IFAD’s TRACE Initiative Wins World Future Award for Best Blockchain-Based Traceability Solution in 2024

TRACE, launched to enhance fund traceability and impact in rural communities, utilizes cutting-edge blockchain technologies such as Ethereum and Hyperledger Fabric.

The International Fund for Agricultural Development (IFAD), a UN agency dedicated to investing in rural development, has been honored with the World Future Award for the best blockchain-based traceability solution of 2024. This accolade recognizes IFAD’s innovative TRACE initiative, which is revolutionizing transparency, efficiency, and sustainability in global agricultural supply chains through advanced fund traceability.

TRACE, launched to enhance fund traceability and impact in rural communities, utilizes cutting-edge blockchain technologies such as Ethereum and Hyperledger Fabric. The initiative tracks the movement of funds and goods from donors directly to farmers, ensuring secure and transparent financial operations. By providing precise data, TRACE supports smallholder farmers and small-scale producers effectively.

“TRACE represents more than just a technological advancement; it is a significant step forward in accountability, ensuring that every dollar reaches its intended recipient and is linked to measurable results,” said Advit Nath, Director and Controller at IFAD, who leads the TRACE Blockchain project. “Receiving this award highlights our dedication to creating solutions that improve transparency and trust in development finance.”

TRACE employs smart contracts to facilitate near real-time payments and adherence to anti-money laundering and anti-fraud regulations. The platform has been successfully implemented in seven countries, with plans to expand to up to 90 nations. Its integration of virtual reality to demonstrate its impact enhances its appeal to both public and private sector investors, aligning with the Sustainable Development Goals (SDGs).

The TRACE initiative is supported by global partners including EY, Impersive, Onafriq, and Circle. It combines financial inclusion with top-notch data protection, adhering to international best practices. TRACE has already tracked over $300 million in development funds and supported more than 500,000 farmers.