This week was a lively day for many Canadians and libertarians from all over the world. In a historic decision, Canada became the second country in the world to legalize marijuana for recreational purposes, after Uruguay.
In recent times, we have seen news about the economic potential of the cannabis industry. An article in The Wall Street Journal, entitled “Wall Street’s Marijuana Madness: It’s Like the Internet in 1997,” describes the enthusiasm of big investors for this industry and compares the industry’s development with the one from cryptocurrencies.
According to statistics provided by Blockchain Solutions Inc. (DMG), cannabis represents a market of $ 23 billion in Canada alone, and a global market of up to $ 500 billion. The cannabis market and cryptocurrencies have much in common. Both are global, have problems with legislators, are in the early stages of their development and are attracting large investors.
Pot and Crypto: The Future?
According to an official statement released Wednesday, October 17, (DMG), a British company that provides blockchain and cryptocurrency services announced the development of a global blockchain-based platform for supply chain management of the legal marijuana industry. The DMG platform will have the capability to provide immediate traceability of products, automate transactions and flow of information between involved parties and audit systems.
Blockchain technology has been actively deployed to manage supply chains. Earlier this month, IBM launched its block-based food tracking network, the Food Trust, to connect different parts of the food industry. Last month, Walmart announced the implementation of a tracking system also relying on the blockchain.
Dan Reitzik, CEO of DMG commented:
“The emerging cannabis industry demands product management solutions and blockchain is the most logical choice. We want to be the first to offer an enterprise grade solution in partnership with leading technology providers and cannabis producers, processors and distributors. The first use of blockchain was bitcoin, but the perfect use is supply chain management for controlled products such as cannabis. Canada is being positioned to be the global supplier of cannabis, and our blockchain platform can help enable this by way of product traceability for rapid recalls, ensuring a legal source of product, enhancing product safety, as well as facilitating and automating legal and taxation compliance.”
Steps for Implementation
According to the official statement, the implementation of the supply chain management system, includes:
- Supply chain automation on blockchain, applying artificial intelligence, IoT, machine learning and tight integration across the entire supply chain
- Development of interfaces between the blockchain platform and legacy systems, allowing for automated transactions and process flows, utilizing smart contracts
- Integration of existing ERP systems with the blockchain platform, supporting automated triggering of events such as defective product recall or the resupply process
- Integration with licensed producers, licensed distributors, retailers, shippers, as well as reporting and auditing systems
- Onboarding of new participants