With the rise in novel and casual CBD consumption, concerns have been raised regarding where cannabinoids are sourced, including their quality and transport within a country or abroad. In a global market, it can be incredibly difficult to trace production and dispensing of unregulated material, which has quickly become the case in places where cannabinoids and CBD have been legalised but remain unregulated by governmental bodies.
But if you’re concerned about the source and quality of your CBD products, what can you do to ensure it’s of a high grade and suitable for your needs? Here’s How Blockchains Can Increase CBD Market Traceability and thus, inform consumers of products far more deeply than before.
What is Blockchain Technology?
Plenty of businesses and companies already use blockchain technology to manage, monitor and maintain digital inventories of components, products and stock across large areas of transport or distribution. In essence, a blockchain is little more than a digital ledger; every time a product or component is shipped, transported or sold, it’s status is updated in the blockchain, meaning every individual package or item can be tracked and traced using unique identification numbers.
“From field to factory to shelf, you can follow fresh produce the whole way. A blockchain will tell you which bottle of milk came from which cow, when it was taken and pasteurised, how long it was in transit and any temperatures taken along the route. It’s an encyclopedia of data for that individual product and its constituents,” marvels Phillip Haggler, a marketer at Britstudent and Next Coursework.
Why Use Blockchains in the CBD Industry?
Legalisation has hurdles, and one is accountability. The food and medicine industry already uses blockchain technology because it not only safeguards consumers from poor quality or falsified products, it gives accountability to the growers, manufacturers and quality control personnel to ensure everything they produce and ship is of the highest quality assurance. Currently a novel consumable at best and illegal in many states, cannabinoids are subject to great distrust and scrutiny regarding product source, development and shipping practices.
Blockchains are an established, transparent and easily recognisable way to ensure CBD products are not only of consumable quality, but enable dispensaries and consumers to discover where their product is from, how it is handled and most importantly, if it is appropriate for their use. Using an already-refined system means it costs less to institute and manage, governing bodies can quickly and easily investigate reports of misconduct and consumers can buy in confidence.
Becoming “Novel” Opens Up Blockchain Use
While the European Union has repealed their interest in recategorizing cannabinoid products as novel foodstuffs, there’s been a push from Canadian and Netherlandian authorities to add the label. Doing so would allow CBD products to be distributed legally and responsibly, and allow blockchain tracing to be instituted without difficulty. This would eliminate prior concerns over source quality and product handling or production, giving some power back to the governing bodies and consumers alike.
“Distribution is already occurring. Novelising CBD products would ensure the health and safety of those buying CBD products,” says William Causter, a business writer at Australia2write and Write My X.
Even in Canada, where the distribution of cannabinoids is already commercially widespread, the lack of blockchain tracing has left many consumers concerned. Instituting the system would not only keep regulations on quality control tighter, but assist in discovering poor chains, detecting stock inconsistency and protecting distributors and producers from unwarranted legal action.
Reshaping the CBD Market Using Blockchains
With a stigmatised market like CBD product distribution, the transparency offered by blockchain use would be invaluable by opening up the supply chain to scrutiny, ensuring quality control and instilling confidence not just in consumers, but governing bodies who currently hold concerns regarding the legalisation and distribution of cannabinoids.
Untapped potential of CBD products, such as augmented foods and supplements for emotional health, would be easier to legalise and access for those who need them. Legalisations allow CBD products to be taxed and therefore provide extra revenue for authorities, and populations of growers, manufacturers and refiners currently conducting business in the shadows would be able to turn their craft into a beneficial living, complete with taxes paid and licensing security to again enable blockchain tracking.
There’s much to gain from using blockchain technology to trace CBD product production. Potential and profits await.
A content marketer and editor at PhD Kingdom and Academic Brits, Michael Dehoyos assists many companies with marketing strategy concepts. He also contributes to numerous sites and publications, including Origin Writings.
Through its evolution, EmergingGrowth.com found a niche in identifying companies that can be overlooked by the markets. We look for strong management, innovation, strategy, execution, and the overall potential for long- term growth. Aside from being a trusted resource for the Emerging Growth info-seekers, we are well known for discovering undervalued companies and bringing them to the attention of the investment community. Through our parent Company, we also have the ability to facilitate road shows to present your products and services to the most influential investment banks in the space.
This article was written by a guest contributor and solely reflects his/her opinions. All information contained herein as well as on the EmergingGrowth.com website is obtained from sources believed to be reliable but not guaranteed to be accurate or all-inclusive. The statements in this article are not that of, nor have they been verified by, or are the opinion of, EmergingGrowth.com. All material is for informational purposes only, and should not be construed as an offer or solicitation to buy or sell securities. The information includes certain forward-looking statements, which may be affected by unforeseen circumstances and / or certain risks. Please consult an investment professional before investing in anything viewed within.