Challenges faced by the cannabis industry
Flawed supply chains
Under-regulated, relatively young and facing competition from illegal enterprises, cannabis businesses struggle to establish verifiable supply chains and to promptly and accurately detect fraud and counterfeiting.
Immense taxation when purchasing marijuana products remains a part of the legalization deal. Washington state currently collects 37% on cannabis sales; ITEP even recommends governments shift to per-weight taxation to combat falling tax revenues.
Despite partial or full legalization in some jurisdictions, MarketInsider reports that its production and distribution are still mostly unregulated, with roughly 90% of all marijuana sales made illegally.
Cannabis businesses face difficulty getting credit and finance. Under 3% of US banks are willing to provide financial services to cannabis businesses, according to MarijuanaBreak.
Complex value transfers
In traditional practices, value transfers — data, assets, and other items — require the presence of intermediaries, which makes these processes slow and inefficient.
Legislatures that approved cannabis and marijuana sale require complete record-keeping of supply chains, from planting to distribution.
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Blockchain solutions for cannabis from Aetsoft
Fast and secure payments
With decentralized blockchain-enabled assets, cannabis-related businesses can perform transactions in a fast and secure manner, without using regulated means of payment.
For regulators having difficulty tracking illegal cannabis turnover, blockchain can become a panacea by allowing them to completely trace good’s transportation and money flows.
Make all sales verifiable and share data with all participants, helping to eliminate fraud and track purchases.
Smart contracts bring autonomy to financial processes, free of third-party involvement, making value transfers direct and less costly.
Traceable supply chains include data on all parties — farmers, growers, dispensaries, retailers — where any negative behavior will be immediately spotted.
Consistent breeding records
Blockchain can provide a single, transparent, and permanent database where companies could file info about weed and marijuana species, including growth, harvesting, THC/CBD balance, sales and reviews data.
Overhauling cannabis procedures with blockchain
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