The use of blockchain in the cannabis world
Blockchain and cannabis have one thing in common: they are both disruptive developments that are changing the way people do business worldwide, especially in the United States.
When it comes to legal cannabis producers, blockchain has the potential to completely transform an industry hampered by a shockingly slow development trajectory, resulting in higher revenues in the future. This does not only apply to growers; The impact of blockchain on a sector will also affect retailers and manufacturers.
But before we look at the effects, is it necessary to evaluate the challenges of the cannabis industry?
The transition from illegal to legal products has not been as fast as predicted since recreational cannabis was legalized in many places in the United States and Canada. Those who entered the market early, anticipating high demand, are disappointed.
Depending on your perspective on the industry, it may come as no surprise that most cannabis is still sold illegally, with illegal channels accounting for 80% of the volume and 60% of the value in Canada. There are several reasons why cannabis legalization has not progressed as quickly as expected:
There are only a few outlets. The prices of legal products have risen. Product choice is somewhat limited. Shortages in store and online Uncertainty about government-regulated products
Many of these issues are being addressed as the cannabis business matures. Licensed producers encourage their cultivation, resulting in an oversupply of cannabis.
This, coupled with the slow expansion of the legal cannabis trade, has resulted in an oversupply of cannabis. The commercialization of the raw material, coupled with the recent product surpluses, is increasing the pressure on legal suppliers to lower their prices.
Most importantly, blockchain provides encrypted traceability, which will help solve other problems.
What role does blockchain play in this?
As mentioned earlier, fear of government-sanctioned cannabis is still widespread. For licensed retailers and growers, marketing is severely restricted, preventing the dissemination of critical information about the consistency, safety and quality of legal cannabis.
Concerns about the health risks of smoking marijuana concentrates led to a temporary ban on these products in locations such as Massachusetts in 2019. With so many farms and suppliers and such a wide variety of market supplies, it can be difficult for consumers to find products that she likes and can count.
Blockchain is a decentralized digital technology that records all transactions peer-to-peer.
The software can quickly check for past ledger entries due to hundreds of millions of copies of the same chain. This ensures that hacking attempts are immediately detected and dealt with by comparison.
Since information is stored digitally and not kept in one central location, the adoption of blockchain in the cannabis sector would reduce vulnerability and increase transparency. In addition, transactions will not be controlled by a single intermediary.
Cannabis companies have an advantage over other companies trying to implement blockchain technology and have strict traceability requirements. Since the legal cannabis market is still relatively new, cannabis companies are more modern, making it easier to integrate a solution like a blockchain into their workflow.
These tend to be small businesses with a strong growth culture and less complex supply networks and structures.
Another obvious advantage of blockchain is that it is decentralized. Cannabis is a cash-only business, at least in the United States. This is because the product is still illegal at the federal level and in more than half of the states and territories in the United States.
Due to the risk of money being seized or lost without compensation, cannabis companies cannot use institutions insured by the Federal Deposit Insurance Corporation (FDIC). As a result, more and more legal cannabis transactions are being made using blockchain-backed cryptocurrency such as marijuana-specific cryptocurrency.
And to provide a very point-specific solution for both industries (blockchain and cannabis), the Tangi token is leading the way with a unique offering.
Tangi token allows to have a marijuana specific currency and gateway! Tangi Token is a blockchain-based digital payment system powered by the cannabis industry that aims to improve the shopping experience, overall satisfaction and customer engagement.
The Tangi Pay mobile phone app, the Tangi Pay POS and the Tangi Loyalty Rewards program are some of the linked parts of the Tangi ecosystem.
It is based on the Binance Smart Chain, a decentralized exchange with a professional trading platform that enables fast and secure transactions within the Tangi community.
Tangi Team also has an impressive track record in management and advisory roles: with the help of Charles Hoskinson, they have created a working peer-to-peer blockchain infrastructure. Charles is the founder of the ex-co-founder of Cardano and Ethereum.
Thanks to the great minds behind it, Tangi will truly be considered the one-stop-shop solution for cannabis-related transactions.