Challenges faced by the cannabis industry

Flawed supply chains
Flawed supply chains

Under-regulated, relatively young and facing competition from illegal enterprises, cannabis businesses struggle to establish verifiable supply chains and to promptly and accurately detect fraud and counterfeiting.

Heavy taxes
Heavy taxes

Immense taxation when purchasing marijuana products remains a part of the legalization deal. Washington state currently collects 37% on cannabis sales; ITEP even recommends governments shift to per-weight taxation to combat falling tax revenues.

Illegal practices
Illegal practices

Despite partial or full legalization in some jurisdictions, MarketInsider reports that its production and distribution are still mostly unregulated, with roughly 90% of all marijuana sales made illegally.

Restricted payments
Restricted payments

Cannabis businesses face difficulty getting credit and finance. Under 3% of US banks are willing to provide financial services to cannabis businesses, according to MarijuanaBreak.

Complex value transfers
Complex value transfers

In traditional practices, value transfers — data, assets, and other items — require the presence of intermediaries, which makes these processes slow and inefficient.

Inadequate record-keeping
Inadequate record-keeping

Legislatures that approved cannabis and marijuana sale require complete record-keeping of supply chains, from planting to distribution.

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Blockchain solutions for cannabis from Aetsoft

Fast and secure payments

With decentralized blockchain-enabled assets, cannabis-related businesses can perform transactions in a fast and secure manner, without using regulated means of payment.

Regulatory compliance

For regulators having difficulty tracking illegal cannabis turnover, blockchain can become a panacea by allowing them to completely trace good’s transportation and money flows.

Legality audit

Make all sales verifiable and share data with all participants, helping to eliminate fraud and track purchases.

P2P transactions

Smart contracts bring autonomy to financial processes, free of third-party involvement, making value transfers direct and less costly.

End-to-end tracking

Traceable supply chains include data on all parties — farmers, growers, dispensaries, retailers — where any negative behavior will be immediately spotted.

Consistent breeding records

Blockchain can provide a single, transparent, and permanent database where companies could file info about weed and marijuana species, including growth, harvesting, THC/CBD balance, sales and reviews data.

Blockchain applications in сannabis

Deals

Use case 1. Regulatory-compliant deals

Currently

Unwilling to make deals on shady terms, buyers generally distrust sellers and likely refuse to deal with them at all; strict regulatory environment and transaction insecurity add to the cause.

With blockchain

Establish blockchain-enabled trades with digital assets; cryptographically-secure and regulatory-compliant, they set the scene for trustless settlements.

improve processes with Blockchain
Breeding records

Use case 2. Consistent breeding records

Currently

Fragmented record-keeping leaves farmers with opaque breeding records, filled with gaps across viable data assets.

With blockchain

Establish a consistent database of breeding records, citing information about the entire breeding process of each plant, including THC, CBD, harvesting, and other data.

improve processes with Blockchain
Supply chains

Use case 3. Transparent supply chains

Currently

From cultivation to sales, data opacity might expect you at any step of the supply chain, making monitoring and analytics both a challenge and risky venture.

With blockchain

Get end-to-end transparency across your logistics, with real-time, visible, and incorruptible records throughout transportation.

improve processes with Blockchain

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