November 20th, 2018
The cannabis industry is experiencing massive growth, but the infrastructure behind the boom leaves a lot to be desired. Many cultivators are still using spreadsheets to track products across the supply chain, while regulators are struggling to find good ways to track products from seed to sale. The good news is that several companies are stepping up with innovative solutions that could bring transparency and security to the industry.
BLOCKStrain Technology Corp. (CSE: DNAX) (OTC Pink: BKKSF) Chief Technology Officer Tommy Stephenson recently sat down with CFN Media to discuss the company’s decades of experience with technology and how it could transform the supply chain.
Emerging Market without a Solution
The North American cannabis industry is projected to reach nearly $100 billion in annual revenue by 2026, according to Research and Markets, driven by the legalization of medical and adult-use cannabis across a growing number of states and nationwide in Canada. While these trends are positive for the overall industry, companies are facing a growing number of challenges as production ramps up to meet consumer demand.
For example, most cultivators and dispensaries have been forced to repurpose existing software solutions to comply with heavy seed-to-sale regulations. Many cultivators are still required to submit data on a government portal or track transactions on a spreadsheet. These approaches are prone to data loss, data theft, and a host of other problems, while it’s difficult for governments to parse through the data to find information they need.
Another challenge is providing consumers with a good way to find information about cannabis products. The customer currently has no way of verifying if a product is what the store says it is, or even if that product is safe. Consumers currently have no access to testing data, and even if they did, they have no way of knowing if that data is valid.
For example, a recent study (https://www.cbc.ca/news/thenational/ormiston-pot-marijuana-cannabis-weed-genetics-1.4489974 ) discovered that in 35 percent of 81 different strains tested, the genetics did not match the strain that was being sold. In fact, some consumers were buying Sativa strains advertised as Indica, and Indica strains advertised as Sativa.
So, how do consumers really know what they’re getting?
These trust issues have become especially important following a string of product safety recalls in Canada and CBD efficacy warnings from the Food and Drug Administration in the United States.
Bringing Decades of Experience
BLOCKStrain Technology Corp. (CSE: DNAX) (OTC Pink: BKKSF) recognized the technology gap several years ago and began developing an innovative blockchain-powered solution. Unlike conventional database solutions, blockchain technology makes it easy to create a highly secure, highly scalable, and immutable record that can support billions of data points—whether they’re transactions, strains, or tests.
The company’s innovative platform enables cultivators to catalog various strains and protect their intellectual property, while empowering consumers to get granular about the products that they consume. Government officials can also quickly trace any transactions or strains without worrying about the security or scalability of conventional database solutions. The result is a win-win-win for cultivators, consumers, and regulators.
Since its launch, the company has already attracted world-class partners. WeedMD Inc. (TSX-V: WMD) (OTC: WDDMF), an Ontario-based ACMPR licensed producer of cannabis in Canada, announced a strategic investment in BLOCKStrain and became the first licensed producer to integrate blockchain technology into its ecosystem. National Green Biomed Ltd. also signed a letter of intent in June to join the platform.
BLOCKStrain Technology Corp. (CSE: DNAX) (OTC Pink: BKKSF) represents a compelling investment opportunity within the burgeoning cannabis industry. By creating the first blockchain-powered supply chain solution, the company hopes to position its platform as a central intermediary within the industry. The recent addition of licensed producers could help create some network effects to turn this goal into a reality.
In addition to cataloging strains and recording transactions, the company’s platform is becoming a valuable source of information. Consumers can use BLOCKStrain to rate products and share their opinions as part of an immutable record. This data could be mined to come up with insights into what types of cannabinoid and terpene profiles work best for certain medical conditions or recreational goals over the coming years.
Finally, the company could leverage the same technology in other industries that require secure, scalable, and immutable records, such as the organic food industry. These markets could become an additional area of focus down the road.
For more information, visit the company’s website at www.blockstrain.io.
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
MJShareholders.com is the largest dedicated financial network and leading corporate communications firm serving the legal cannabis industry. Our network aims to connect public marijuana companies with these focused cannabis audiences across the US and Canada that are critical for growth: Short and long term cannabis investors Active funding sources Mainstream media Business leaders Cannabis consumers