Question

The case of Twiga Foods that you worked on this week was about a microfinance firm. Institutions providing microfinance most often provide microloans that range from $100 to $1000. If Twiga Foods wants to use the same Blockchain technology for bigger loans (for example $1M loan), what challenges they may face?\

Answer 1

TWIGA FOODS BLOCKCHAIN TECHNOLOGY :

Twiga foods is a business to business food distribution company that builds markets for agricultural products and retailers through Transparency, efficiency and technology. Its mobile platform bring together food producers, house and vehicle to supply and deliver produce directly from farmers to urban retailers.

IBM working to deploy a block chain enabled supply lending platform to help scale to reach. After analysing purchase record from mobile device, machine learning algorithms to prediction to giving lenders the confidence to microloans to small business.

Blockchains are immutable helping to reduce fraid , no one single party can append the blockchain without consensus from network.

Main challenges of Twiga food Blockchain :

1) Scalability :

One of the key challenges in blockchain implementation is its inability to scale. In sometime blockchain network are slow to impact on supply chain processes. Blockchain need to speed up in order to become viable for mass adoption.

2) Energy consumption :

Blockchain need a high degree of computational powe and hence consume a massive amount of electricity. In a Blockchain, miner pick up a block of transaction and try to generate the right hash output for the block.

3) Lack of standardisation :

Many platform present in the blockchain space, there is currently no standard that allows them to interact with each other. There are many Blockchain project active, its own coding language to difficult for the platform to interact with each other without a translator.

4) Privacy :

Twiga food blockchain raise some privacy concerns that need to be addressed, while blockchain are open electronic ledger of all transactions are visible to the server. So this feature may be beneficial where Transparency is desirable to the stringet privacy requirements.

5) Cost of blockchain :

Any blockchain network needs computer with a high degree of computational power, so blockchain technology doesn't come cheap . Large scale implementation of blockchain technology will involve its integration with legacy systems which is expensive.