DLT (Distributed Ledger Technology), popularly known as blockchain, is gaining more and more relevance in areas very different from finance. Although many associate blockchain with cryptocurrencies, its potential in the rural environment is enormous: from ensuring the traceability of agricultural and livestock products, to facilitating access to global markets, improving the transparency of public aid and opening up new financing opportunities.
But, what exactly is DLT?
It is a decentralised registration system that allows multiple actors to share secure information without a central entity controlling it. Data is distributed across a network of nodes, where each transaction is collectively validated and cannot be changed without consensus. This makes it possible to build trust between parties who do not know each other, automate processes (through what are known as smart contracts) and reduce intermediaries.
An analogy as an example: think of DLT (blockchain) as a notebook shared by many people, where everyone writes down what happens (a sale, a shipment, a payment) and everyone else sees the same thing instantly. No one can erase or change what is written without everyone knowing, so everyone trusts what is written down, even if they don't know each other. In addition, you can program automatic rules (‘if A happens, do B’) that are self-enforcing, without having to rely on intermediaries.
CHALLENGES FOR RURAL BUSINESSES
SMEs, midcaps and entrepreneurs in Castilla y León face very specific challenges:
- Low digitalisation and unequal access to technological tools.
- Need to build trust with clients and partners, especially in international markets.
- Lack of efficiency in administrative and commercial processes, which increases costs and limits competitiveness.
- Difficulty in accessing innovative financing, leaving them on the margins of emerging investment models.
BENEFITS AND USE CASES
The application of DLT includes a wide range of practical uses:
- Food traceability: farmers and ranchers can immutably record every step of the production process, from seed to final sale. This ensures quality, sustainability and origin, which is increasingly demanded by consumers.
- Automated certifications: through smart contracts, quality, ecological or other certifications can be issued automatically when certain conditions are met, reducing costs and time.
- Efficient management of grants and subsidies: municipalities and public entities can use blockchain to increase transparency and reduce fraud in the allocation of funds.
- Decentralised finance (DeFi): small businesses can access new models of credit and crowdfunding, even without going through traditional banks.
- Circular economy and sustainability: cooperatives can record and share data on sustainable processes, allowing them to access international labels and collaborate on circular economy initiatives.
HOW DIGIS3 CAN HELP YOU
DIGIS3, as the European Digital Innovation Centre, has the mission to bring these technologies closer to SMEs, helping them to understand their potential, assess their level of digital maturity and implement customised solutions. DIGIS3 offers services to help you in your digital transformation:
- Free digital maturity diagnosis: to assess the specific needs of your company.
- Practical workshops and training: on blockchain and other emerging technologies.
- Proofs of concept and pilots: to experiment with solutions before implementing them on a large scale.
- Technical and strategic advice: to design the most appropriate digital transformation plan.
- Access to European funding and grants: helping to prepare proposals, connect with European programmes and find technology partners.
Our goal is that rural SMEs do not just adopt trendy technologies, but that they do so with a clear purpose: to improve their competitiveness, become more sustainable and generate impact in their communities.