What opportunities and challenges await those bringing together cannabis and the blockchain?

Have you ever wondered what the potential could be when combining the best things about the burgeoning cannabis industry and blockchain technology?

Countries, cannabis consulting companies, and entrepreneurs alike are certainly beginning to give serious thought to the possibilities, as some states even look to legalise cannabis as a recreational drug, instead of simply reserving its use for medicine.

To begin to flesh out the details of what the blockchain could do for the cannabis sector and vice versa, it may interest you to read the words of Eric Benz, a contributor to CannaDAO, a project that is seeking to create a blockchain-based platform for the cannabis industry.

An increasing sense of cannabis businesses being at a “tipping point”

The focus of CannaDAO is on the creation of an ecosystem of opportunity for the cannabis industry, as realised by drawing upon the potential of tokenisation and a permission-less, decentralised and on-chain platform under the governance of members.

Mr Benz recently spoke to the Moneycontrol website about how greater opportunities could open up for both individuals and businesses across the world as a consequence of the legalisation of the cannabis industry. He added that such moves could also pave the way for other plant medicines and treatments.

“Cannabis has been misrepresented in the media and across the industry for more than a century,” he told the website, continuing: “As a result, the perception and understanding have been completely misguided. The industry has gone through an incredible maturation process, and the world is beginning to wake up to wonderful benefits this plant provides.

“The industry is at a tipping point and it is bursting at the seams, waiting for regulation to open up to take full advantage. Once more bans are lifted, it will begin putting cannabis in a new light and showcase the benefits and opportunities whilst redefining how cannabis is represented in media and by governments.”

The role that the blockchain could have in cannabis regulation

Mr Benz said that while the current cannabis sector was already “extremely regulated”, there was now a need to “adapt that regulatory framework to a Web3 world we now live in.” He said that this would allow technology and the community to help the cannabis industry to advance.

On blockchain tech specifically, he stated: “The great thing about blockchain is that it provides true auditability and accountability, acting as an immutable source of truth and an irrevocable database of information, which is there forever and for always.

“We still have a way to go before getting governments on board with cannabis, but by leveraging technology, we can redefine how this industry is represented and how we can provide access to anyone in the world.”

He expressed his hope that CannaDAO would play its part as a “decentralised investment vehicle run by the community to disrupt a trillion-dollar industry.”

Citing the problems that growers had around the world in attempting to get financing from banks and other financial institutions – a situation he blamed in large part on “the misguided regulatory frameworks” of the last few decades – Mr Benz said: “With the industry growing at such an unprecedented level, it’s time to solve the problem whilst leveraging technology and community.”

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