The Muamalat Newsletter Vol. 2 2023

FEM eNewsletter | Dec 2023 28 or engage in fraudulent activities, thus reducing the prevalence of counterfeit products and ensuring the authenticity of food items. Additionally, the integration of smart contracts within blockchain networks automates various supply chain processes, such as quality assessments, payments, and compliance checks, streamlining operations and reducingadministrativeoverhead (Alqarni, et.al, 2023). The potential efficiencies gained through smart contracts contribute to cost savings throughout the supply chain, which can be particularly impactful in ensuring that affordable and accessible food reaches those in need. In essence, blockchain technology represents a paradigm shift in the way we approach food security, offering a robust framework for enhancing traceability, transparency, and trust within the global food supply chain while simultaneously addressing the myriad challenges that jeopardize the safety and availability of food resources. The Role of Governance Models The role of governance models in blockchain networks is fundamental to their functioning and the achievement of their goals. Governance models encompass the decision-making processes, rules, and structures that guide how participants within a blockchain ecosystem interact and collaborate (Laatikainen et. al.,2021). These models determine blockchain is a distributed ledger technology that records transactions across a network of computers in a secure and transparent manner. In the context of food security, this means that every step of the food supply chain, from production and processing to distribution and consumption, can be documented and verified on an immutable blockchain ledger. This end-to-end traceability and transparency are essential for mitigating food safety risks and fraud, as it enables rapid identification of contamination sources and fraudulent activities. For instance, in the event of a foodborne illness outbreak, blockchain technology allows authorities and stakeholders to swiftly trace the origin of the tainted products, reducing the scope and impact of the outbreak. Moreover, consumers gain access to a wealth of information about the food they consume, such as its source, production methods, and safety certifications, empowering them to make informed choices and fostering trust in the food supply. Security is a cornerstone of blockchain technology, with cryptographic techniques ensuring data integrity and protection against tampering. In the context of food security, this translates to safeguarding critical information related to food production, handling, and distribution. The immutable nature of blockchain records makes it exceedingly difficult for bad actors to manipulate data how changes to the network’s rules and protocols are proposed, evaluated, and implemented, as well as how disputes and conflicts are resolved. In the context of blockchain technology applied to food security, governancemodels play a critical role in ensuring that the network effectively addresses the challenges plaguing the global food supply chain. Effective governance models are designed to strike a delicate balance between centralization and decentralization. Centralized governance models involve a single entity or consortium of entities that oversee network operations (Trump et. al., 2018). This centralized control can facilitate efficient decision- making and the enforcement of specific standards, which can be crucial in rapidly addressing food safety concerns or supply chain disruptions. However, it introduces a potential single point of failure, as the entire network’s integrity relies on the governing entity’s trustworthiness and actions. In contrast, decentralized governance models distribute control among network participants, relying on consensus mechanisms and smart contracts to make decisions and enforce rules. (Surve & Khandelwal, 2023) While decentralized models mitigate the risk of a single point of failure and foster trust through cryptographic methods, Effective governance models are designed to strike a delicate balance between centralization and decentralization. “ “