Cryptocurrency And CBD: How The Two Markets Can Benefit From Each Other
Treum Offers Blockchain Services to Vertically-integrated Cannabis Businesses, Amongst Other Consumer Goods Sectors.
Using blockchain technology to validate health claims on products can reduce the risk of noncompliance with regulations of the industry.
When it comes to selling and buying cannabis, the process is a little difficult. Many states allow for this type of growth, as well as the production of CBD, but there are a lot of little details and regulations that need to be followed in the industry. There are different rules in every state, and even some cities have restricted how these products can be sold. Now, a recent interview with Tyler Mulvihill, the co-founder of Treum, reveals exactly what blockchain could do to help with this compliance.
Treum was developed with ConsenSys, a venture studio by Ethereum, and Mulvihill believes that cryptocurrency and blockchain are beneficial to the industry. He explained,
“Really, the only reasons that you want blockchain is if you have an end-sided marketplace or you have third parties that are trying to create some sort of trustless network.”
It also helps to create transparency amongst the consumer base.
The interview takes place at Black Dirt CBD, a vertically-integrated business, and the interviewer asked what Treum would bring to the table for the brand. Mulvihill explained that there are presently two use cases for these types of supply chains – “to bring transparency to the consumers” and to “eliminate a lot of the regulatory burden of reporting.”
Presently, there are some customers that have certain claims on their packages, but consumers don’t necessarily trust these claims, making them less meaningful. With Treum, or their partner Verified Organic, the documentation that shows proof of these claims can be uploaded where consumers can validate the claims by scanning a QR code.
Everything from the seed to the sale needs to be logged with cannabis supply chains, according to mandates by the federal government. In choosing to log this information on the supply chain, this reporting becomes simple and easy to adhere to, which means companies have a lowered risk of noncompliance. Regulators then have “complete visibility into the supply chains.”
Blockchain technology was introduced originally as the immutable ledger of Bitcoin, the original cryptocurrency. Its purpose was to show every transaction that occurred with Bitcoin, but the technology has since grown to be used in consumer goods, the healthcare industry, and more. Considering the many reporting requirements implemented federally for the cannabis industry, this type of trustless ledger could be exactly what companies need to remain in business.