A BLOCKCHAIN-BASED SMART CONTRACT SYSTEM FOR AUTOMATED CROP INSURANCE AND A METHOD THEREOF

Abstract

ABSTRACT A BLOCKCHAIN-BASED SMART CONTRACT SYSTEM FOR AUTOMATED CROP INSURANCE AND A METHOD THEREOF The present disclosure discloses a blockchain-based smart contract system for automated crop insurance and a method thereof; The system(100) comprises at least one soil moisture sensor(102) to monitor soil moisture levels; at least one IoT-based imaging device(104) to capture at least one crop image; at least one IoT-based microprocessor(106) to track weather patterns; an IoT data collection device(108) to collect soil moisture levels, crop image and weather patterns; a data processing and analysis module(110a) to process and compare received real-time data against predefined agricultural conditions and thresholds parameters, and adjust an insurance coverage; a smart contract module(114) to assess a risk assessment of policy insurance to tailor the policy according to current conditions and generate a new or adjusted insurance policy, automatically process said insurance claim based on received said adjusted insurance coverage to initiate payout disbursement to an insured party upon successful claim verification and securely record said insurance claim and payout disbursement in an immutable ledger, and generate and deploy a smart contract.

Specification

Description:FIELD OF INVENTION
The present disclosure generally relates to the field of crop insurance systems. More particularly, the present disclosure relates to a blockchain-based smart contract system for automated crop insurance and a method thereof.
BACKGROUND
The background information herein below relates to the present disclosure but is not necessarily prior art.
Existing automated crop insurance systems face several technical limitations that affect their performance and adoption. One of the main challenges is the accuracy and reliability of the data collected by IoT sensors and devices. Sensors used to measure soil moisture, crop health, and weather conditions can be susceptible to calibration errors, environmental interference, and device malfunctions, which can lead to inaccurate assessments and misinformed insurance decisions. Additionally, the effectiveness of these systems heavily depends on reliable network connectivity, which is often lacking in rural and remote agricultural areas. Poor connectivity can result in delayed data transmission, intermittent losses, or complete communication failures, compromising the real-time functionality that is central to these systems.
High initial setup costs and ongoing maintenance requirements for IoT devices also present significant barriers, particularly for small-scale farmers who may find the investment prohibitive. Regular maintenance, calibration, and replacements are necessary to ensure the accuracy of the sensors, adding to the overall operational costs. Data security and privacy are additional concerns, as unauthorized access to IoT devices or data breaches could expose sensitive information, even though blockchain technology offers secure and immutable record-keeping. Scalability poses another challenge, as the integration of large numbers of diverse sensors can overwhelm data processing capabilities, leading to inefficiencies and delays in policy adjustments. Environmental variability, such as extreme weather events, can disrupt sensor performance and impair the system's operation, further complicating insurance decision-making processes. Lastly, limited awareness and understanding of these technologies among farmers contribute to resistance and hesitation in adopting automated insurance systems, underscoring the need for targeted education and support to build trust and acceptance.
Further, limited understanding and acceptance by farmers, driven by concerns about technology reliability and trust, pose a barrier to widespread adoption, underscoring the need for improved education and support to build confidence in these automated systems.
Overall, while automated crop insurance systems present a promising solution to traditional challenges by offering more efficient and timely insurance management, addressing these technical limitations is crucial to enhancing their reliability, scalability, and accessibility for farmers worldwide.
Therefore, there is felt a need for a blockchain-based smart contract system for automated crop insurance and a method thereof that alleviates the aforementioned drawbacks.
OBJECTS
Some of the objects of the present disclosure, which at least one embodiment herein satisfies, are as follows:
It is an object of the present disclosure to ameliorate one or more problems of the prior art or to at least provide a useful alternative.
An object of the present disclosure is to provide a blockchain-based smart contract system for automated crop insurance and a method thereof.
Another object of the present disclosure is to provide a system that automatically monitors real-time agricultural conditions.
Still another object of the present disclosure is to provide a system with a dynamic risk assessment mechanism that evaluates real-time data against predefined conditions, allowing for tailored insurance policies based on actual field conditions.
Yet another object of the present disclosure is to provide a system that automatically adjusts insurance coverage levels based on the real-time analysis of the collected data, offering a responsive insurance solution that adapts to changing conditions without manual intervention.
Still another object of the present disclosure is to provide a system that generates and deploys smart contracts on the blockchain network to manage insurance claims and disbursements, ensuring transparency and immutability of transactions.
Yet another object of the present disclosure is to provide a system with a blockchain server that securely records all data related to insurance claims, policy adjustments, and payout disbursements on an immutable ledger, ensuring data integrity and preventing fraud.
Still another object of the present disclosure is to provide a system that automates the claim verification process and initiates payout disbursement to the insured party once the claim is validated, reducing the time and manual effort involved in traditional claim processing.
Other objects and advantages of the present disclosure will be more apparent from the following description, which is not intended to limit the scope of the present disclosure.
SUMMARY
The present disclosure envisages a blockchain-based smart contract system for automated crop insurance and a method thereof. The system comprises at least one Internet of Things (IoT) based soil moisture sensor, at least one IoT-based imaging device, at least one IoT-based microprocessor, an IoT data collection device, a blockchain server, and a smart contract module.
The Internet of Things (IoT) based soil moisture sensor is installed in an irrigation field and configured to monitor soil moisture levels in real-time.
The IoT-based imaging device is installed in said irrigation field and configured to capture at least one crop image.
The IoT-based microprocessor is implemented in a weather station and configured to track weather patterns in said irrigation field.
The IoT data collection device is configured to collect said soil moisture levels from said IoT-based soil moisture sensor, said crop image from said IoT-based imaging device and said weather patterns from said IoT-based microprocessor over an IoT based network.
The blockchain server is configured to communicate with said IoT-based data collection device over a wireless communication medium to receive said soil moisture levels, said crop image, and said weather patterns.
The blockchain server includes a data processing and analysis module.
The data processing and analysis module is configured to cooperate with said IoT-based data collection device to continuously receive and process real-time data related to said soil moisture levels, said crop image, and said weather patterns, further configured to compare said received real-time data against predefined agricultural conditions and thresholds parameters and further configured to adjust an insurance coverage based on said comparison, including increasing or decreasing coverage levels in response to received real-time data.
The smart contract module is configured to cooperate with said data processing and analysis module to assess a risk assessment of policy insurance in real-time to tailor the policy according to current conditions and generate a new or adjusted insurance policy automatically.
The smart contract module is configured, receives said adjusted insurance coverage and automatically processes said insurance claim to initiate payout disbursement to an insured party upon successful claim verification and further securely records said insurance claim and payout disbursement in an immutable ledger as a tamper-proof data, and generate and deploy a smart contract on the blockchain network.
In an embodiment, the IoT data collection device comprises the following steps:
• a soil moisture monitoring module is configured to capture real-time monitoring of soil moisture levels by means of at least one sensor to assess irrigation needs and drought conditions;
• a crop health monitoring module is configured to capture at least one image of crops by means of at least one capturing device to track crop health indicators, including growth patterns, disease detection, and pest infestation;
• a weather monitoring module is configured to capture and track weather patterns by means of at least one weather station, including temperature, rainfall, and humidity levels; and
• a predictive analytics module is configured to analyze historical and real-time data from the soil moisture monitoring module, crop health monitoring module, and weather monitoring module to predict future agricultural conditions, enabling proactive adjustments to insurance coverage and policy terms.
In an embodiment, the data processing and analysis module further comprises an anomaly detection module configured to identify irregular patterns or anomalies in the real-time data received from the IoT data collection device, triggering alerts for potential risks such as unexpected weather events or sudden changes in crop health.
In an embodiment, the smart contract module is configured to manage insurance policies, claims, and payouts, wherein each insurance policy is encoded into a smart contract and stored on a decentralized blockchain network, ensuring the immutability and transparency of all insurance-related transactions.
In an embodiment, the smart contract module further comprises a customizable policy module configured to allow policyholders to customize specific terms and conditions of the insurance policy, such as coverage limits, premium adjustments, and deductible amounts, which are then automatically updated in the smart contract.
In an embodiment, the smart contract module further comprises a multi-layer encryption module configured to provide additional layers of encryption for sensitive data, ensuring that all data transmitted between the IoT devices, data processing module, and smart contracts remain secure against unauthorized access or tampering.
The present disclosure also envisages a method for automated crop insurance. The method comprises the following steps:
• monitoring, by at least one Internet of Things (IoT) based soil moisture sensor installed in an irrigation field, soil moisture levels in real-time;
• capturing, by at least one IoT-based imaging device installed in said irrigation field, at least one crop image;
• tracking, by at least one IoT-based microprocessor implemented in a weather station, weather patterns in said irrigation field;
• collecting, by an IoT data collection device, said soil moisture levels from said IoT-based soil moisture sensor, said crop image from said IoT-based imaging device, and said weather patterns from said IoT-based microprocessor over an IoT based network;
• communicating, by a blockchain server, with said IoT-based data collection device (108) over a wireless communication medium to receive said soil moisture levels, said crop image, and said weather patterns;
• continuously receiving and processing, by a data processing and analysis module, real-time data related to said soil moisture levels, said crop image, and said weather patterns, and comparing said received real-time data against predefined agricultural conditions and thresholds parameters and
• adjusting, by said data processing and analysis module, an insurance coverage based on said comparison, including increasing or decreasing coverage levels in response to received real-time data;
• assessing, by a smart contract module, a risk assessment of policy insurance in real-time to tailor the policy according to current conditions and generating a new or adjusted insurance policy automatically, and
• receiving, by said smart contract module, said adjusted insurance coverage and automatically processing said insurance claim to initiate payout disbursement to an insured party upon successful claim verification and securely record said insurance claim and payout disbursement in an immutable ledger as a tamper-proof data, and generating and deploying a smart contract on the blockchain network.
BRIEF DESCRIPTION OF THE ACCOMPANYING DRAWING
A blockchain-based smart contract system for automated crop insurance and a method thereof of the present disclosure will now be described with the help of the accompanying drawing, in which:
Figure 1 illustrates a block diagram of a blockchain-based smart contract system for automated crop insurance;
Figures 2A-2C illustrate a flow chart depicting the steps involved in a method for a blockchain-based smart contract system for automated crop insurance in accordance with an embodiment of the present disclosure; and
Figures 3A-3B illustrate a flowchart for an operational workflow of automated crop insurance via smart contracts in accordance with an embodiment of the present disclosure.
LIST OF REFERENCE NUMERALS
100 - System
102 - Soil Moisture Sensor
104 - IoT-Based Imaging Device
106 - IoT-Based Microprocessor
108 - IoT Data Collection Device
108a - Soil Moisture Monitoring Module
108b - Crop Health Monitoring Module
108c - Weather Monitoring Module
108d - Predictive Analytics Module
110 - Blockchain Server
110a - Data Processing and Analysis Module
110a-1 - Anomaly Detection Module
112 - Wireless Communication Medium
114 - Smart Contract Module
114a - Customizable Policy Module
114b - Multi-Layer Encryption Module
DETAILED DESCRIPTION
Embodiments, of the present disclosure, will now be described with reference to the accompanying drawing.
Embodiments are provided so as to thoroughly and fully convey the scope of the present disclosure to the person skilled in the art. Numerous details, are set forth, relating to specific components, and methods, to provide a complete understanding of embodiments of the present disclosure. It will be apparent to the person skilled in the art that the details provided in the embodiments should not be construed to limit the scope of the present disclosure. In some embodiments, well-known processes, well-known apparatus structures, and well-known techniques are not described in detail.
The terminology used, in the present disclosure, is only for the purpose of explaining a particular embodiment and such terminology shall not be considered to limit the scope of the present disclosure. As used in the present disclosure, the forms "a," "an," and "the" may be intended to include the plural forms as well, unless the context clearly suggests otherwise. The terms "including," and "having," are open ended transitional phrases and therefore specify the presence of stated features, integers, steps, operations, elements, and/or components, but do not forbid the presence or addition of one or more other features, integers, steps, operations, elements, components, and/or groups thereof. The particular order of steps disclosed in the method and process of the present disclosure is not to be construed as necessarily requiring their performance as described or illustrated. It is also to be understood that additional or alternative steps may be employed.
When an element is referred to as being "engaged to," "connected to," or "coupled to" another element, it may be directly engaged, connected, or coupled to the other element. As used herein, the term "and/or" includes any and all combinations of one or more of the associated listed elements.
Key challenges of the existing crop insurance system include sensor inaccuracies, unreliable network connectivity, high setup and maintenance costs, data privacy concerns, and difficulties with scalability and environmental variability. Additionally, limited understanding and trust in the technology among farmers hinder widespread adoption. Overcoming these challenges is essential to improving the reliability, accessibility, and efficiency of automated crop insurance systems, making them a more viable solution for the agricultural sector.
To address the issues of the existing systems and methods, the present disclosure envisages a blockchain-based smart contract system (hereinafter referred to as "system 100") for automated crop insurance and a method for automated crop insurance (hereinafter referred to as "method 200"). The system 100 will now be described with reference to Figure 1 and the method 200 will be described with reference to Figures 2A-2B.
Referring to Figure 1, the system 100 comprises at least one Internet of Things (IoT) based soil moisture sensor, at least one IoT-based imaging device, at least one IoT-based microprocessor, an IoT data collection device, a blockchain server, and a smart contract module.
The Internet of Things (IoT) based soil moisture sensor 102 is installed in an irrigation field and configured to monitor soil moisture levels in real-time.
The IoT-based imaging device 104 is installed in said irrigation field and configured to capture at least one crop image.
The IoT-based microprocessor 106 is implemented in a weather station and configured to track weather patterns in said irrigation field.
In an embodiment, the system 100 includes an advanced weather prediction module (not included in the figure) integrated with external meteorological data sources in addition to the IoT-based microprocessor 106. The weather prediction module enhances the system's ability to forecast weather events such as droughts, floods, or severe storms. The blockchain server 110 uses these forecasts to dynamically adjust insurance policies in advance, providing farmers with proactive coverage changes that reflect imminent weather risks, thereby ensuring more precise insurance management.
The IoT data collection device 108 is configured to collect said soil moisture levels from said IoT-based soil moisture sensor 102, said crop image from said IoT-based imaging device 104, and said weather patterns from said IoT-based microprocessor 106 over an IoT-based network.
In an embodiment, the IoT data collection device 108 comprises the following steps:
• a soil moisture monitoring module 108a is configured to capture real-time monitoring of soil moisture levels by means of at least one sensor to assess irrigation needs and drought conditions;
• a crop health monitoring module 108b is configured to capture at least one image of crops by means of at least one capturing device to track crop health indicators, including growth patterns, disease detection, and pest infestation;
• a weather monitoring module 108c is configured to capture and track weather patterns by means of at least one weather station, including temperature, rainfall, and humidity levels; and
• a predictive analytics module 108d is configured to analyze historical and real-time data from the soil moisture monitoring module 108a, crop health monitoring module 108b, and weather monitoring module 108c to predict future agricultural conditions, enabling proactive adjustments to insurance coverage and policy terms.
The blockchain server 110 is configured to communicate with said IoT-based data collection device 108 over a wireless communication medium 112 to receive said soil moisture levels, said crop image, and said weather patterns.
The blockchain server 110 includes a data processing and analysis module.
The data processing and analysis module 110a is configured to cooperate with said IoT-based data collection device 108 to continuously receive and process real-time data related to said soil moisture levels, said crop image, and said weather patterns, further configured to compare said received real-time data against predefined agricultural conditions and thresholds parameters and further configured to adjust an insurance coverage based on said comparison, including increasing or decreasing coverage levels in response to received real-time data.
In an embodiment, the data processing and analysis module 110a further comprises an anomaly detection module 110a-1 configured to identify irregular patterns or anomalies in the real-time data received from the IoT data collection device 108, triggering alerts for potential risks such as unexpected weather events or sudden changes in crop health.
In an embodiment, the system incorporates an AI-powered image analysis module within the blockchain server. This module utilizes machine learning algorithms to analyze the crop images captured by the IoT-based imaging device 104 for detecting diseases, pest infestations, or nutrient deficiencies. The AI analysis can provide an early warning to adjust insurance coverage in response to emerging crop health issues. For instance, if a disease outbreak is detected, the system could increase coverage to accommodate the heightened risk, or, conversely, reduce premiums if crops are in excellent condition.
In an embodiment, the additional IoT sensors, such as nutrient sensors and pH sensors, are installed in the field alongside the soil moisture sensors. These sensors gather data on soil quality, including nutrient levels and acidity, which are crucial indicators of crop health. The blockchain server's data processing and analysis module 110a compares these multi-factor metrics against predefined optimal agricultural conditions. Insurance adjustments are made based on a broader set of data inputs, allowing for more nuanced policy adjustments that account for comprehensive field health.
The smart contract module 114 is configured to cooperate with said data processing and analysis module 110a to assess a risk assessment of policy insurance in real-time to tailor the policy according to current conditions and generate a new or adjusted insurance policy automatically.
The smart contract module 114 is configured, receives said adjusted insurance coverage and automatically processes said insurance claim to initiate payout disbursement to an insured party upon successful claim verification and further securely record said insurance claim and payout disbursement in an immutable ledger as a tamper-proof data, and generate and deploy a smart contract on the blockchain network.
In an embodiment, the smart contract module 114 is configured to manage insurance policies, claims, and payouts, wherein each insurance policy is encoded into a smart contract and stored on a decentralized blockchain network, ensuring immutability and transparency of all insurance-related transactions.
In an embodiment, the smart contract module 114 further comprises a customizable policy module 114a configured to allow policyholders to customize specific terms and conditions of the insurance policy, such as coverage limits, premium adjustments, and deductible amounts, which are then automatically updated in the smart contract.
In an embodiment, the smart contract module 114 further comprises a multi-layer encryption module 114b configured to provide additional layers of encryption for sensitive data, ensuring that all data transmitted between the IoT devices, data processing module, and smart contracts remain secure against unauthorized access or tampering.
In an embodiment, the system includes a decentralized data-sharing mechanism that allows relevant stakeholders-such as farmers, insurance companies, agricultural consultants, and government bodies-to access real-time data from the IoT devices. By using blockchain technology, data is shared securely and transparently, ensuring all stakeholders have up-to-date information. This shared access allows for better decision-making, quicker claims verification, and the ability to collaboratively assess risks and adjust policies.
In an embodiment, the system integrates automated disaster relief coordination. In the event of natural disasters such as floods, droughts, or cyclones, the system automatically triggers a disaster relief response alongside the insurance adjustment. Smart contracts are programmed to connect with disaster relief funds and government programs, ensuring quick disbursement of aid directly to the affected parties. This ensures that, beyond insurance claims, farmers receive immediate support during crises.
In an embodiment, the system 100 is configured for parametric insurance, where payouts are based on predefined triggers rather than loss assessments. For example, if soil moisture drops below a critical threshold or a severe weather event is detected, the smart contract module (114) automatically initiates a payout process without the need for a traditional claims adjustment process. This provides quick financial relief to farmers and reduces the administrative burden on insurance providers.
In an embodiment, the system 100 includes an incentive mechanism that rewards farmers for adopting best practices. IoT devices monitor sustainable farming activities such as optimized irrigation, pest management, and soil conservation techniques. The blockchain server 110 records these activities and provides real-time feedback. Farmers demonstrating good practices could receive premium discounts, bonus coverage, or direct financial incentives, thus encouraging environmentally friendly and efficient farming practices.
In an alternative embodiment, the system 100 includes a user-friendly mobile application that provides farmers with real-time access to all data collected by the system. The application allows farmers to monitor soil moisture, weather patterns, and crop health metrics, and receive updates on their insurance status. Additionally, it allows farmers to manually report issues, request coverage adjustments, and track claim status directly, enhancing user engagement and satisfaction.
Figures 2A-2B illustrate a blockchain-based smart contract system for automated crop insurance in accordance with an embodiment of the present disclosure. The order in which method 200 is described is not intended to be construed as a limitation, and any number of the described method steps may be combined in any order to implement method 200, or an alternative method. Furthermore, method 200 may be implemented by processing resource or computing device(s) through any suitable hardware, non-transitory machine-readable medium/instructions, or a combination thereof. The method 200 comprises the following steps:
At step 202, the method 200 includes monitoring, by at least one Internet of Things (IoT) based soil moisture sensor 102 installed in an irrigation field, soil moisture levels in real-time.
At step 204, the method 200 includes capturing, by at least one IoT-based imaging device 104 installed in said irrigation field, at least one crop image.
At step 206, the method 200 includes tracking, by at least one IoT-based microprocessor 106 implemented in a weather station, weather patterns in said irrigation field.
At step 208, the method 200 includes collecting, by an IoT data collection device 108, said soil moisture levels from said IoT-based soil moisture sensor 102, said crop image from said IoT-based imaging device 104, and said weather patterns from said IoT-based microprocessor 106 over an IoT based network.
At step 210, the method 200 includes communicating, by a blockchain server 110, with said IoT-based data collection device 108 over a wireless communication medium 112 to receive said soil moisture levels, said crop image, and said weather patterns.
At step 212, the method 200 includes continuously receiving and processing, by a data processing and analysis module 110a, real-time data related to said soil moisture levels, said crop image, and said weather patterns, and comparing said received real-time data against predefined agricultural conditions and thresholds parameter.
At step 214, the method 200 includes adjusting, by said data processing and analysis module 110a, an insurance coverage based on said comparison, including increasing or decreasing coverage levels in response to received real-time data.
At step 216, the method 200 includes assessing, by a smart contract module 114, a risk assessment of policy insurance in real-time to tailor the policy according to current conditions and generating a new or adjusted insurance policy automatically.
At step 218, the method 200 includes receiving, by said smart contract module 114, said adjusted insurance coverage and automatically processing said insurance claim to initiate payout disbursement to an insured party upon successful claim verification and securely record said insurance claim and payout disbursement in an immutable ledger as a tamper-proof data, and generating and deploying a smart contract on the blockchain network.
Figures 3A-3B illustrate a flowchart for an operational workflow of automated crop insurance via smart contracts in accordance with an embodiment of the present disclosure. Figure 3A illustrates a flowchart for an operational workflow of automated crop insurance via smart contracts. Figure 3A shows the operational flow of the blockchain-based smart contract system for automated crop insurance, highlighting how real-time data from various IoT devices is utilized to manage insurance policies dynamically and automate the claims process. The process begins with the IoT Data Collection stage, where data from three primary sources is continuously monitored:
• Soil Moisture Levels: Sensors track the moisture content in the soil, providing critical data that reflects the field's irrigation status.
• Crop Health Indicators: Imaging devices capture data on crop conditions, monitoring for signs of stress, disease, or pest infestation.
• Weather Patterns: Weather stations equipped with microprocessors track local weather conditions, including temperature, humidity, and rainfall.
These data points feed into a real-time tracking system that continuously checks conditions against predefined agricultural thresholds. If conditions deviate from expected norms, the system adjusts the insurance coverage dynamically, ensuring the policy remains aligned with the actual risk conditions observed in the field.
When conditions are met that warrant an insurance response, such as adverse weather or poor crop health, the system triggers further actions within the Smart Contract Lifecycle. This stage includes two key processes:
• Claims Processing: When predefined adverse conditions are detected, the system processes the claim automatically by verifying the data against recorded conditions.
• Policy Issuance and Dynamic Risk Assessment: The smart contract module issues or adjusts the insurance policy based on current field data, tailoring coverage to reflect real-time risk levels.
If a claim is validated, the system initiates the Payout Disbursement process, where funds are automatically distributed to the insured party without manual intervention. This process is governed by the smart contracts deployed on the blockchain, ensuring that payouts are accurate, timely, and aligned with the terms of the policy.
The data related to insurance adjustments, claims, and payouts are securely recorded on the blockchain, ensuring that all transactions are tamper-proof and transparent. This stage is highlighted in the flowchart as Secure Data, which guarantees that all processed information is stored immutably, enhancing trust and accountability in the system.
Further, the system ensures a Transparent Process, maintaining clear and accessible records of all actions taken. This transparency provides a safety net for farmers, ensuring that they receive the appropriate insurance payouts when needed and that all operations are conducted openly.
Figure 3B shows the operation of the blockchain-based smart contract system for automated crop insurance, demonstrating how real-time data integration and automated processes manage insurance policies dynamically. The flowchart begins with the initiation of the policy through the Smart Contract System, where a single smart contract policy is integrated into the system. This policy is directly linked with real-time data collected from IoT devices installed in the field, which are responsible for monitoring soil moisture, crop health, and weather patterns.
Real-Time IoT Data Integration is central to the system, allowing continuous data flow from the field to the smart contract system. The data collected includes weather data, soil moisture levels, and crop health indicators. This integration ensures that the system has an up-to-date view of the field conditions, which is crucial for accurate risk assessment. The collected data is then used for Automated Risk Assessment and Payouts, where the system evaluates the conditions against predefined parameters. If any deviation from the set agricultural thresholds is detected, the system automatically adjusts the insurance coverage levels, enhancing the policy's responsiveness to current field conditions.
The Blockchain Security and Transparency component records all transactions and adjustments made within the system, ensuring that all data, including policy changes, claims, and payouts, are securely stored in an immutable ledger. This guarantees data integrity and provides a transparent record of all insurance activities, preventing tampering and fraud. The blockchain module also verifies the transaction, ensuring that each action taken aligns with the smart contract terms before it is permanently recorded.
The flowchart details several key processes in parallel with the main smart contract operations:
• Policy Issuance: This process involves the initial creation and issuance of the insurance policy based on the predefined conditions and thresholds. The policy management module continuously monitors and manages the policy throughout its lifecycle.
• Weather Data Collection: A weather station collects real-time weather data, which is critical for assessing potential risks to the crops. This data feeds directly into the risk assessment module for condition checks.
• Soil Moisture Data Collection: Sensors collect soil moisture data, which is crucial for determining the irrigation needs and health of the crops. This information is integrated into the overall data analysis to adjust coverage as needed.
• Condition Check: The system continuously checks the collected data against set conditions. If certain conditions are met, such as adverse weather or poor soil moisture levels, the system triggers coverage adjustments or payout actions.
• Coverage Adjustment: Based on the continuous assessment of the field conditions, the system dynamically adjusts the insurance coverage to reflect the real-time risks.
• Payout Trigger and Disbursement: When adverse conditions are confirmed that meet the criteria for a claim, the system triggers a payout automatically. The payout disbursement is then managed through the smart contract, ensuring funds are distributed correctly and promptly.
• Data Integration and Verification: All collected data is integrated and verified to ensure accuracy before any claims or policy adjustments are processed. This verification step safeguards against errors and maintains the integrity of the insurance process.
• Record Transaction and Immutable Ledger: Each action, from policy adjustments to payouts, is recorded as a transaction in the blockchain. The transactions are stored in an immutable ledger, providing a transparent and tamper-proof record of all insurance operations.
In an operative configuration, the system 100 for automated crop insurance integrates IoT technology with blockchain to deliver a responsive, secure, and efficient insurance service tailored for agricultural fields. This system's configuration includes interconnected components that monitor field conditions, assess risks, adjust insurance policies dynamically, and manage claims automatically, enhancing the insurance process's accuracy and reliability.
The system includes IoT-based soil moisture sensors 108a strategically installed throughout the irrigation field to continuously measure soil moisture levels in real time. These sensors provide critical data on soil conditions, enabling precise evaluation of crop health and irrigation needs. The data collected by the sensors is transmitted wirelessly to an IoT data collection device 108 at scheduled intervals or when significant changes are detected. Additionally, high-resolution IoT-based imaging devices 104 are placed in the field to capture images of crops from multiple angles. These imaging devices 104 monitor crop health, detect pests, and identify disease symptoms, sending captured images to the IoT data collection device 108 for further analysis. A weather station equipped with an IoT-based microprocessor is also installed near the field to monitor local weather patterns such as temperature, humidity, rainfall, and wind speed. This weather data is integrated with other field data, providing a comprehensive overview of the conditions impacting the crops.

The IoT data collection device 108 serves as the centralized hub of the system, aggregating data from soil moisture sensors, imaging devices, and weather station microprocessors. It pre-processes this data to ensure consistency and compatibility before transmitting it to the blockchain server 110. This device facilitates seamless communication over a secure IoT network 112, ensuring that all collected data is efficiently managed and transmitted for further processing. The blockchain server 110 is a critical component that receives real-time data from the IoT data collection device. It comprises a Data Processing and Analysis Module 110a that analyzes current field conditions, comparing incoming data against predefined agricultural thresholds such as optimal soil moisture levels, ideal weather conditions, and crop health benchmarks. Based on this analysis, the module evaluates the current insurance policy's risk level, dynamically adjusting coverage levels if conditions deviate from the set standards, such as during drought or pest infestations.

The Smart Contract Module 114 operates in conjunction with the Data Processing and Analysis Module 110a, deploying smart contracts on the blockchain network that define the insurance policy terms, including coverage, risk factors, and payout criteria. This module 114 automates the claim processing, verifying claims against blockchain-recorded data when predefined conditions are met. If the claim is validated, the system initiates the payout process automatically, eliminating manual intervention. Additionally, all transactions, including claims, policy adjustments, and disbursements, are securely recorded on the blockchain ledger, ensuring transparency, preventing tampering, and maintaining data integrity.

To facilitate seamless data flow, the system employs a secure wireless communication medium 112, utilizing protocols such as LoRaWAN, Zigbee, or 4G/5G networks. Advanced encryption standards are implemented to protect data during transmission, ensuring confidentiality and integrity. The system is highly scalable, designed to accommodate various field sizes and sensor types, making it adaptable to different agricultural settings. Its interoperability with various IoT sensors and blockchain platforms allows for easy integration of new technologies, ensuring that the system remains relevant and effective in evolving agricultural environments.
Advantageously, the system 100 enhances data accuracy and provides real-time monitoring by utilizing IoT-based soil moisture sensors, imaging devices, and weather microprocessors, ensuring insurance decisions are informed by precise, up-to-date agricultural data. This automation reduces human error and the potential for fraud, leading to more reliable insurance operations. The system also supports responsive and adaptive insurance policies that automatically adjust coverage based on real-time conditions, aligning insurance terms with actual risks faced by farmers. Cost and time efficiencies are realized through automated data collection, risk assessment, and claim processing, significantly reducing administrative overheads and accelerating payout timelines. Additionally, the use of blockchain technology ensures all transactions, including insurance claims and adjustments, are securely recorded in an immutable ledger, enhancing transparency, and accountability, and preventing tampering. This scalable and secure integration of IoT and blockchain enables proactive risk management and builds farmer confidence by providing timely, accurate insurance services, ultimately fostering a more resilient agricultural sector.
The functions described herein may be implemented in hardware, software executed by a processor, firmware, or any combination thereof. If implemented in software executed by a processor, the functions may be stored on or transmitted over as one or more instructions or codes on a computer-readable medium. Other examples and implementations are within the scope and spirit of the disclosure and appended claims. For example, due to the nature of software, functions described above can be implemented using software executed by a processor, hardware, firmware, hardwiring, or combinations of any of these. Features implementing functions may also be physically located at various positions, including being distributed such that portions of functions are implemented at different physical locations.
The foregoing description of the embodiments has been provided for purposes of illustration and is not intended to limit the scope of the present disclosure. Individual components of a particular embodiment are generally not limited to that particular embodiment, but are interchangeable. Such variations are not to be regarded as a departure from the present disclosure, and all such modifications are considered to be within the scope of the present disclosure.
TECHNICAL ADVANCEMENTS
The present disclosure described herein above has several technical advantages including, but not limited to, the realization of a blockchain-based smart contract system and a method for automated crop insurance that:
• real-time processing;
• ensuring that insurance decisions are based on accurate, real-time data;
• enhancing trust and reliability in the insurance process;
• dynamically adjust insurance coverage in response to real-time field data;
• reduces administrative costs and processing times;
• provides a tamper-proof record of all insurance-related transactions, offering transparency and accountability; and
• provides a scalable solution that can be deployed across various agricultural fields and can handle large volumes of data securely.
The embodiments herein and the various features and advantageous details thereof are explained with reference to the non-limiting embodiments in the following description. Descriptions of well-known components and processing techniques are omitted so as to not unnecessarily obscure the embodiments herein. The examples used herein are intended merely to facilitate an understanding of ways in which the embodiments herein may be practiced and to further enable those of skill in the art to practice the embodiments herein. Accordingly, the examples should not be construed as limiting the scope of the embodiments herein.
The foregoing description of the specific embodiments so fully reveals the general nature of the embodiments herein that others can, by applying current knowledge, readily modify and/or adapt for various applications such specific embodiments without departing from the generic concept, and, therefore, such adaptations and modifications should and are intended to be comprehended within the meaning and range of equivalents of the disclosed embodiments. It is to be understood that the phraseology or terminology employed herein is for the purpose of description and not of limitation. Therefore, while the embodiments herein have been described in terms of preferred embodiments, those skilled in the art will recognize that the embodiments herein can be practiced with modification within the spirit and scope of the embodiments as described herein.
The use of the expression "at least" or "at least one" suggests the use of one or more elements or ingredients or quantities, as the use may be in the embodiment of the disclosure to achieve one or more of the desired objects or results.
While considerable emphasis has been placed herein on the components and component parts of the preferred embodiments, it will be appreciated that many embodiments can be made and that many changes can be made in the preferred embodiments without departing from the principles of the disclosure. These and other changes in the preferred embodiment as well as other embodiments of the disclosure will be apparent to those skilled in the art from the disclosure herein, whereby it is to be distinctly understood that the foregoing descriptive matter is to be interpreted merely as illustrative of the disclosure and not as a limitation. , Claims:WE CLAIM
1. A blockchain-based smart contract system (100) for automated crop insurance, said system (100) comprising:
• at least one Internet of Things (IoT) based soil moisture sensor (102) installed in an irrigation field and configured to monitor soil moisture levels in real-time;
• at least one IoT-based imaging device (104) installed in said irrigation field and configured to capture at least one crop image;
• at least one IoT-based microprocessor (106) implemented in a weather station and configured to track weather patterns in said irrigation field;
• an IoT data collection device (108) configured to collect said soil moisture levels from said IoT-based soil moisture sensor (102), said crop image from said IoT-based imaging device (104), and said weather patterns from said IoT-based microprocessor (106) over an IoT based network; and
• a blockchain server (110) configured to communicate with said IoT-based data collection device (108) over a wireless communication medium (112) to receive said soil moisture levels, said crop image, and said weather patterns, wherein said blockchain server (110) comprises:
o a data processing and analysis module (110a) configured to cooperate with said IoT-based data collection device (108) to continuously receive and process real-time data related to said soil moisture levels, said crop image, and said weather patterns, further configured to compare said received real-time data against predefined agricultural conditions and thresholds parameters and further configured to adjust an insurance coverage based on said comparison, including increasing or decreasing coverage levels in response to received real-time data;
• a smart contract module (114) configured to cooperate with said data processing and analysis module (110a) to assess a risk assessment of policy insurance in real-time to tailor the policy according to current conditions and generate a new or adjusted insurance policy automatically, and
further, receive said adjusted insurance coverage and automatically process said insurance claim to initiate payout disbursement to an insured party upon successful claim verification and further securely record said insurance claim and payout disbursement in an immutable ledger as a tamper-proof data, and generate and deploy a smart contract on the blockchain network.
2. The system (100) as claimed in claim 1, wherein said IoT data collection device (108) comprises the following steps:
• a soil moisture monitoring module (108a) is configured to capture real-time monitoring of soil moisture levels by means of at least one sensor to assess irrigation needs and drought conditions;
• a crop health monitoring module (108b) is configured to capture at least one image of crops by means of at least one capturing device to track crop health indicators, including growth patterns, disease detection, and pest infestation;
• a weather monitoring module (108c) is configured to capture and track weather patterns by means of at least one weather station, including temperature, rainfall, and humidity levels; and
• a predictive analytics module (108d) is configured to analyze historical and real-time data from the soil moisture monitoring module (108a), crop health monitoring module (108b), and weather monitoring module (108c) to predict future agricultural conditions, enabling proactive adjustments to insurance coverage and policy terms.
3. The system (100) as claimed in claim 1, wherein said wherein the data processing and analysis module (110a) further comprises an anomaly detection module (110a-1) configured to identify irregular patterns or anomalies in the real-time data received from the IoT data collection device (108), triggering alerts for potential risks such as unexpected weather events or sudden changes in crop health.
4. The system (100) as claimed in claim 1, wherein said smart contract module (114) is configured to manage insurance policies, claims, and payouts, wherein each insurance policy is encoded into a smart contract and stored on a decentralized blockchain network, ensuring immutability and transparency of all insurance-related transactions.
5. The system (100) as claimed in claim 1, wherein said smart contract module (114) further comprises a customizable policy module (114a) configured to allow policyholders to customize specific terms and conditions of the insurance policy, such as coverage limits, premium adjustments, and deductible amounts, which are then automatically updated in the smart contract.
6. The system (100) as claimed in claim 1, wherein said smart contract module (114) further comprises a multi-layer encryption module (114b) configured to provide additional layers of encryption for sensitive data, ensuring that all data transmitted between the IoT devices, data processing module, and smart contracts remain secure against unauthorized access or tampering.
7. The system (100) as claimed in claim 1, wherein said data processing and analysis module (110a) further comprises an anomaly detection module (110a-1) configured to identify irregular patterns or anomalies in the real-time data received from the IoT data collection device (108), triggering alerts for potential risks such as unexpected weather events or sudden changes in crop health.
8. The system (100) as claimed in claim 1, wherein said system (100) is configured for parametric insurance, where payouts are based on predefined triggers rather than loss assessment.
9. A method (200) for automated crop insurance, said method (200) comprises the steps of:
• monitoring, by at least one Internet of Things (IoT) based soil moisture sensor (102) installed in an irrigation field, soil moisture levels in real-time;
• capturing, by at least one IoT-based imaging device (104) installed in said irrigation field, at least one crop image;
• tracking, by at least one IoT-based microprocessor (106) implemented in a weather station, weather patterns in said irrigation field;
• collecting, by an IoT data collection device (108), said soil moisture levels from said IoT-based soil moisture sensor (102), said crop image from said IoT-based imaging device (104), and said weather patterns from said IoT-based microprocessor (106) over an IoT based network;
• communicating, by a blockchain server (110), with said IoT-based data collection device (108) over a wireless communication medium (112) to receive said soil moisture levels, said crop image, and said weather patterns;
• continuously receiving and processing, by a data processing and analysis module (110a), real-time data related to said soil moisture levels, said crop image, and said weather patterns, and comparing said received real-time data against predefined agricultural conditions and thresholds parameters;
• adjusting, by said data processing and analysis module (110a), an insurance coverage based on said comparison, including increasing or decreasing coverage levels in response to received real-time data;
• assessing, by a smart contract module (114), a risk assessment of policy insurance in real-time to tailor the policy according to current conditions and generating a new or adjusted insurance policy automatically, and
• receiving, by said smart contract module (114), said adjusted insurance coverage and automatically processing said insurance claim to initiate payout disbursement to an insured party upon successful claim verification and securely record said insurance claim and payout disbursement in an immutable ledger as a tamper-proof data, and generating and deploying a smart contract on the blockchain network.

Dated this 25th Day of November, 2024

_______________________________
MOHAN RAJKUMAR DEWAN, IN/PA - 25
OF R. K. DEWAN & CO.
AUTHORIZED AGENT OF APPLICANT

TO,
THE CONTROLLER OF PATENTS
THE PATENT OFFICE, AT CHENNAI

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