The Blockchain and the Marijuana industry – Bonnie and Clyde in motion
Marijuana has shown great potential for economic benefits over the years. It has benefits such as increased revenue for the government and better opportunities for investors. Other opportunities are job creation, saving of money used on cannabis law-enforcement costs. There are several economic and medical benefits associated with the legalization of marijuana. These benefits prove that Legalization of Marijuana is a good idea.
The Legalization of Marijuana
Gradually, this legalization is happening! The use of marijuana is still illegal under the federal government laws in the United States. Yet, several states including Washington DC have legalized its use. The medical use of cannabis is also an added advantage. Recently, Canada approved the legalization of marijuana’s recreational use.
The acceptance of marijuana shows the creation of a new system. Our world is technology inclined. Thus, there is no better way is there to run a newly legalized system other than using the blockchain.
Taking a look at the definition of the blockchain rings a bell. It is a digital, distributed, and a decentralized ledger that underlies virtual currencies. It is responsible for recording all transactions without the need for a third-party, such as a bank.
Cannabis and the blockchain technology may look like two worlds far apart. When you look closer, it becomes easy to see they are a perfect pair. A good instance is the quality of transactions the blockchain brings to the table. The model of the transactions done is also an advantage.
Reasons why incorporating the blockchain technology into the cannabis industry is perfect.
The blockchain ledger records are transparent, immutable and unchanging.
The transparency of the blockchain ledgers is necessary for a new industry. Financial companies need a way to audit cannabis companies accurately. The government needs a way to tax these companies too. The cannabis industry was once wholly illegal; giving room for inefficiencies. In a bid to regulate its finances, transparency is essential. The blockchain ledger records are transparent and serve this purpose well.
The blockchain technology helps businesses pinpoint their efficiencies.
The use of blockchain for the cannabis industry is not only helpful to the government. The companies also have several benefits that come with embracing the blockchain. The cannabis industry has been a “dark” one in times past. Legalizing it implies running in a structured way. As this is a new and evolving industry, there would be inefficiencies. The blockchain technology provides a real-time trail for improving marijuana businesses.
Quality Control Guaranteed
With the use of marijuana for medical purposes in these times, quality control is vital. The blockchain makes consumers and retailers sure of getting the quality products. Thus, oversight of quality control is less likely to arise with the use of blockchain. This advantage still buoys down to the creation of the transparent ledger.
Faster Transactions Using Cryptocurrency
The transaction time of cryptocurrency is unbeatable. Cryptocurrency enhances the industry’s transaction processes, both on domestic and international fronts. It also has a secure and accurate means of record keeping. The blockchain makes electronic payments possible at high speeds. Yet, the costs are lower. This advancement is nothing to take one by surprise. The blockchain has resolved even anticipated issues in today’s banking system. The best solution is for the banking to forge partnerships.
This legalization is an excellent opportunity for all stakeholders. These stakeholders include distributors, shippers, producers, government agencies as well as consumers. Many of startups in cryptocurrencies are making efforts to enter the cannabis industry. Several great partnerships are evolving, and the future could only be brighter from hereon.
Written by Demi Oye