Lately, legalization in several countries has helped boost the cannabis industry as the CBD has many benefits,producing an explosion of many cannabis-related companies, some even going public. Cannabis stocks listed on their exchanges have surprising similarities with cryptocurrencies, in fact both are part of recent and emerging companies that are still working to obtain regulatory regulation at all levels. And both suffer from high volatility due to a market that does not understand these assets as value. But at the same time, they have a special appeal for small investors thanks to their ease of use and simplified access. However, beyond cryptocurrencies, the true potential for the cannabis sector lies in blockchain, which is the underlying technology behind cryptocurrencies and a concept that has the ability to elevate the cannabis industry to a new level of recognition.
Cannabis and the Blockchain
Cannabis was declared an illegal substance for many years, the lack of regulation made it difficult for many cannabis-related businesses to establish themselves legally. However, laws have begun to be relaxed as governments have recognized that the revenue potential of taxing cannabis use is much greater than that of criminalizing it. Cryptocurrencies go through a similar dark zone. Many governments associate its use with money laundering, tax evasion, terrorist financing and illegal drugs. These claims may have had some validity from the very beginning of the creation of the blockchain. However, in recent years, technology has advanced to provide viable solutions to problems related to banking, lending, logistics and a wide range of social, financial and economic challenges. In fact, the word blockchain has been making waves in the tech industry since it emerged as a solution for tracking and securing the exchange of cryptocurrencies. Designed as a digital ledger of transactions that is duplicated and distributed to every computer on a network, the blockchain creates an unbreakable cryptographic signature called a hash that stores data in a way that cannot be decrypted or manipulated, creating a seamless record. transparent interactions during a project throughout its useful life. Therefore, a blockchain can track anything from the sale and ownership of a few gold coins to the entire cycle of a cannabis plant, from seed to the bud that will end up in the hands of the consumer. All parties investing in the project have full visibility into an immutable, transparent account of every change, regardless of the change's importance to the asset. A blockchain is a data structure whose information is grouped into blocks to which meta-information relative to another previous chain block in a timeline is added. Governments around the world are slowly starting to recognize the technological potential of blockchain to create more transparent and open systems to reduce bureaucracy. Large cryptocurrency exchanges that have opted for ease of use to win over new users are also working to address these concerns and successfully achieve regulatory clarity for the entire crypto space.
Exploring the uses of blockchain in the cannabis market
As we have mentioned, with blockchains it is possible to obtain all the information about the life of a product, including studies of its effectiveness or consumer comments; and all this, in a system that can make it easily accessible to those parties that need to access it at any time safely. In the supply chain, it could bring integrity to this industry essential for its mass popularization. Below are some examples where blockchain-based technology has benefited cannabis businesses: Blockchain technology ensures a permanent and accurate record, but also allows for quick access to specific details within a large amount of stored information. Companies can instantly obtain the complete history of a given product and access current and past locations in the supply chain, from production centers to distribution points, avoiding potential fraud or flights by locating any problems that may arise. Blockchain technology allows traceability of the entire cannabis supply chain, from the birth of the plant to its conversion into smoke. Providing consumers with an x-ray of the supply chain benefits brand owners; In fact, it is possible to give them confidence in the consistency, quality and safety of legal cannabis, allowing them to take a piece of the pie on the black market. With blockchain, it is possible to show the consumer how one product is superior to another without having to face accusations of bias or inaccuracies. It is very important from the consumer's point of view to know exactly what they are buying as well as its origin. So now you know! Both blockchain and CBD are beginning to gain global recognition.
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