Although the Legal Cannabis industry is the fastest-growing market in the USA it has been largely marginalized by banks and other financial institutions. With the introduction of Bitcoin and other altcoins, the players of the market (medical dispensaries, legal producers etc) now have more financial solutions. The cannabis industry, like many others, recently sees an explosion of companies claiming to be implementing blockchain in one way or another. New jobs are created, investments are taking place. As cryptocurrencies became popular, several marijuana-related cryptocurrencies have been introduced. Blockchain promises to bring transparency to the Cannabis industry that’s what the cannabis market needs.
In this article, we’ll focus on the most popular ones among them.
PotCOIN (POT) was the first digital currency that was created to fast-track transactions in the marijuana industry. It uses a Proof of Stake, and it enables fast transactions with very little transaction fees. PotCoin is being used in about 800 locations in 35 countries worldwide. This is powered by General Bytes who is one of the topmost Bitcoin ATM providers in the world. PotCoin will soon be migrated to the Bitcoin or Ethereum blockchain for the establishment of the PotCoin Decentralized Autonomous Organization. They aim to create a well-defined structure for PotCoin so that it can compete with smart contracts. As more people begin to accept PotCoin, there will be a reward program for consumers and sellers.
Not long after PotCoin was introduced, CannabisCOIN was introduced. It is a peer-to-peer, proof-of-work, open-source currency and it was developed with the aim of making transactions easier for marijuana dispensaries. It is popular, but investors haven’t reaped many rewards from it.
CannabisCoin aims to provide a fast way for people to convert cryptocurrency to cannabis. It has also sprouted CANNdy which is a line of strains and medicine developed specifically to be traded for CannabisCoin. The ongoing rate is 1 CannabisCoin to 1 gram of medication.
HempCoin was created to formulate a more flexible payment method for legalized marijuana. It was created so that could be used in a transaction between cannabis farmers and dispensaries HempCoin runs on the Bitcoin core and that means that any transactions with it will have lower fees. It was created around the same time as PotCoin, but it is not as popular as PotCoin. But, there are plans to create incentives so that more consumers and dispensaries can adopt HempCoin. So if someone wants to buy his favorite strain, he can pay with this instead of cash.
Paragon offers a banking alternative to cannabis businesses. It is promoted as the coin that is not only for purchasing marijuana but its token (PRG token) was developed to help different marijuana businesses grow. Paragon is a crypto and blockchain project that focuses solely on the cannabis industry. The project uses Paragon Coin aims to facilitate payments and funds transfers within the network. The platform offers a seed-to-sale’ solution so businesses can track the source of the final product sold to customers. Each stage in the supply chain is recorded by responsible parties – like growers, manufacturers, logistics, and scientists testing the product in labs – and launched as a smart contract.
Budbo aims to be the number one cryptocurrency solution for the marijuana industry. Budbo aims to do more than traditional marijuana cryptocurrencies by connecting buyers, dispensaries and growers through its blockchain. It has created a tool that can be used to manage all the steps of marijuana production. Budbo can be used by labs and growers to confirm the ratio of THC to CBD content amongst other specifications. Sellers can track inventory and consumers can trace purchases. Budbo will help government bodies, professionals in the industry and others to handle logistics and provide proof for pickup, delivery, and orders.
DopeCoinGold wants to increase security and transparency for store owners. DopeCoin’s aim is to work with any sort of weed business, legal or otherwise. Today’s federal laws and regulations, make it hard to simply transfer money to the bank. Of course, after splitting the cash, buying supplies and paying employees; you’ll need to figure out how to take the leftover money to the bank. The good news is, it’ll be way easier to transfer cash straight to your bank. And perhaps the best thing about DopeCoin is that users will be able to perform fast and secure transactions at no cost.
The cannabis market is not about just some people smoking their bongs. A new economy is on the way. There was 690 percent growth in marijuana industry job listings between Jan.1, 2017 and Aug. 1, 2018, and by 2020 the industry is expected to create 250,000 new jobs, according to New Frontier Data. Moreover, the cannabis industry is projected to grow 220% in 2019 alone, according to the report.
Let’s not forget that the potential growth of the Cannabis market will grow even more when more online websites can serve cannabis customers who will be able to pay by Cryptocurrency. Additionally, the blockchain framework can function as a record of any series of supply chain transactions. A part of their technology is called “Smart contracts” and help move goods between vendors while a ledger stores information about a product, providing guaranty of any regulatory compliance and quality. As a result, the Cannabis Industry can benefit from reducing their costs and increase their product value.
While Cannabis can be helped by Cryptocurrency there are many in the Crypto industry that believes that the cannabis industry can also help Cryptos and be a front-runner in adopting bitcoin or any other digital currency. Moreover, 14 percent of the population is locked out of the banking system because they don’t have the credit or are involved in high-risk businesses.
If Bitcoin could benefit the cannabis industry, then there would likely be a long list of companies which have experimented therewith.