Marijuana Business Magazine September 2018

C ould blockchain technology be the cannabis industry’s silver bullet? Struggling with payment and banking barriers and facing heavy government regulation, cannabis indus- try executives are on the prowl for solu- tions that can make their lives easier. Blockchain, typically associated with bitcoin and the cryptocurrency phe- nomenon, is among the newest “solu- tions” being floated in the marijuana industry, with big companies such as tech giant IBM and smaller marijuana- focused companies advocating use of the technology. EXECUTIVE SUMMARY Blockchain, typically associated with bitcoin and the cryptocurrency phenomenon, is among the newest advancements being floated in the marijuana industry. Advocates contend blockchain technology could be used to solve payment and banking conundrums facing cannabis businesses and provide seed-to-sale tracking. Here’s what you need to know: • Blockchain is a decentralized digital ledger of transactions. Each transaction, or “block,” is added to the ledger linearly, forming a chain of blocks. • Large companies such as tech giant IBM and smaller marijuana-focused businesses are advocating use of the technology in the cannabis industry. • Retailers and growers are the primary cannabis-related companies using blockchain. • Some cannabis industry executives see blockchain and cryptocurrencies as a solution to the cannabis industry’s banking troubles by replacing conventional transactions with cryptocurrency. • Other industry officials and some skeptics question whether blockchain can be successfully deployed on a widespread basis in the marijuana industry. By Omar Sacirbey September 2018 • Marijuana Business Magazine • 81