In case you didn’t hear, cannabis is taking over the world! Ok, well maybe not the world, but it is beginning to gain its freedom in more places each year. 2018 has been a significant success chapter in the overall story of the rise and current fall of prohibition.
In October, Canada became the first G7 country to legalize cannabis for adult consumption. To the south in the U.S. 3 more states said yes to cannabis in the midterm elections, and more recently South Korea also legalized the medicinal use of cannabis.
Unfortunately, in places such as the United States, many “legal” cannabis businesses still have to operate as cash-only businesses. This is similar to the black market which has kept the plant alive for so long.
There is a technology though that you may have heard of that could forever change the future of the cannabis industry, helping in more ways than one. I am talking about nothing other than blockchain technology.
What is Blockchain Technology?
Forbes defines a blockchain as a type of distributed, digital ledger, in their Two-Minute Guide To Blockchain.
Essentially information is contained in a block and is added to a chain of other blocks of data, hence the name blockchain. This type of ledger, as well as cryptocurrency (the most popular currency utilized in blockchain transactions), are decentralized and deregulated in nature.
This leads many to believe they are a perfect fit for the cannabis industry. An industry that has existed for many years in a black market but that is starting to become regulated in more places globally.
How Blockchain Technology Can Help Elevate the Cannabis Industry
One of the most significant benefits that blockchain has to offer the cannabis space is through financial transactions utilizing cryptocurrencies. At this time, many cannabis businesses throughout the U.S. especially are operating as cash-only entities. This causes major issues and security risks as you can probably imagine.
Within the cannabis industry, many regulations require what is known as a seed to sale tracking system. This is a system that tracks everything from the acquisition of seeds to product leaving the storefront. For this, many new cannabis entities are opting to utilize blockchain technology for tracking and transactions.
One such company is Farma Trust whose CEO Raja Sharif stated “Blockchain and the supply of regulated cannabis is a perfect match. Cannabis producers are currently setting up facilities without any legacy systems in place, which means they can leapfrog old technology and use the latest innovative solutions.
Are you a fan of crypto and cannabis? Do you see a way that blockchain could help the industry that isn’t listed above? Give us a shoutout on Social Media @Roottie.com and let us know your thoughts!