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Application of Blockchain Technology in Agricultural Water Rights Trade Management

Author

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  • Yan Liu

    (State Key Laboratory of Hydraulics and Mountain River Engineering, Sichuan University, Chengdu 610065, China)

  • Chao Shang

    (Institute of New Structural Economics, Peking University, Beijing 100871, China
    National School of Development, Peking University, Beijing 100871, China)

Abstract

Water is a basic and essential natural resource, and its rational allocation plays a key role in environmental and economic sustainable development. Agriculture consumes a large share of water resources, but the allocation of water rights often deviates from water use in reality. Therefore, an appropriate management method for agricultural water rights trading is needed. In this paper, blockchain technology is applied to address the agricultural water rights trading issue. Firstly, an alliance chain and the practical Byzantine fault tolerance (PBFT) consensus mechanism are adopted to support a smart contract and application. Then, a trading platform based on blockchain for agricultural water rights trading is proposed. Finally, the role and function of a decentralized autonomous organization (DAO) in a self-financing irrigation drainage district (SIDD) are clarified. This study provides a secure and stable platform which can reduce the trading confirmation time and support numerous users. The trading process of agricultural water rights is updated to minimize the cost of water rights’ transactions and improve the system’s efficiency.

Suggested Citation

  • Yan Liu & Chao Shang, 2022. "Application of Blockchain Technology in Agricultural Water Rights Trade Management," Sustainability, MDPI, vol. 14(12), pages 1-10, June.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:12:p:7017-:d:833937
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    References listed on IDEAS

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    1. Xu, Xianghui & Chen, Yingshan & Zhou, Yan & Liu, Wuyuan & Zhang, Xinrui & Li, Mo, 2023. "Sustainable management of agricultural water rights trading under uncertainty: An optimization-evaluation framework," Agricultural Water Management, Elsevier, vol. 280(C).

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