The Use of Blockchain in the Cannabis World
January 28 2022 - 8:26AM
NEWSBTC
Blockchain and cannabis have one thing in common: they are both
disruptive developments changing how people do business worldwide,
particularly in the United States. When it comes to legal cannabis
producers, blockchain has the potential to completely transform an
industry that has been hampered by a shockingly slow development
trajectory, resulting in increased revenues in the future. This
isn’t only true for growers; blockchain’s impact on a sector will
also affect retailers and producers. But before we look into the
impacts, it is imperative to evaluate the cannabis industry’s
challenges? The transition from illicit to legal products hasn’t
happened as swiftly as predicted since recreational cannabis was
legalized in numerous places across the United States and Canada.
Those that joined the market early, anticipating high demand, have
been disappointed. Depending on your perspective of the sector, it
may come as no surprise that most cannabis is still sold illegally,
with illegal channels accounting for 80% of volume and 60% of value
in Canada. There are several reasons why the legalization of
cannabis hasn’t progressed as quickly as expected: Only a few
retail outlets exist. Legal products’ prices have risen. Product
selection is somewhat limited. In-store and online supply
shortfalls Uncertainty about government-regulated products Many of
these issues are being addressed as the cannabis business matures.
Producers granted licenses boost their cultivation, resulting in an
oversupply of cannabis. This, combined with the slow expansion of
the legal cannabis business, has resulted in an oversupply of
cannabis. Commercialization of the commodity, combined with recent
product overstock, is increasing pressure on legal suppliers to
lower their prices. Most crucially, blockchain will provide
encrypted traceability, which will aid in the resolution of other
difficulties. What role does blockchain play in this? As previously
stated, fear of government-sanctioned cannabis is still widespread.
For licensed retailers and growers, marketing is severely
restricted, preventing the dissemination of critical information
regarding the consistency, safety, and quality of legal cannabis.
Concerns about the health risks of smoking marijuana concentrates
have led to temporary bans on these products in locations like
Massachusetts in 2019. With so many farms and suppliers and such a
wide range of market supplies, it can be difficult for consumers to
locate products they like and can count on. Blockchain is a
decentralized digital technology that records all transactions
peer-to-peer. The software can swiftly check back on past ledger
entries because of hundreds of millions of copies of the same
chain. This ensures that hacking attempts are immediately detected
and addressed through comparison. Because information is digitally
saved and not held in one centralized location, adopting blockchain
to the cannabis sector would reduce vulnerability and enhance
transparency. Furthermore, transactions will not be overseen by a
single intermediary. Cannabis businesses have an advantage over
other companies attempting to implement blockchain technology and
have stringent traceability requirements. Because the legal
cannabis market is still relatively new, cannabis businesses are
more modern, making it easier to integrate a solution like a
blockchain into their workflow. These are usually small businesses
with a strong growth culture and less intricate supply networks and
structures. Another distinct advantage of blockchain is that it is
decentralized. Cannabis is a cash-only enterprise, at least in the
United States. This is because the product is still illegal on a
federal level and in more than half of the states and territories
in the United States. Due to the risk of funds confiscating or lost
without recompense, cannabis firms can not use institutions insured
by the Federal Deposit Insurance Corporation (FDIC). As a result,
legal cannabis transactions are increasingly being made using
blockchain-backed cryptocurrency like marijuana-specific
cryptocurrency. And to offer a very point-specific solution to both
industries (blockchain and cannabis), the Tangi token is leading
the way with a unique offering. Tangi token makes having a
marijuana-specific currency and gateway possible! Tangi Token is a
blockchain-based digital payment system driven by the cannabis
sector and aims to improve the retail purchasing experience,
overall satisfaction, and customer engagement. Tangi Pay Mobile
Phone App, Tangi Pay POS, and Tangi Loyalty Rewards Program are a
few linked parts that make up the Tangi Ecosystem. It’s based on
the Binance Smart Chain, a Decentralized Exchange with a
professional trading platform that allows for fast and secure
transactions inside the Tangi Community. Tangi Team also has an
impressive track record in management and advisory roles: With the
help of Charles Hoskinson, they created a working peer-to-peer
blockchain infrastructure. Charles is the founder of Cardano and
Ethereum’s ex-cofounder. Thanks to the great minds behind it, Tangi
will genuinely be considered the one-stop-shop solution for
cannabis-related transactions.
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