This article by Kim Torres was originally published at SundayScaries.com on August 9, 2019. It is being republished here with the publisher’s permission through syndication.
While always present, blockchain technology and CBD have people wanting to know more about both and how they can implement them in their worlds. CBD and blockchain, surprisingly, have similarities, despite having obvious differences.
Blockchains and CBD are fairly unknown territories for most people, but they are increasing in popularity. So, what happens if you were to mix CBD and blockchain? How can the CBD industry benefit from blockchain technology?
The CBD industry is blooming – I mean, booming – and its future is looking green. Despite doubts, biased fears, and vague laws, products containing CBD are expanding because research is beginning to show its benefits. The use of cannabidiol (CBD) is an ancient one, but that doesn’t mean that the CBD boom that is happening right now can’t bring with it innovations and fresh new thinking regarding the product.
More local and online retailers are starting to sell CBD extract legally, as long as the dosage of the products are under 0.2 percent and doesn’t contain any of the mind-bending properties that cannabis is known for.
CBD is also expanding because more and more people want to use natural solutions, and they favor organic health products and products. With this expansion, we can enjoy a wider variety of products, including CBD tinctures and oils, delicious edibles, and even CBD products for pets.
While it can be hard to see from the eyes of a casual consumer, but the CBD industry is being shaped more and more by people from another field: cryptocurrencies. One group focuses on plant-based products, and the other focuses on decentralized digital ledgers; there are still plenty of synergies and similarities between entrepreneurs in these fields than you might know.
With this in mind, it’s not surprising that the same kind of people who are attracted to cryptocurrencies want to become involved in the CBD market. There has been rapid growth in the CBD industry, which means that more CBD companies are coming up every day. In both industries, companies have to find ways to differentiate themselves from competitors, so they stand out.
One of the many factors in the growth of this industry is the use of blockchain technology that is being used to bring growth and change to the CBD market.
The Relationship Between CBD and Blockchain
There are a few parallels between CBD and blockchain technology, and it’s possible to see the new synapses developed daily, which cements the relationship between the two. For instance, over the years, we have seen an increased number of blockchain-based applications in the healthcare industry that have been designed to improve people’s lives.
Leaders in the blockchain technology movement can see the long-term marketplace potential to use blockchain technology to decentralize their business. CBD business to business could be ground-breaking to the market.
The blockchain business model can provide plenty of benefits to the CBD industry, such as providing better transparency, designing supply chains, and, because there are no third parties involved, increased savings.
Blockchain and CBD Means Better Transparency
The trademark for blockchain technology is transparency: the entire chain is recorded and visible from the beginning. Every business wants security and privacy; however, the truth is that banks have a long way to go to protect their customer’s privacy. Over the years, we have seen plenty of scale data breaches where customer data was compromised.
By utilizing blockchain technology can help businesses build trust between business partners and customers. Blockchain can also help when it comes to deciding on prices; people would have better information when it comes to pricing. Blockchain can provide permanent transaction records, while also providing valuable information about the quality of CBD services and products – it could help create entire systems for selling or buying products.
Creating Chains: The Suppliers
As mentioned earlier, blockchain could help connect all of the counterparts of an ecosystem – a unique supply chain for the cannabis industry. By designing a business cluster, businesses would have help when creating a day-to-day business activity list. When it comes to selling and buying, there are so many different elements involved with each step.
Blockchain could help with connecting seeders, breeders, delivery services, packagers, and anything else that is visible for all counterparts. For the cannabis industry, it’s incredibly important to have proof that you’re selling USA homegrown hemp-derived products and 100 percent organic products.
By doing business with blockchain, you’ll have evidence of high-quality products and networks of business associates and followers. You can also study data patterns and marketing plans that would help lead companies to the creation of a valuable database that could be the foundation for the thriving CBD industry.
Blockchain could start the spark that would begin a revolution, and not just for the cannabis industry. It’s possible to see some applications in businesses outside of the tech world, for instance, real estate circles, restaurants, and more. When you operate a company using blockchain, it makes it so that there are no credit card processors, banks, or check transactions. The vendor who uses blockchain will save on the cost of doing business, and the margins can become wider.
For the CBD industry, blockchain means there’s a new way to do business when they can’t do business with banks or with credit card companies. It means that they will be able to save money on those kinds of costs.
The promising future of payment processing for the CBD industry lies with blockchain technology. This is because of the inherent benefits that one gets from using blockchain technology over traditional financial institutions.
Blockchain allows CBD businesses access to clear visibility of their transactions, with more efficient, cheaper, and independent payment methods, and a more integrated network with suppliers. Seeing as the CBD industry is relatively new, what better time to lay down the groundwork for utilizing fully digital payment methods?
More on this topic: Utilizing Blockchain Technology in the Cannabis Industry