At the height of the initial coin offering craze a few years ago, at least once a week, an acquaintance would send me a new cannabis cryptocurrency ICO notification or a recent article on a cutting-edge startup that planned to change cannabis tech forever with its blockchain application.
I’ve seen that demystifying blockchain, cryptocurrency and cannabis tech can be confusing because these terms are used with little regard to their underlying technology.
To understand who constitutes a “peer,” I like to reference peer-to-peer music file sharing on Napster: Many users experienced trouble downloading songs in instances when no peers had made that file available on their computers yet.
When a new transaction is made that relies on writing to the blockchain, the transaction is written by the peer to whom the person transacting is closest.
The result is that it has the potential to be applicable to regulated industries that rely upon maintaining trust throughout the supply chain, such as pharmaceuticals and tobacco.
It’s equally important to know what blockchain isn’t: If peers don’t exist and only the immutable ledger exists, the technology isn’t blockchain.
While there are some players in this space aiming to produce true blockchain technology applicable for cannabis businesses, in my opinion, it would simply take too long to function as an applicable technology for running a business.
If a governing entity like a state, province or federal government were to require blockchain for compliance and define its parameters, blockchain would do an excellent job of ensuring adequate, auditable compliance.
If a government were to pursue this route, I’d recommend the entity set up the initial hosting and then allow verified peers to access the chain for compliance.
Governments tend to embrace new technology and turn with the nimbleness of a container ship.
We’re already seeing some of the world’s most respected business leaders accept cryptocurrency: Mark Cuban with the Mavericks and Elon Musk with Tesla, as well as financial leaders Visa and Morgan Stanley.
In summary, I foresee a day in the future when the public will demand transparency of regulated substances through a publicly accessible blockchain and paying with cryptocurrency will be as easy as any other mobile app or payment method.