CBD and blockchain technology, while always present, have people curious for information and implementation in their own relative worlds. Surprisingly, they have similarities, despite their obvious differences. CBD and blockchain are relatively unknown territories for many of us, but they are steadily increasing in popularity. What happens when you mix these two? How can blockchain technology help the CBD industry spread its wings?
CBD is Gaining Momentum
At this moment, the CBD industry is exploding – one could even say it was blooming. (And the future looks pretty green.) Despite biased fears, doubts, and ambiguous laws, CBD product lines are expanding while research is starting to prove its numerous benefits. People are gravitating towards natural solutions, favoring organic products, and health supplements. Now we can enjoy various kinds of products – for example, CBD oils and tinctures, sweet and potent edibles, and even product lines for pets. The latest predictions say that by the year 2020, the CBD industry’s worth will grow to $22 billion. Expanding marijuana legalization is responsible for this massive market expansion.
Blockchain and CBD Relationship
There are certain parallels between these two worlds, and we can see there are new synapses created every day, cementing their relationship. For example, we can see a growing number of blockchain based healthcare applications intended to improve people’s lives. Savvy leaders in the blockchain movement see the long term marketplace potential for decentralization via blockchain. CBD B2B could be something absolutely innovative to the market. The blockchain business model could provide many benefits to the CBD industry, such as creating supply chains, providing better transparency, and since there is no third party involved, increased savings.
CBD and Blockchain Equals Better Transparency
Transparency is a trademark of blockchain technology. The complete chain is visible and recorded from the start. All businesses want privacy and security, but the harsh truth is that banks need to improve their privacy practices. In the last few years, we have witnessed various large scale data breaches where customers’ data was compromised. Utilizing blockchain techniques can help with building trust between customers and business partners. It can also assist when it comes to price forming; people would have better insights into pricing. Blockchain networks provide immutable transaction records, while also giving you valuable insights about the quality of CBD products and services. It could help create entire systems for buying or selling products. Also, there is the concept of smart contracts, which can help you get an extra dose of assurance and trust to your counterparts.
Linking the Suppliers, Creating the Chains
As we mentioned above, blockchain could help with harnessing all of the counterparts into one ecosystem – one unique business supply chain for the CBD industry. By creating a sort of business cluster, it can help to organize day-to-day business activities. When it comes to buying and selling, there are so many different elements in between each step. Blockchain can connect breeders, seeders, packagers, delivery services, and anything else that will be visible for all counterparts. It is of utmost importance for the CBD industry to have proof that you are selling 100% organic, USA homegrown hemp-derived products. By doing business this way, you will have evidence of high-quality products and an entire network of followers and business associates. You can also study marketing and data patterns that would lead to the creation of a valuable database that could be the foundation for this thriving industry.
Blockchain could be the spark that will start an entire revolution, and not just in the cannabis industry. We can already see some applications in businesses outside of the tech world like restaurants, real estate circles, and more. When you are operating your companies with blockchain, it means that there are no banks, credit card processors, or check transactions. The vendor saves on the cost of doing business, and the margins become wider.
For the cannabis industry, it means a new way to do business when they cannot do business with banks or through credit card services. It means saving money on those kinds of costs.
Soon, we will probably see more cryptopreneurs flocking to the CBD industry. We will see more products and more research on CBD, as well as more healthcare applications of both blockchain and CBD. Is this strange relationship an ideal one? Only time will tell, but we recommend digging into how these two unlikely worlds may collide.