The WBG [World Bank Group] and IFC [International Finance Corporation] estimate the finance gap among formal and informal MSMEs [Micro, Small and Medium Enterprises] to be 18 percent and 11 percent of developing economies GDP [Gross Domestic Product], respectively. The MSME finance gap varies considerably across regions. Access to finance for working capital purposes, which is the focus of SCF [Supply Chain Finance], is a key element of the finance gap among MSMEs.7

1. Outline the concept of a smart contract.

2. Map a hypothetical example of an agricultural supply chain. Focus on identifying the different actors and the interactions between the actors along the supply chain, i.e., who buys (sells) what from (to) whom at what point.

3. Identify two areas along the agricultural supply chain that you mapped where a smart contract can be applied. Explain how each of these smart contracts would work, focusing on sources of data and how these sources of data can be used in the execution of a smart contract.

4. List and describe five positive outcomes for smallholder farmers in the application of smart contracts to agricultural supply chains.