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Blockchain Based Crop Insurance: A Decentralized Insurance System for Modernization of Indian Farmers

Author

Listed:
  • Nishant Jha

    (Department of CSE, Lovely Professional University, Phagwara 144402, India)

  • Deepak Prashar

    (Department of CSE, Lovely Professional University, Phagwara 144402, India)

  • Osamah Ibrahim Khalaf

    (Al-Nahrain Nanorenewable Energy Research Center Baghdad, Al-Nahrain University, Baghdad 10001, Iraq)

  • Youseef Alotaibi

    (Department of Computer Science, College of Computers and Information Systems, Umm Al-Qura University, Makkah 21955, Saudi Arabia)

  • Abdulmajeed Alsufyani

    (Department of Computer Science, College of Computers and Information Technology, Taif University, Taif 21944, Saudi Arabia)

  • Saleh Alghamdi

    (Department of Information Technology, College of Computers and Information Technology, Taif University, Taif 21974, Saudi Arabia)

Abstract

Conventional crop insurance systems are complex and often not economically feasible. Farmers are often reluctant to be covered for their crops due to lack of trust in insurance firms and the fear of delayed or non-payment of claims. In this paper, a blockchain based crop insurance solution is suggested. The solution suggested in this paper is an affordable, efficient, low cost crop insurance solution which will ensure many farmers are insured and benefiting from timely crop insurance. Currently the cost of administering insurance is an essential barrier to accessing this facility. With the proper use of blockchain based on ethereum this expense can be reduced dramatically. We have conducted various tests on platforms such as Google Cloud and found that the least throughput is 165 transactions. Upon analysis we have found that the time taken by the block formation is directly proportional to the timing of processing. The end-to-end average latency of the system was achieved as 31.2 s, which was quite effective for the infrastructure what we are using. Upon conducting acceptance testing, we found that the system suggested in the paper is effective and we are planning to release the application on open source platforms for future improvements.

Suggested Citation

  • Nishant Jha & Deepak Prashar & Osamah Ibrahim Khalaf & Youseef Alotaibi & Abdulmajeed Alsufyani & Saleh Alghamdi, 2021. "Blockchain Based Crop Insurance: A Decentralized Insurance System for Modernization of Indian Farmers," Sustainability, MDPI, vol. 13(16), pages 1-17, August.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:16:p:8921-:d:611314
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    References listed on IDEAS

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    1. Valentina Gatteschi & Fabrizio Lamberti & Claudio Demartini & Chiara Pranteda & Víctor Santamaría, 2018. "Blockchain and Smart Contracts for Insurance: Is the Technology Mature Enough?," Future Internet, MDPI, vol. 10(2), pages 1-16, February.
    2. Cristian KEVORCHIAN & Camelia GAVRILESCU & Gheorghe HURDUZEU, 2020. "A Peer-To-Peer (P2p) Agricultural Insurance Approach Based On Smart Contracts In Blockchain Ethereum," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 17(1), pages 29-45.
    3. John Salmon & Gordon Myers, 2019. "Blockchain and Associated Legal Issues for Emerging Markets," World Bank Publications - Reports 31202, The World Bank Group.
    4. Guang Li & Fangfang Liu & Ashutosh Sharma & Osamah Ibrahim Khalaf & Youseef Alotaibi & Abdulmajeed Alsufyani & Saleh Alghamdi, 2021. "Research on the Natural Language Recognition Method Based on Cluster Analysis Using Neural Network," Mathematical Problems in Engineering, Hindawi, vol. 2021, pages 1-13, May.
    5. Robin Chark & Vincent Mak & A. V. Muthukrishnan, 2020. "The premium as informational cue in insurance decision making," Theory and Decision, Springer, vol. 88(3), pages 369-404, April.
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    Cited by:

    1. Muhammad Saad & Muhammad Khalid Khan & Maaz Bin Ahmad, 2022. "Blockchain-Enabled Vehicular Ad Hoc Networks: A Systematic Literature Review," Sustainability, MDPI, vol. 14(7), pages 1-31, March.
    2. Hussien Mohamad Alakrash & Norizan Abdul Razak, 2021. "Technology-Based Language Learning: Investigation of Digital Technology and Digital Literacy," Sustainability, MDPI, vol. 13(21), pages 1-17, November.
    3. Guangjie Lv & Caixia Song & Pengmin Xu & Zhiguo Qi & Heyu Song & Yi Liu, 2023. "Blockchain-Based Traceability for Agricultural Products: A Systematic Literature Review," Agriculture, MDPI, vol. 13(9), pages 1-32, September.
    4. Satheeshkumar Palanisamy & Balakumaran Thangaraju & Osamah Ibrahim Khalaf & Youseef Alotaibi & Saleh Alghamdi & Fawaz Alassery, 2021. "A Novel Approach of Design and Analysis of a Hexagonal Fractal Antenna Array (HFAA) for Next-Generation Wireless Communication," Energies, MDPI, vol. 14(19), pages 1-18, September.
    5. Balika J. Chelliah & T. P. Latchoumi & A. Senthilselvi, 2024. "Analysis of demand forecasting of agriculture using machine learning algorithm," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(1), pages 1731-1747, January.
    6. Reimund Schwarze & Oleksandr Sushchenko, 2022. "Climate Insurance for Agriculture in Europe: On the Merits of Smart Contracts and Distributed Ledger Technologies," JRFM, MDPI, vol. 15(5), pages 1-16, May.
    7. Kuruva Lakshmanna & Neelakandan Subramani & Youseef Alotaibi & Saleh Alghamdi & Osamah Ibrahim Khalafand & Ashok Kumar Nanda, 2022. "Improved Metaheuristic-Driven Energy-Aware Cluster-Based Routing Scheme for IoT-Assisted Wireless Sensor Networks," Sustainability, MDPI, vol. 14(13), pages 1-19, June.

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