CANNABIS INDUSTRY UTILIZING BLOCKCHAIN TECHNOLOGY
The cannabis industry and blockchain are two firms that are often overlooked and parallel to one another. Despite being young, both niches are pensive and set in a hazy fashion. Still, both have seen an influx of highly qualified managers and programmers eager to solve the biggest issues faced by their respective industries.
It is vitally important to take a step back and analyze how and why the cannabis industry needs blockchain systems and the mutual dependence both industries may experience.
A Glimpse of Cannabis and Blockchain
As the cannabis industry has grown and attracted attention from investors, it has also seen a spike in growth and expansion. Check out Homegrown Cannabis Co. as it is the leading cannabis seeds retailer these days.
While the cannabis industry’s progress was notable, there were also some setbacks. For decades, governing theory, payment solutions, quality assurance, and quality resources have been major challenges for cannabis firms.
There is much talk about the ‘crypto era,’ which is quite a changeless dispersed database. Businesses ranging from crypto companies like Bitcoin and Ethereum to publicly traded companies like IBM have relied on blockchain to resolve countless problems.
Blockchain can help the cannabis industry solve its current challenges and prepare for the uncertain future in conjunction with sister platforms like digital currency and smart contracts.
Establishing Transparency Standards
By preventing confusion or deception, a blockchain ledger greatly reduces or excretes human error. Keeping track of taxes owed by cannabis companies and financial systems would be easy with this system.
Cannabis businesses face fragmented statutes across borders, which is mainly important in the cannabis space. Blockchain will provide tangible proof of the origin of products and whether they are moving across state or national lines, likely causing more taxes or violating federal law. According to veteran investors, blockchain is one of the catalysts that could lead to the legalization of cannabis.
Despite being sued later for failing to register its Initial Coin Offering (ICO) with the SEC, the entire business plan remains unchanged.
Quality Assurance and Sustenance
The industry can manage supply chains in real-time through blockchain tech, reducing the need for a paper trail and its inherent lag. Few companies have achieved weak vertical cohesion in the cannabis space due to its nearly new status.
As cannabis is grown to get to authorized retailers, it will likely come into contact with several different markets, creating a series of potential costly failure points. In cannabis businesses that use blockchain, flaws in the process can be pinpointed and dropped fast.
In addition, cannabis firms will provide their customers with a complete view of their purchase journey. It was a seed to how many parties it touched before arriving in their shopping cart by using blockchain in their supply chain.
In addition, cannabis retailers will be able to fully guarantee that their products contain exactly the amount of THC, CBD, and whether they are Sativa or Indica dominant, as stated. Check out https://homegrowncannabisco.com/cannabis-seeds-rooms/high-thc-seeds to learn more about strains of cannabis. A supply chain based on flawless math caters to a better customer experience for first-time customers walking through legal dispensaries.
Processing And Storing Payments
Paying for cannabis is perhaps one of the biggest problems for the industry.
Despite the fact that nearly all states in the United States have permitted marijuana to some extent. Whether medically or recreationally, federal law restricts how cannabis-based businesses can accept and store payments. According to the Credit Union Times, only 300 out of the 11,000 U.S. banks give cannabis businesses accounts.
As a result, many business owners run their companies solely through cash. Business owners often face high-stakes risky scenarios due to revenue of hundreds of thousands, if not millions, of dollars. Moreover, accounting in high volumes tends to become a nightmare for cash-only businesses. Indexes have to sift through nebulous financial data and a vague sense of tax duties, which decreases the chances of being more lenient.
Due to dispersed and unregulated cryptos, they allow the cannabis industry to accept fast and secure payments converted into dollars. Moreover, it is sent anywhere around the world at competing rates.
In 2021, the cannabis industry is forecast to generate $20.2 billion in sales in North America. Bitcoin traders aim to change more than how payments are made to the cannabis industry; they aim to do the same for global commerce.
The Final Words
Blockchain tech can be used in many aspects of the cannabis industry, from payment processing and identity checks to track the supply chain from seed to sale.
It is assumed that the cannabis and blockchain industries will merge. Furthermore, they interact even more in the coming years with their respective business talents, tech prowess, and political activism.