Why would blockchain technology/cryptocurrency be suited to the cannabis industry?
There are various applications of blockchain for cannabis. Most notably, for payment. Even though cannabis is now legal in over half of the United States, legally, it’s still in a limbo when it comes to commerce – most of the transactions in this industry re done with cash. This contradicts the whole reason for marijuana legalization – to reduce the crimes associated with cash transactions and to generate tax revenues.
Cryptocurrency platforms provide a means of transaction for cannabis companies. Further, blockchain platforms are providing an immutable way to verify provenance for marijuana products – showing the origin or the product, its quality, licensing, storage, distribution and other data across all of the supply chain from the grower to the customer. This provides the customers, authorities and regulators with the information they need to enable marijuana businesses to operate legally and efficiently.
What are the most notable projects that involve cannabis and cryptocurrency?
Alt Thirty-Six, Virtual Crypto
Is blockchain’s supply chain capabilities somehow especially suited to the cannabis industry in the US? How so?
Blockchain provides an immutable ledger of records, which enables this industry to record movement of product across the supply chain and various stakeholders to receive the information they need. This create a more secure, safe and efficient environment for production, distribution and trade of marijuana.
What benefits do these two industries offer to each other?
Since there is a synergy between the two industries, the cannabis industry can be a great market for blockchain provenance / supply chain platforms and crypto payment platforms as well. The blockchain/crypto industry is bridging the gap created from the lack of appropriate regulations and platforms that should have been created along with marijuana legalization.