With the marijuana industry being decentralized and all over the place like an octopus, companies are looking to organize the market by tapping into blockchain technology to help distributors.
First of all, for those who do not know exactly what blockchain technology is, it is defined broadly: “As a mechanism for reaching consensus regarding the state of a shared database between multiple parties who don’t trust each other. ” Thanks to Pavel Kravchenko, Founder of Distributed Lab, for giving a simple definition.
And what currency does it use? Basically, blockchain’s currency is really the decentralized cryptocurrency like Bitcoin or tokens.
The giant US IBM Corp. had already provided the B.C. government a report in November on how blockchain technology could be applied to the distribution of marijuana.
One of the companies tapping into this lucrative market is Budbo.
Budbo is a US startup based in California and is working on products to help streamline the wide processes of the marijuana supply chain. This will improve transparency, efficiency and reduce fraud.
in November 2016, Budbo released an app allowing users and medical patients to swipe through thousands of locally available marijuana products, ITWorldCanada reported.
According to ITWorldCanada has nearly 100,000 mobile users.
But Budbo is now looking to grow even more. In December, Budbo announced the sale of tokens for its upcoming ethereum-based blockchain platform. They were emphasizing its focus on the Canadian market.
“As it stands, there is significant separation between cannabis producers, growers, labs, craftsmen, and dispensaries,” Budbo wrote in a statement in a whitepaper.
Budbo is coveting to be the first, fully-integrated blockchain-based solution for all aspects of the marijuana industry, said Luke Patterson, president, and co-founder of Budbo, in a press release.
“Imagine, if you will, the entire cannabis industry as a decentralized autonomous organization,” he said. “A patient’s identification and medication regimen will be encrypted and safely stored within the ledger of a blockchain. The smart contract enables the safe transfer of goods through verifiable proof-of-pickup, bill of lading, and proof of delivery. Medical testing of cannabis potency is verified and immutable as the product is moved from lab to dispensary.”
Budbo is currently holding a pre-sale for its tokens, which ends Jan. 29. A total of 200,000,000 tokens have been issued. Each of which is on sale for 20 cents (USD), Alex Coop from ITWorldCanada reported.
Yet another company, Nuvus Blockchain has formed to build the New Global Exchange Platform with big data and supply chain verification ecosystem.
Nuvus said it wants to start the largest development and implementation of public and permission-based private blockchain platform. The goal is to leverage a variety of blockchain technologies for the cannabis industry.
“We will focus on the use of Blockchain as a technology to enhance the overall chain of custody from seed to user,” Globe News Wire reported the company as saying in a statement published on Tuesday. “Blockchain is a highly effective trust mechanism which uses a cryptographically-secure shared ledger to irrefutably track complex transactions amongst parties while protecting privacy and eliminating fraud.”
A new industry
Meanwhile, Liberty Leaf Holdings Ltd., a publicly traded Canadian company has recently partnered with Blox Labs Inc. to develop “CannaBlox,”. “CannaBlox” is a blockchain-based supply chain management platform for the legalized marijuana industry.
Liberty Leaf Holdings Ltd. has interests in the use of both medicinal and recreational marijuana.
Blox CEO and director Harald Seemann described in a press release that blockchain technology as the natural fit for the growing recreational and medical marijuana marketplace.