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The International Fund for Agricultural Development (IFAD) has announced that its innovative TRACE blockchain has been awarded the prestigious World Future Award for best blockchain-based traceability solution in 2024.
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IFAD is a United Nations specialised agency and international financial institution committed to investing in rural communities.
Guarantees traceability of funds to intended destination
The industry recognition underscores the initiative’s groundbreaking approach to solving real-life challenges. TRACE blockchain improves transparency, efficiency, and sustainability in global agricultural supply chains. It does this through guaranteed traceability of funds to reach its intended destination.
TRACE was launched to revolutionize fund traceability and development impact in rural communities. It leverages cutting-edge blockchain technologies, including Ethereum and Hyperledger Fabric to track the movement of funds and goods from donors all the way to individual farmers. TRACE uses these platforms to ensure robust and secure financial operations. By so doing, it significantly empowers smallholder farmers and small-scale producers by providing accurate data.
“TRACE is not just a technological innovation, it’s a leap forward in accountability, supporting every dollar to reach its intended recipient and linked to measurable impact,” said Advit Nath, Director and Controller at IFAD, leading on TRACE Blockchain.
He added: “This award is a testament to our commitment to pioneering solutions that enhance transparency and trust in development finance.”
Innovative use of smart contracts
The innovative use of smart contracts, a hallmark of the TRACE platform, enables near real-time payments. It also ensures compliance with anti-money laundering and anti-fraud regulations. The innovation has already been used successfully in projects across seven countries. There are already plans to scale to up to 90 countries across the globe.
The platform’s integration of virtual reality to showcase its impact further positions TRACE technology to lead in attracting both public and private sector funding. The ultimate goal is to use TRACE to accelerate progress towards the Sustainable Development Goals (SDGs).
Supported and enabled by global partners like EY, Impersive, Onafriq and Circle, TRACE combines financial inclusion with advanced data protection. This aligns well to international best practice standards. The holistic approach has successfully tracked over US$300 million in development funds and supported over 500,000 farmers.
