Current social trends seem to indicate that in the immediate future cannabis will once again become legal and marketable almost everywhere in the world, as it had been since the beginning of mankind until the twentieth century. With the decriminalization of its consumption, authorities must now consider ways to regulate it. The possibility of using blockchain and cryptocurrencies to register the sale and marketing of cannabis has emerged as a strong candidate for its security and transparency.
What is Blockchain?
In simplified form, the Blockchain is a system for recording transactions. Unlike a normal bank record, which is unique and exists in a single institution or location, the blockchain is made up of many copies of the same record. These identical copies are stored on multiple computers around the world and are updated simultaneously with each transaction. This makes altering the registry or attacking it nearly impossible, as all existing registries would have to be attacked at once.
In addition to the advantage of extra security, the blockchain is not managed by any centralized entity. So there is no bank or government that has direct access to the registry and can manipulate it or freeze transactions or dispose of users' money. Users can see all the transactions that have been made in the history of the blockchain, but no one can alter them, making it a transparent and secure system.
Cannabis should be a highly regulated product, and traceability (the ability to trace a product back to its point of origin) is a fundamental requirement in many legal markets. Blockchain technology makes it possible to create an immutable and transparent record of every stage of the cannabis production and distribution process, from the planting of seeds to the sale to the end consumer. Each transaction, such as cultivation, harvesting, processing and sale, can be recorded in a block of data on the blockchain, providing a complete and verifiable history of each batch of cannabis. This is especially important to ensure product quality and safety, as well as to prevent black market and underage access.
Product authenticity and quality
Blockchain can also be used to ensure the authenticity and quality of cannabis products. By using unique labels or codes on cannabis products, consumers can track the origin of the product, know its exact content of cannabinoids, terpenes and other compounds, as well as verify its authenticity and the absence of unwanted contaminants. This gives consumers confidence in the products they are buying and consuming, while allowing regulators to conduct audits and enforce current regulations.
The cannabis industry has faced financial challenges due to the lack of access to traditional banking services. This is where blockchain-based cryptocurrencies can play an important role. By using cryptocurrencies, financial transactions within the cannabis industry can be conducted securely and efficiently, avoiding the restrictions and problems associated with traditional banking services. Cryptocurrencies also allow for faster and more transparent transactions, as well as the elimination of additional intermediaries.
The world of cannabis and blockchain technology have been experiencing significant growth in recent years. Soon, cities like our Barcelona will become true epicenters of innovation in this field. Barcelona has long been recognized for its progressive approach to cannabis, and praised for the quality of its weed and its cannabis associations and weed clubs.
Although Spain and Catalonia still do not allow the legal commercialization of cannabis, and for now we are only allowed to grow and consume our own cannabis at home or in cannabis clubs, perhaps it is only a matter of time before the laws evolve and give way to a completely legal and transparent market.