Blockchain is a technology that was first created for bitcoin, a cryptocurrency or digital money. This digital ledger tech is now being used by companies in insurance, banking, and contracts for tracking the sales of marijuana.
Cannabis sales may soon be legalized in Canada; it will follow the same model of distribution and retailing as used for liquor and tobacco. Subsequently, suggestions were invited by the government of British Columbia about different rules which may be required for easing the process of marijuana sales. IBM came up with the idea of using blockchain!
The 4-page report put up by IBM detailed the manner in which cannabis supplies can be tracked as they pass through the supply chain, from the farmer to the distributor, to the retailer, and finally to customers. Renowned and publicly available blockchain-using encrypted digital documents are currently used to track the cryptocurrency economy and validate transactions. Tech companies have however begun using this technology for many other purposes. For example, Walmart is using it for tracking livestock and other kinds of farm products.
The relevance of blockchain technology to marijuana regulation is similar to the importance of the technology in other areas like food chains and pharma distribution. The primary aim of blockchain use in these sectors is the same as it would be for tracking of marijuana sales, i.e., ensure safety and health of consumers, prevent counterfeiting and fraud, and create a model of transparent regulation.