Cannabis and Blockchain: let’s start from the basics

When I normally talk to people about cannabis, the first reaction they have is a suspicious glance to see what’s behind them. Most of them are scared that others may hear them talking about this “dangerous topic”.

Since a couple of years I have been deepening my knowledge about therapeutic applications of Cannabis. I have some friends of mine that are cultivating legal cannabis for fiber and structural purposes and I then discovered that the market is bigger than I expected.

Cannabis and Blockchain something to think about

Well, let’s start from the beginning. I guess everybody knows about the Cannabis recreational effect, which is responsible for a sort of demonization of this plant. For this purpose, Cannabis is usually smoked, losing the most part of active principles.

The industrial application for Hemp and its derivatives was the Ford Cannabis: in 1937 this prototype was finished, and the car structure was made by a material obtained from soy and hemp seeds. Fuel was hemp’s ethanol. To test its integrity and strength, Henry Ford hit the car with a hammer, with no harms caused to the chassis. It seems quite contemporary as a test, isn’t it?

Anyway, hemp has even other purposes: its fiber is still used for nautical ropes thanks to its low weight and high resistance to traction. Hemp fiber is also used for clothes production: it has been found that hemp clothes are among the best for their hypoallergenic quality.

Hemp fiber takes part also in the construction of fully sustainable houses, thanks to a mixture of hemp, lime and water. Lime calcifies, providing the necessary structural requirements to the house. No concrete to be produced for these houses, a great thermal insulation and just a small maintenance to keep fiber attached. No wastes produced to build these constructions.

Other great applications are for food and of course, therapeutic purposes. Hemp flour is great for celiacs and to reduce the amount of refined flour that we usually eat. Hemp seeds can be eaten in salads or in patties.

Several scientific studies have been also carried on water treatment potential of hemp and papyrus plant roots.

So why the Hemp and Cannabis Supply chain should be traced?

For therapeutical use, cannabis must be monitored and analyzed thoroughly: when seeds are planted, they must come from certificated and legally recognized sources. Keys parameters are THC (tetrahydrocannabidiol) and CBD (Cannabidiol). The first one has psychotropic effects while the second is considered without psychotropic side-effects.

Many diseases can get better with cannabis-based therapies: Doctors and Specialized Doctors can prescribe therapeutical cannabis. Only legally recognized Pharmacies can sell cannabis mixtures with a higher THC concentration than the legal allowance.

When you buy legal seeds, you cannot be totally sure about the final THC concentration, even if tolerance is allowed beyond legal limitations. Another variable may be the humidity of the mass: higher the humidity, lower the THC concentration. Standardization of measurements method are required.

Certification of the supply chain are also required: automatic measurements of the weather conditions, transportation time, quantities and chemical parameters are key elements that can ensure a higher quality and a better precision in cannabis lot certification.

If a farm certifies a certain quantity of cannabis leaving its fields, the market or other general suppliers are supposed to receive the same amount of material. From the suppliers, to stores and shops, quantities have still to fit initial amounts. A mobile application, for smartphone and other mobile devices should be deployed to synchronize storage data with the last stage of the supply chain: the retail sale.
The same certification procedure, or even a stricter one, should be followed by the medical cannabis, that has a higher added value and a higher drug-potential.

Why Blockchain may be suitable for cannabis traceability?

I wrote a few months ago an article about the value of Made in Italy in the world and how to certify it. Anyway, food has no medical or clinical purposes while cannabis has a lot. That is why a public Blockchain, would be the best solution in my opinion to trace cannabis and guarantee the quality of the product.

Some projects around the world are already involved in creating so, many of them are issuing their own coin. Certification of cannabis and an alternative payment method are the points with the main attention. Many banks are still refusing to provide bank accounts to Companies that are admittedly involved in the cannabis business, so Cryptocurrencies represent a good alternative way of payment to avoid bank restrictions.

What I like most, anyway, are the projects that are trying to develop a project for cannabis traceability through Blockchain without token emission. In this way, investors can contribute to the project via traditional Crowdfunding platforms and their investment is protected with an Equity Crowdfunding or a Debt Crowdfunding. In an ICO, the investor pays money to get tokens, but there are no warranties on the token value after its listing. If it will not have enough liquidity, price will likely drop down and selling the token may become hard and no profitable at all.

If you are interested in getting deeper in this topic, send some appreciation with a like on this article or a carrier pigeon and I will provide more insights on the topic.

See you soon!

Michele Zilocchi
Cryptocurrency and Blockchain Advisor at amicaborsa.com
Daily Cryptocurrency Trader
Business developer

See more articles by Michele here.

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