The cannabis industry is still relatively young. As such, the potential for applying new technologies is huge. The cannabis market is constantly and rapidly evolving. The regulatory strictness surrounding cannabis is still one of the main factors limiting growth.
One new technology will radically change cannabis. That technology is blockchain. Applying blockchain technology to the cannabis industry will completely revolutionize it. Here is a quick overview of how this new technology will improve and transform the cannabis industry in the near future.
Cut Out Illegal Manufacturers
The illegal marijuana market is still huge. Legalizing cannabis does shrink that market, but the advent of blockchain will speed up that process significantly.
Blockchain technology can provide a wide array of ways to cut out illegal manufacturers. There are multiple factors to consider here.
Blockchain technology can create a reliable system that can track products throughout the entire supply chain and check if they are legitimate.
Cracking down on counterfeit cannabis products will deal a blow to the black market. Increasing the transparency of the entire supply chain will go a long way in de-stigmatizing cannabis. This will help reduce the calls for increased and stifling regulations.
One company working on such a system is TheraCann out of Panama. Their TruTrace blockchain hub can check the authenticity of a product using a DNA based biotrace system. This technology will help make sure that cannabis products being sold are legal, traceable, and authentic.
Track Consumers’ Individual Usage and Purchases
The cannabis market suffers from a unique flaw that is stifling its growth. The inability to track consumers’ individual usage is preventing existing legislation from being applied effectively.
The two most glaring issues are schemes called smurfing and looping. Smurfing refers to purchasing the maximum amount of cannabis allowed, then repeating that at other locations. Looping is even simpler – it’s the practice of purchasing the maximum amount, leaving the store, and then returning to the same store to purchase the same amount again.
Blockchain offers a way to establish a universal, secure, and private method of tracking that can prevent abuse. Companies such as Tokes Platform are developing systems that give consumers private keys used to verify their identity.
A decentralized, anonymous system using blockchain can be instituted industry-wide, allowing businesses to refuse service to those that intend to circumvent the law. This will reduce demands for stricter regulations and make procuring illegal cannabis even harder.
Having access to data regarding the legal use of cannabis will allow the industry to better accommodate consumers. This type of data will also make a lot of meaningful research about the use of cannabis possible.
Form Weed-Focused Social Networks
Social media sites play a huge role in today’s businesses. However, the cannabis industry’s relationship with social media is complicated. The advent of blockchain technology will revolutionize this area and cannabis marketing will never be the same again.
There are a lot of restrictive regulations in place which hamper the ability of cannabis businesses to market themselves via social networks. Even when that is not the case, the social media platforms themselves often prohibit the marketing of cannabis in their terms of service.
Companies such as Smoke.network and CannaSOS are using blockchain technology to create new avenues for cannabis marketing online. The decentralized and anonymous nature of blockchain will allow for reliable and secure platforms that will cater to the cannabis industry.
The increased connectivity and marketing opportunities will revolutionize the online cannabis community. The anonymous, secure nature of blockchain is perfectly suited to mirror the benefits of social media.
All cannabis products are subject to significant sales taxes. The increase in tax revenue from cannabis is a strong argument for legalization. With the help of blockchain technology, the taxation of the cannabis industry can be improved and standardized.
Blockchain technology will allow businesses to collect accurate sales figures which cannot be manipulated. The data gathered will allow for standardized levels of taxation which don’t hinder growth as well as simpler and more efficient audits.
The efficiency of the tax system will increase – the legalization of cannabis will accelerate, and investing in cannabis will be simpler and more profitable. These factors are unique in that they have a real possibility of affecting both regulations and the long-term growth of the industry.
Allow Cannabis Banking
The inconsistency and conflict between state and federal laws have had a huge consequence on the cannabis industry. Banking is not readily available for cannabis businesses.
Not being able to make use of the benefits of banking is hampering the growth of small cannabis businesses. The ability to safely deposit, store, and withdraw money makes business more efficient.
While the conflict between federal and state laws will inevitably be resolved, blockchain technology is already offering a solution. Cannabis oriented cryptocurrencies such as PotCoin and Paragon provide business owners with much needed financial security.
The ability to store money will allow businesses to operate more easily and freely. Not having to physically store huge amounts of money will also make dispensaries safer. Paying employees, investing profits and all transactions will become more efficient. One of the larger obstacles for the cannabis industry will be removed with just one application of blockchain technology.
Increase Transparency in Cannabis Data
The biggest way in which blockchain will revolutionize cannabis is data. Blockchain technology will provide a unified, transparent, and secure database of invaluable data. Both the cannabis industry and the government will benefit immensely from this.
An integrated, transparent database will allow for accurate, nationwide coordination. This would be a huge step towards industry standardization. Legislators will have access to accurate data on which to base their decisions. Regulation and taxation will become more efficient.
The ability to access and share such a huge trove of information regarding the use of cannabis will revolutionize the industry. Information gathered and stored using blockchain is immune to tampering and completely secure.
This will allow the cannabis industry to achieve a far greater amount of transparency. Driven by concrete data and facts, the cannabis industry will become less volatile and risky. The newfound transparency will affect regulations and make investing in cannabis more appealing.