Blockchain technology is a public, decentralized ledger where verified information cannot be deleted. Each ‘block’ of information is added to the chain in chronological order without the need of central record-keeping. It offers a variety solutions to the current challenges in the cannabis industry, particularly in the United States, where cannabis is legal in some states but not federally, said Daniel Cheine, co-founder and account manager at CannaSOS.
“Many business just can’t work with banks, and so they’re looking for different payment solutions,” he said. “The main way you can get around that is through blockchain technology because not only is it quick, but at the same time it is a universal platform."
Cannabis companies across North America have already adopted blockchain. Here's how they're using it:
Many cannabis businesses operating in legal states can only accept cash because of the banking challenges, which puts company revenue at the risk of been stolen or seized. PotCoin provides a decentralized banking infrastructure to the underserved legal marijuana market. By accepting PotCoin as payment, companies can easily transfer funds from customer’s digital wallets into the companies wallet, keeping both the customer and the company safe. Other advantages include low fees and avoiding exchange rates.
Smoke, and get paid. Repeat. Smoke.Network is a cannabis social network that rewards users with their cryptocurrency, SMOKE coins, for creating and curating original, cannabis-related content. The decentralized application will allow data to be stored safely on chain, allowing users to avoid censorship and reap the benefits of sharing great content. SMOKE coins can be stored in an onsite wallet or transferred away from the site.
This social network helps users locate retailers, explore marijuana strains and discover products. CannaSOS allows users to post reviews and articles, answer questions and more to earn PerksCoins Reward Points that can be converted to PerksCoin. PerksCoins can be withdrawn into all major international currencies or used on the site for other purposes such as advertising.
The company is also taking PerksCoin and creating a decentralized network that will allow all businesses in all industries — including the cannabis industry — to use it for transactional and loyalty purposes; with the platform including zero-fee instant transactions, an escrow service, recoverable wallets and more.
Paragon is working to help legitimize and enhance transparency and regulatory solutions in the cannabis industry by creating an immutable ledger for industry-related data, organizing global legalization efforts through ParagonOnline and more.
They’ll also have their own social network of cannabis startups, and will even have a coworking space with an in-house lab. How will you pay for the space? With their token, ParagonCoin, of course!