Cannabis and blockchain could be the perfect match
The world is progressing at a phenomenal rate. The integration of cryptocurrency in the real world is will soon be a regular occurrence thanks to corporations like CME who aim to make Bitcoin investing a reality for anyone who can afford it.
The base of Bitcoin, and other virtual currencies, is blockchain technology, which in itself is growing at a rapid pace. It is not only being used for cryptocurrencies though. It is a great option for businesses who want to operate in a decentralized and transparent manner, which seems to be the way of the future.
Another development in the world is the rapid legalization of cannabis. What does that have to do with blockchain technology? A lot, according to IBM. It could be the answer to British Columbia’s data management of the herb.
Canada’s BC government have already started public discussions on the legislation of cannabis. These regulations could take place as soon as July next year.
“Blockchain is an ideal mechanism in which BC can transparently capture the history of cannabis through the entire supply chain, ultimately ensuring consumer safety while exerting regulatory control, from seed to sale. Blockchain is a highly effective trust mechanism which uses a cryptographically secure shared ledger to irrefutably track complex transactions amongst many known parties,” IBM stated.
Because the technology is distributed in nature, the risk of cyber-attacks is greatly reduced. All records will also be unchangeable, thereby negating the risk of fraud and transaction doctoring. It is extremely secure, and completely private.
The legal cannabis industry in the US is worth about $7 billion. With state legislation allowing for the legalization of it all over the world, the time has come to seriously consider where all of these transactions and information will be stored.
Also, most legalized cannabis traders are still trading in cash only for a number of regulatory reasons. This could lead to paper-filled files full of these cash records. Blockchain technology could therefore also lend a helping hand as a paperless record-keeping option. In addition, it offers a transparent manner of doing business.
Some recent startups have noticed a gap in the market and have started using blockchain technology to facilitate transactions with these cash-only traders. They account for nearly 75% of cannabis businesses, which means that there is a high profit possibility for these new businesses.
Blockchain is already being used for authentication purposes. Everledger is currently using the technology to verify the history of diamond transactions.