What is blockchain?
Blockchain technology is a decentralized database system that uses cryptography to secure transactions and create a digital ledger of ownership. A blockchain network is shared across many computers, making it extremely difficult to tamper with data stored on the network.
Why is blockchain being implemented in the cannabis industry?
Cannabis businesses have been slow to adopt blockchain technology due to its complexity and high cost. However, the recent legalization of marijuana in Canada and several states throughout the U.S. has created a need for a reliable method of tracking product provenance and quality control. Blockchain’s distributed nature makes it ideal for these applications.
How does blockchain work?
A blockchain is a public record of information that cannot be altered once recorded. Each block of information contains a timestamp and cryptographic hash code linked to previous blocks. Once added to the chain, each subsequent block becomes immutable and unalterable.
How does blockchain benefit the cannabis industry?
Blockchain technology provides a secure way to track products from seed to sale. Cannabis companies can use blockchain to verify the authenticity of their products, track where they were grown, and ensure that only legal growers produce them.
Who is implementing blockchain in the cannabis industry?
Several Canadian and American companies are using blockchain technology to improve transparency and traceability in the cannabis supply chain. Companies like Hempco Food and Fiber Inc., CannTrust Holdings Inc., Aurora Cannabis Inc., and Tilray Inc. are testing out different ways to implement blockchain in their operations.
Where else is blockchain being implemented in industries outside of cannabis?
Companies like IBM, Microsoft, JPMorgan Chase & Co., and Deloitte are already using blockchain to streamline business processes and reduce costs. These technologies are being adopted in industries ranging from banking to healthcare.
Is blockchain ready for mainstream adoption?
Yes! In fact, the first blockchain was developed in 1991. Since then, blockchain has evolved to become a powerful tool for managing financial transactions, recording land titles, and verifying identities online. As the cannabis industry continues to evolve, blockchain will play a major role in ensuring that consumers receive safe, authentic, and consistent products.