Utilizing Blockchain Technology in the Cannabis Industry
Few industries are there that are as misunderstood as blockchain and cannabis. Both of these niches are in the nascent stage and exist in the speculative markets highly with the foggy regulatory conditions. However, they have received super talented programmers and entrepreneurs who are looking forward to solving the largest problems of the industry.
So, for understanding the synergy of blockchain and cannabis, you need to take a look beyond speculation and hype for understanding why blockchain is essential for the cannabis industry.
Blockchain and cannabis:
The cannabis industry of North America has encountered a high spike in attention and growth from all the entrepreneurs who seek to make value and ultimately strike it big, the investors are looking for a reliable blockchain solution and services provider, the activists are fighting for their belief on what is genuinely beneficial about the product, and the politicians are engaged in the heated debate of legalization.
Payment solutions, transparency, maintenance, and quality assurance, and general regulations have plagued the entrepreneurs for several years.
Essentially, the blockchain application development services are an integral part of an immutable distributed database sitting at the core of what is termed the crypto revolution by several people. Everything right from famous cryptos like Ethereum and Bitcoin to the publicly trading companies have used blockchain for solving uncountable problems for several businesses.
With the combination of technologies such as smart contracts and cryptocurrency, the cannabis industry can be helped by blockchain technology for solving a current problem and for navigating the ahead lying uncertain path.
Maintenance and quality assurance:
Businesses are enabled by blockchain development for managing their real-time supply chains. This eliminates the inescapable lag and paper trails. As the cannabis space is new, very few companies can make an efficient vertical integration in the supply chain that is lag-free and prevents product loss.
Cannabis is going to touch several businesses for making different costly failure points. Blockchain is being utilized by cannabis and can pinpoint any inefficiencies within the process.
By using the blockchain exchange services in the supply chain, cannabis businesses can offer customers a whole picture of the journey of the purchase. Also, the customers can see the number of parties it has touched.
The dispensaries can also completely guarantee their products contain the exact amount of CBD, THC, and whether it is Indica or Sativa dominant. Flawless math supports the supply chain and contributes to the all-over customer experience.
Storage and payment processing:
Payments are considered to be a major blight for the massive cannabis industry. Marijuana has been legalized by several states of the US up to a point. Cumbersome restrictions are provided by the federal law for the cannabis-based companies are allowed to store and accept payments.
Several business owners can operate as cash-only businesses. With revenues over millions of dollars, business owners are encountering a risky scenario. Moreover, high volume accounting will become a nightmare for the cash-only regulators and businesses, and they will have to shift through various financials and will end up with unclear tax liabilities’ views. This further contributes to the hesitations for more regulatory policies.
Because cryptos are unregulated and decentralized mostly, cannabis businesses can accept cashless, fast, and secure payments that are convertible into the greenbacks or can be sent anywhere across the globe with competitive speeds.
The cannabis industry of North America will enhance its sale by the end of this year. On the one hand, the federal restrictions are bounding the convent payment solutions companies. On the other hand, crypto entrepreneurs are setting themselves in a position so that they can not only change the payment methods of the cannabis industry but will also change the way, how worldly commerce operates.
It sets a transparency standard:
Because of the unchanging nature of the blockchain ledger and blockchain development services, they eliminate or reduce any powerful human-based deceptive practices or obfuscation. All this makes it highly easy for the governments and financial institutions to audit cannabis companies and keep track of the owned taxes.
It is specifically vital in the space of cannabis, where the businesses need to face fragmented regulations over the borders. All these businesses are empowered by blockchain with the point of origin’s tangible proof. And if any products are moved across state or national lines incurring taxes potentially or violating the federal law. Several entrepreneurs are citing blockchain for legalizing cannabis.
Right from the processing of payment and confirmation of identity up to tracking the all-over supply chain from the seed to the end-product, tons of entry points are there for the blockchain mechanism to enter into the cannabis industry.
As blockchain and cannabis continue to evolve together, deeper collaboration and mingling between the entrepreneurial talents will take place along with the political activism and technical advantages of both the community. It will make more cannabis businesses opt for the services of a reckoned blockchain consulting company to get in-depth insights.