CBD Industry Relying on Blockchain Transparency

CBD Industry Relying on Blockchain Transparency 1024 500 Crypto Rand Group
CBD Blockchain

The legitimacy of cannabis products like CBD and its flourishing trade is still in its infancy, but blockchain could help.

In Uruguay, products based on CBD (a molecule derived from cannabis) will thus be able to benefit from a logistical monitoring system to ensure their quality.

How to be sure that the products are harmless?

Cannabidiol, or CBD, is one of the molecules belonging to the cannabinoid family. It is present in hemp plants (from which cannabis resin is extracted).

Unlike THC, which is classified as an illegal substance in many countries, CBD is increasingly recognised for its medicinal virtues, against anxiety and pain, in a role similar to that of a sedative.

The problem assumed is to have products rich in CBD and poor in THC, to avoid the psychotropic effects of the latter. This is where a blockchain monitoring can intervene, to ensure the quality of a product, such as CBD oil, for example.

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Monitoring based on the Aeternity blockchain (AE)

Thus, as reported by the media outlet DailyHodl, this summer 2020 saw the launch of the first logistical monitoring of cannabis products via blockchain.

It was the company UruguayCan, specialising in cannabis for medical use, which launched an application for tracing the seed to the end consumer. It used the Aeternity (AE) blockchain for this purpose:

“Created by the Inmind development group, the platform enables complete traceability of medical cannabis (…). This effort aims to raise product safety standards to an international level of quality. »

The application will allow all aspects of the life cycle of cannabis plants to be monitored. From pod size to temperature, humidity or greenhouse location. As well as extraction, packaging and transport.

The transparency of the blockchains and the ability to obtain this comprehensive information on cannabis products is vital for pharmaceutical companies and other medical entities seeking to improve the image of these products.

According to BusinessBlockchainHQ, in 2019, the cannabis industry would have achieved a turnover of 52 billion dollars in the United States of America alone. The sector also promises significant growth rates in the coming years.

Behind the negative image of THC lies CBD, a promising molecule whose therapeutic virtues are still largely unknown. Distributed Registry Technology (DLT) blockchains seem to be the best way to bring legitimacy to CBD-based products, by ensuring quality monitoring.

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