‘Blockchain’ and cryptocurrencies in the cannabis industry
Over recent years, the onset of legalisation in different countries has helped the cannabis industry take off, producing an explosion of weed-related companies, some of which have even gone public on the stock market.
The cannabis stocks being traded on these exchanges bear a striking resemblance to cryptocurrencies, as both are part of new and emerging industries that are still working towards normative regulation at all levels. And like cryptocurrencies, these stocks are experiencing high volatility as a result of the market still not understanding how to value these assets.
But at the same time, they hold a special attraction for small investors due to their ease of use and access. However, beyond cryptocurrencies, the true potential for the cannabis sector lies in blockchain, which is the underlying technology behind cryptocurrencies and a concept That could truly elevate the cannabis industry to a new high. a new level of transparency and security like never before seen.
Cannabis and blockchain, two concepts that are meant to be understood.
Two emerging sectors operating in a twilight zone
Cannabis has long been declared an illegal substance, so the absence of regulation has made it difficult for many cannabis-related businesses to legally establish themselves in the proper way. However, laws and regulations are beginning to loosen up as governments recognise that the revenue potential of taxing cannabis use is far greater than anything gained by criminalising it.
Cryptocurrencies have also passed through a similar grey area, with many governments linking its use to money laundering, tax evasion, terrorist financing, and illegal drugs. These claims may have had some validity in the early days of blockchain but, in recent years, technology has evolved enough to offer viable solutions to problems related to banking, loans, logistics, as well as a wide range of social, financial, and economic challenges.
In fact, the word blockchain has been the talk of the tech industry since it emerged as a solution for securely tracking and tracing the exchange of cryptocurrencies. Conceived as a decentralised digital transaction ledger that is duplicated and distributed to every computer on a network, blockchain creates an unbreakable cryptographic signature called a hash that stores data in a way that cannot be disguised or manipulated, thus creating perfectly traceable records of all data interactions of a project throughout its life expectancy.
In this way, a blockchain can track anything from the sale and ownership of a few gold coins to the entire life cycle of a cannabis plant, from seed to final product in the form of flowers in a user’s pocket. Everyone involved in the project has full visibility of an immutable and transparent account detailing every change, no matter how small, that the asset has undergone.
A blockchain is a data structure whose information is grouped into sets (blocks) to which meta-information about another block of the previous chain is added in a timeline
Governments around the world are slowly beginning to recognise the potential of blockchain technology to create more transparent and open systems and reduce red tape. Also, the large cryptocurrency exchanges that opted for ease of use to win over new users are now working towards addressing these concerns and achieving regulatory clarity for the entire crypto space.
Exploring blockchain use in the cannabis market
As we’ve already mentioned, blockchain can offer you all and any information regarding the life of a product, including its efficacy studies and consumer feedback; and all that in a system that can make it easily accessible to the various relevant parties that need to access it securely at any time. In the supply chain, it can bring much-needed integrity to this industry, something that could be critical to its mass popularisation.
The following are some of the ways blockchain-powered technology is already benefiting cannabis companies:
Fast and real-time traceability
Blockchain technology guarantees a permanent and accurate record, but also allows fast access to specific details within the large amounts of stored information. Companies can instantly see the complete history of a specific product and access current and past locations in the supply chain, from production centres to distribution points, preventing fraud or theft and locating any potential problems.
Blockchain technology enables traceability of the entire cannabis supply chain from the moment the plant germinates until it goes up in smoke.
Providing consumers with an X-ray of the supply chain works to the benefit of brand owners, enabling them to build up consumer confidence in the consistency, quality, and safety of legal cannabis, thus reclaiming some of their business from the black market.
Blockchain is fundamentally based on transparency, and that’s what the cannabis industry needs to overcome decades of obscurantism.
Monitoring the production process
just like pharmaceutical and biotech companies, cannabis producers must follow strict growing and processing guidelines to ensure safety and quality. There are problems with the control of pesticide use, the accuracy of nutrient solutions, storage temperatures, or hygiene measures that have to be adhered to.
For example, the manager and cultivation staff of a cannabis farm would verify and record on the blockchain the nutrient dosage or the amount of pesticide used; and blockchain will validate the processes as they occur so that plant care is supervised throughout all stages of its life cycle to verify the results and the authenticity of the product.
Greater efficiency and cost reduction
Labour remains one of the biggest expenses for cannabis companies, whether they operate grow facilities, retail stores, or both. Blockchain can streamline such time-consuming tasks as monitoring, reporting and audits, ultimately reducing the need for staffing and oversight related to those functions. Obviously, the start-up costs will be there, but in the long run, companies are likely to save money in this way.
Blockchain can increase the income of the cannabis industry and solve many of its problems.
Product validation and standardisation
One of the biggest potentials for this decentralised and distributed ledger that is the blockchain, in relation to cannabis, lies in genetics. Cannabis has long been identified by genetic crosses whose origin is not always entirely clear, as well as by strain names drawn from popular culture. Under blockchain-powered programs, information about genetic selection is collected, recorded, tested, and published through the secure and permanent infrastructure provided by the blockchain.
Thus, producers can protect their intellectual property while researchers can identify specific genetic and chemical profiles. Suppliers and retailers are guaranteed to receive consistent products with verifiable provenance, test results and other immutable information.
Efficiency in compliance with standards
For producers linked to the monitoring systems required by each countries’ authorities, the power of blockchain lies in the compliance and application of the regulations. With blockchain, human error and the capacity for fraud are eliminated, completely removing any fear that a state or regulatory body may have that something has not been reported correctly. Being able to provide hard evidence of full compliance is a great advantage.
For example, a government can track cannabis provenance information by embedding a QR code in an item. The data is authenticated by placing it on the blockchain network and this information will determine if the seller has the legal right to sell these products and will also hold him responsible for any actions he takes, helping to halt any illegal cannabis use.
Consumer confidence: transparency, security, and authenticity
Scannable codes powered by blockchain and other blockchain-related technologies can increase transparency and provide end consumers with secure and verified product identification and information, to build trust and brand loyalty.
With blockchain, the consumer can be shown how one product is superior to another without having to deal with claims of bias or inaccuracies. It is very important from a consumer point of view to know exactly what they are buying and how they are getting it.
The volatility of cryptocurrencies, a love-hate relationship?
Cannabis and cryptocurrencies can also be good bedfellows
Beyond the significant advantages that the blockchain offers, cryptocurrency and cannabis businesses also have a lot in common. Both are currently entering the collective consciousness after years of operating in the shadows, and the two industries can help each other.
If cannabis companies embrace digital payments and get involved in resolving the problems created by these alternative systems, they can pave the way for other companies to do the same. Cryptocurrencies can help the cannabis industry access the financial services it needs and become less reliant on cash.
In fact, many see these tokens as a possible solution to the cannabis industry-wide banking problem faced in the US, which stems from the outdated status of DEA Annex I that classifies marijuana as a controlled substance, making it impossible for an entire industry to access banking institutions, essentially forcing cannabis companies to operate outside of secure financial systems.
It is not easy to do business when you cannot accept credit card payments and you are denied access to other services such as loans. This situation forces many cannabis companies to rely heavily on cash. And cash is far from ideal.
Cryptocurrencies offer a solution to this, as cryptocurrency exchange services are not regulated in the same way as banks, therefore it is much easier for companies to open accounts with them.
A decentralized exchange (DEX) is a digital asset exchange platform that works without the involvement of a central authority
Sadly, the relationship between cryptocurrencies and cannabis is still in its infancy today, but it is highly likely to develop and flourish in the near future as levels of cryptocurrency adoption increase and technology becomes more sophisticated.
The most established cannabis cryptocurrencies
Bitcoin is the main cryptocurrency that popularly dominates the virtual space. However, there are alternative cryptocurrencies launched with an view to the cannabis industry and offering specific transactions for this sector.
When looking at these cryptocurrencies, one of the most well-established is BitCanna Coin (BCNA). BitCanna is a decentralized blockchain network created specifically for the cannabis industry, involving some of the most important cannabis companies and seed banks in Europe, with an impressive list of partners and suppliers that includes companies such as Alchimia, Barney’s Farm and Royal Queen Seeds. Together, they form the BitCanna Alliance project, whose mission is to address the mass adoption and transparency of blockchain in the cannabis industry, providing a decentralised payment network, supply chain, and a network of trust for this sector.
To this end, BitCanna allows easy instant payments with minimal commissions (the transaction fees on the BitCanna blockchain itself are 0.0001 BCNA – approximately €0.00001 at the current market rate), which means that BitCanna can be used to pay in hundreds of online stores. The BitCanna mobile app uses a simple QR code payment system that combines the ease and convenience of shopping with a credit card with the unsurpassed privacy and security of cryptocurrencies. BitCanna offers the benefits of both, without any of the drawbacks. This means that making a purchase with BitCanna is as simple as it is completely anonymous: no information about the purchased products can be accessed by anyone else.
BitCanna is working hard to become the solution that the cannabis industry desperately needs.
PotCoin or POT is another alternative currency launched in 2014 and which is also one of the most widely used in the sector; This cryptocurrency experienced a huge pump and subsequent dump after Dennis Rodman wore a POT jersey in his now-infamous 2018 reunion with North Korean leader Kim Jong-un. While the shirt, like the meeting itself, caused an international sensation, this kind of look is never healthy for a financial instrument intended for use as a long-term method of exchange. It now occupies a discreet position, #1135 on CoinMarketCap, a reference website that analyses the capitalisation of these digital assets.
Another one is CannabisCoin or CANN, also launched in 2014 and which operates to help companies carry out transactions with medical marijuana within North American dispensaries. This marijuana-based cryptocurrency also uses digital wallets to manage and store coins.
Another well-placed cryptocurrency is HempCoin (THC) which provides funding for the agricultural hemp industry and the use of medical or recreational cannabis in dispensaries. The purchase of tools and equipment for growing hemp can be done through the HempCoin website using this cryptocurrency.
For its part, the mission of DopeCoin or DOPE is mainly to allow cannabis users to set up their businesses in a safer way. Based on its website, DOPE users can make transactions for free and pseudo-anonymously.
You also have CannaCoin or CNN, which operates under Peer2Peer (P2P) technology, which is a decentralised blockchain that works to develop future crypto applications in relation to the production, processing of biomass and other cannabis-related businesses.
PotCoin was the first cryptocurrency designed to provide financial services to the cannabis industry
And there are several more besides. However, the main issues these cannabis tokens encounter are adoption, market capitalisation, and targeting. Instead of bringing new technology together with innovative proposals, these ‘cannabis cryptos’ fail to address the problem the industry is facing, thus reducing their potential reach in the market.
This is because it is not enough that they are publicly related to cannabis. The problem lies in the fact that these cryptocurrencies are no different from any other cryptocurrencies. Therefore, most companies would prefer to use ETH, BTC, BNB, USDT, or any of the other dozens of major tokens that have been in development for years. In fact, it would be unwise for a cannabis company to rely on any of these existing cannabis cryptocurrencies without going through the more mature cryptocurrencies first.
Cannabis connection with small investors
Cryptocurrencies represent a new kind of digital money that users can store and transfer as if they were their own bank. Small investors are attracted to cryptocurrencies because they are relatively simple to understand, easy to access, and they allow them the freedom to spend and make transacttions without having to deal with the usual intermediaries who waste time and charge excessive fees.
However, cannabis stocks and cryptocurrencies are two types of assets belonging to emerging industries that are highly volatile, working towards regulated compliance, and are ubiquitous and easily accessible to small investors. These three factors make cannabis stocks and cryptocurrencies potentially very profitable to trade and invest in, but also very risky and unsafe compared to traditional stocks or bonds.
As these industries grow and mature, their volatility will eventually subside, meaning that more mainstream investment funds will welcome them into their portfolio. Until then, if you want to enter this world, this is the best recommendation: always proceed with caution, with money that you are not afraid of losing, and learn everything you can about where the short, medium and long term value is within each stock or cryptocurrency asset you own.
And remember the most important thing: it is the supply chain transparency offered by blockchain that will really benefit users in the legal cannabis industry. This will increase consumer confidence, which will undoubtedly lead to more people moving from the illegal to the legal market. As long as people can see the exact journey from seed to sale, the quality, safety and consistency of legal cannabis will speak for itself.
Marijuana Seed Banks that take Bitcoin in 2022
With the growing popularity of bitcoin, many cannabis seed banks have started accepting bitcoin payments.
Now you can use the world’s most precious and versatile cryptocurrency to buy high-quality weed seeds and other products from the biggest and most secured seed banks in the market.
Learn more about this excellent alternative to a conventional currency here in the following article and get on-board with the digital money revolution. Also, explore the list of seed banks accepting bitcoin for cannabis seeds.
In simple words, bitcoin is a kind of currency that is easy to manage, decentralized, and secure.
It’s an open-source plan which has been gaining popularity around the globe in recent times. Bitcoin works on a peer-to-peer (person-to-person) interface, and you can use it across many gadgets like phones, tablets, and PCs.
You’ll be amazed to know that it is not regulated by a single organization, group, government, or ban k. This means you can transfer and receive bitcoin anonymously. You can use this currency for free. It has minimum transactional charges, unlike most other currencies.
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Buy Cannabis Seeds with Bitcoin
Online cannabis seed banks always strive to make their customers’ shopping experience a lot easier and more convenient. That’s why many reputable seed banks have started accepting bitcoin payments for those who want to keep their identity anonymous.
Just as with all other payment systems, anyone can use bitcoin to buy any of the products available across the entire menu. Bitcoins have been known globally for their unique services over and above standard currency in all its forms.
Especially when it comes to potentially controversial investments, bitcoins match the new global pattern for safe and secure purchases at every level.
If you are looking for some other payment method, we have also covered seed banks that accept PayPal payment methods.
List of Seed Banks Accepting Bitcoin
Not only that, there are numerous other cannabis sellers on the internet that accept bitcoin and other cryptocurrencies for cannabis-related products. Let’s take a deeper dive into the digital currency world for those who haven’t heard about bitcoin!
What Is Bitcoin?
For those who still follow the old-fashioned pattern, it’s time to change! Bitcoin is a decentralized digital currency used for all sorts of online transactions, from new pairs of clothes to motorized vehicles.
What makes Bitcoin unique is that it’s indistinguishable, self-regulated, and most importantly, it’s hard to track. Hence, you see so much negative news and statements about it as the government and the banks don’t like something they can’t regulate.
The blockchain is a shared public record on which the whole Bitcoin network relies. It is a method of recording information that makes it hard or impossible to modify, hack, or trick the system.
You can keep your balance in control through this, and the bitcoin wallet can easily confirm the newer activities. There is the presence of cryptography where the sequential order and the integrity of the blockchain are being inflicted. This indicates that you have better records if you are going to buy cannabis with bitcoin.
How to Buy Bitcoin and Pay for Your Cannabis Order?
1.Create Wallet and Buy Bitcoins
Make a Bitcoin wallet where you can securely save bitcoins.
a) Add Payment Mode (Credit/Debit/Bank Ac).
b) Purchase Bitcoins.
2. Order From Your Preferred Seed Bank
a) Select the Pay by Bitcoin option and proceed to Checkout.
b) Copy Bitcoin Address & Amount .
3. Pay the Seed Bank with Bitcoins
Transfer Bitcoins from your wallet to the account your seed bank has provided.
a) Send Bitcoin . Use Bitcoin Address & Amount given earlier in step 2.
When you transfer bitcoins from your wallet address, the amount gets deducted from the wallet. Let’s take an example and say you would like to buy cannabis seeds with bitcoins from the ILGM seed bank. Please remember that you only have 15 minutes to pay the Bitcoin invoice before the session expires – if it expires, you will have to either make a new order or get in touch with the seed bank so they can handle the payment immediately.
Is It Safe to Buy With Bitcoin?
Since bitcoin is safe and you’re buying with it doesn’t mean that the person you’re paying would keep your data secure as bitcoin does.
If you are concerned about traceability, we’d highly suggest you only buy from a legitimate source. After all, you never really know who will be accepting these unidentified bitcoins and what they might do with your data? Maybe they’re adding it to some list?
You also have to think about whether or not the company will send what you’re looking for. Don’t spend huge amounts of bitcoin without making extra sure the seller isn’t going to take your cash and run. Unlike credit and debit card payments, bitcoin transactions are irrevocable, and there is no security if anything goes wrong.
There are many approaches to tell if a seed bank is legit or not. Still, in experts’ opinion, the best way to learn about any retailer’s legitimacy is to look for reviews or testimonials.
Advantages of Buying Cannabis With Bitcoin
Bitcoins could give the cannabis industry an easy-to-use alternative to cash, and marijuana could provide bitcoins with public interest so they can say goodbye to old-fashioned schemes. As bitcoins are decentralized and open networks, any one organization or nation can not regulate them. That means nobody can advise you what you can buy or who you can take it from.
And, you won’t need to ask your bank to get approval to spend your own funds in a foreign state when you order marijuana seeds with bitcoins. Here’s the explanation why marijuana and bitcoins are a perfect match:
Keeping Your Identity Anonymous
If you don’t want your bank or any other person snooping around in your game, bitcoins are an excellent option. Bitcoin purchases are connected to the wallets they pass through. As long as you don’t link your wallet to your real identity, payments stay pretty much hidden.
Bitcoin wallets are free of cost, so you can make a new wallet with every purchase if you feel suspicious.
The Bitcoin Network is Reliable and Secure
Like any other currency, you need to be careful while keeping your bitcoins, but you don’t need to bother revealing your identity or credit card deception while using cryptocurrency. As long as your wallet is safe, it’s nearly impossible for anyone to withdraw your bitcoins. They’re uniquely encoded, and most wallets ask for a 2-stage authentication to transfer the currency.
For most advanced security, save your bitcoins in different wallets, including one that is equipment-based.
Earn Rewards By Paying Through Bitcoins
Whether you’re purchasing a cured bud that is ready to burn or weed seeds with bitcoins, you can save big!
A new San Francisco company named Trees will offer you 40% off ordering your joint by their services. Moreover, many seed banks offer free seeds when you pay using cryptocurrency.
Faster and Cheaper International Transactions
When you pay your order with bitcoins, the network imposes a small transaction price, and the recipient can check the money in their bitcoin wallet within seconds. Credit card payments are fast, too, unless the client triggers an exaction caution or you’re not pre-authorized for foreign transactions.
Transaction costs differ from nothing to 10% of your charge if you go through a system your card company doesn’t care for, and there’s no practical way to know before you buy.
Transferring money or doing a bank transfer for a global order can be slow and expensive, too. International bank payments sometimes require an in-person visit to a regional office, and charges can exceed $40. This method may take a while, from a few hours to numerous days, for your payment to show up.
With cash, you’ll have no proof of when or IF it will show up except you pay for the extra charges for identifiable foreign mail.
Marijuana Could Make Bitcoins More Accessible
More and more people would start using bitcoins if they were easier to buy. You can purchase them on websites like Coinbase, Localbitcoins, and Circle, and the unique Bitcoin ATMs promise to make it very easy to top off your wallet.
So far, there are two segments where you’re most likely to see a bitcoin ATM. One is in bigger cities with many educated citizens and in countries that have approved cannabis.
Many, but not all, cannabis dispensaries allow bitcoin ATMs in these provinces. As legalization spreads and more weed shops open, it could bring new possibilities for more bitcoin ATMs. Additionally, this could bring more opportunities for people to access bitcoins.
Cash still governs the cannabis business, whether it’s legal or not in a particular region. However, bitcoins may present a safer alternative than online and offline transactions in the not-so-distant future.
Disadvantages of Buying Cannabis With Bitcoin
No Cashbacks or Refunds
Probably one of the biggest downsides of bitcoin is a lack of a regulated policy for cash backs or returns, as all credit card companies and popular online payment processors have.
Users affected by transaction distortion – for example, buying products that the seller never delivers – can’t ask for a refund through bitcoin.
In fact, the decentralized structure of bitcoin makes it difficult for any single party to negotiate disputes between users. While miners take charge of recording transactions, they’re not able to evaluate their legitimacy.
Cryptocurrency is technology-based, which indicates that this system is open to cyberattacks. Hacking is a serious risk since there is no genuine way to retrieve your lost or stolen bitcoins.
Several reports confirm that many buyers lose their finances in exchanges and mining losses. Markets are more likely to be hacked – even if you have the security of a smart wallet.
Moreover, if you have a wallet and forget or lose your unique key, there is hardly a way to recover your bitcoins. Carefully check your cryptocurrency wallets to make sure you have the most secure option.
In addition to hacking, there is a common threat of corruption in the bitcoin market. Consumers and sellers tend to transfer bitcoins online. But some of these mediums can be deceitful since their surge in popularity.
The Securities and Exchange Commission (SEC) and the Consumer Finance Protection Bureau (CFPB) have warned against these activities where inexperienced investors are tricked out of their bitcoins in bogus exchanges.
This absence of protection forms a big risk for investors. While policies have been made to deal with these issues, safety remains a big issue.
If you’re a little nervous about ordering weed seeds online and looking for a certain level of secrecy, you can buy from the seed banks that we mentioned above using bitcoin.
Since there is a legal acquisition problem as federal regulation prohibits the companies from having a bank account, bitcoin turned into the best solution to buy weed online. What’s more, you don’t need to have a bank account to buy cannabis online.
Not only does bitcoin give you anonymity quite often, but the sellers are also pleased to offer hefty discounts and promotions to the customers who pay using bitcoins. This way, you can redeem the transaction cost as well. Moreover, getting free seeds will make you more excited!
Thus, you will have a convenient and anonymous online payment when you buy cannabis seeds with bitcoin.