This past month the world’s largest cannabis company by revenue was formed with the merger of Tilray and Aphria, creating a US$4.6 billion market leader. This comes as the US moves closer towards a federally decriminalized cannabis policy, and the global legal cannabis market is targeted to reach US$90 billion by 2027.
However, as a fast-growing industry, cannabis is dealing with issues; supply chain, payment systems, traceability, quality control and transaction tracking. These challenges can create supply shortages, restrict product selection, increase consumer and government wariness, and combine to limit growth potential.
A key factor in government policy towards cannabis has been to establish a legalized environment that disrupts the illegal market. The ability to provide full trace history through the entire supply chain would importantly communicate the source, consistent product quality and safety that is required.
Against this backdrop, Blockchain technology is quickly emerging as a key partner in helping address these business issues. A 2019 PwC survey of supply chain leaders indicated that 37% of respondents are already piloting blockchain solutions, while 33% plan to do so over the next five years. Using blockchain to prove provenance clearly has the momentum and capacity to transform how cannabis companies operate and connect with customers.
For many cannabis companies building vertically integrated supply chains is a stated objective, but to achieve this is time consuming and expensive. In an environment where investors are looking for these companies to accelerate towards profitability this becomes a challenge. Blockchain solves this pain point, enabling the business with an operating system built on the functionality of traceability, timestamped and tamper proof records – recording the transaction and enabling the business to accurately track the product journey, from greenhouse or production facility to distribution points. This functionality also simplifies the process to meet the regulatory requirements that apply in a high-risk industry, allows them to pass audits, and develop trust within capital markets.
The unmatched scalability of Bitcoin SV, with large block size capacity and very low transaction costs allows cannabis companies to conduct these transactions at scale. TAAL recently processed a world record 638MB block on the BSV blockchain network, and its transaction processing tools are designed to meet demand with real-time transactions, unlimited transaction scalability, ultra-low transaction fees, and network security & industry compliance on the Blockchain. Importantly, the technology’s distributed ledgers can authenticate product and confirm that a transaction is legal and free from regulatory interference.
Integrating Blockchain technology also offers a big win for consumers who can be assured that their product is coming from licenced producers, and increases their confidence in the consistency, quality, and safety before making a purchase.
Medical cannabis is increasingly being accepted to treat patients with ailments and symptoms, including chronic pain, opioid dependency, nausea, sleep disturbances, and anxiety.
Here too, Blockchain has a transformative role to play. Pharmacists and medical practitioners, who are accustomed to prescribing medications with standardized active ingredients can benefit as Blockchain enables immutable and rapid access to data, ensures ingredient traceability, information on product compounds and trusted access to research trials.
Through TAAL partner nChain, EHR Data is empowering patients to safely own and share their health and wellness information globally to healthcare providers. This is helping create greater accountability amidst a fractured healthcare record system, and also serves to highlight the trust and immutability offered by the BSV Blockchain, which is critical when medical records and private personal data are involved.
The technology’s decentralized applications help patients store medical information and uses smart contracts for frictionless cannabis transactions. Implementing the technology increases patient confidence and allows for doctors and health practitioners to better focus on patient care.
Every business and industry must succeed on trust, and cannabis is no different. In fact, as an emerging market with an illicit trading history it can be argued that cannabis must work harder to create confidence among regulators, investors, doctors, patients, and consumers. Blockchain automates the industry’s pain points of cost-effective quality, traceability, and tracking. For enterprise and cannabis companies, Blockchain technology is arguably the future of trust.
To discover how TAAL Blockchain solutions can help cannabis companies achieve their full potential contact: [email protected]