, they are insufficient to address the sophisticated tactics of food fraudsters. Blockchain-based self-sovereign identity (SSI) offers a more robust and reliable solution, empowering consumers and businesses to verify the authenticity of products and combat fraud effectively. By embracing SSI, we can create a more transparent, secure, and trustworthy food system for all.
Opinion by: Fraser Edwards, co-founder and CEO, Cheqd.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
