Blockchain is revolutionizing the way business is being done. It could also have great benefits for the cannabis industry. Aeternity recently announced that it is creating a supply chain management platform using blockchain for cannabis trade. The company will be undertaking this innovative initiative alongside Uruguay Can, one of South America’s leading cannabis production companies.
Following the traceability of cannabis seeds to know exactly what phytosanitary products lead or prove the validity of university degrees are some of the applications of blockchain technology with cannabis. It’s still in the “initial” phase but evolving “quickly.”
“In this third revolution of the internet, blockchain technology allows a valuable exchange,” expressed Pablo Coirolo, Director of the blockchain company Aeternity.
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Combining blockchain technology with cannabis proves to be a valuable partnership
Together with the company UruguayCan, Aeternity is working on the traceability of medical cannabis, legal in the South American country, from the seed to the final product.
“By using blockchain technology with cannabis, laboratories can now receive medical cannabis by knowing exactly all the phytosanitary products it contains,” explained Coirolo, who also underlined the importance of knowing the plant’s certification of origin to avoid counterfeiting.
“Blockchain technology is applicable to more than cannabis. It allows the final consumer not only to know how a product was produced but also that it is the original,” he added.
Aeternity was one of the companies that participated in “LaBITconf,” the “largest bitcoin and blockchain event in Latin America” that was held in Uruguay for the first time.
This conference was attended by experts in the field, such as the influencer Andreas Antonopoulos and the Executive Director of Blockstream, Adam Back.
Companies see rapid growth from using blockchain technology with cannabis
The traceability of agricultural products enabled Latin America to grow rapidly in this technological tool.
“In this way, Argentina, Chile, Peru or Brazil stand out from the rest of the region in terms of blockchain,” said Coirolo. “However, this technology is still very recent, and although it is rapidly evolving, it is in a state similar to that of the Internet in 1998.”
For Coirolo, the steps to follow for the development of cryptocurrencies and using blockchain technology with cannabis is to increase its dissemination by “grounding” its applications so that “the programmers understand how they can use this technology and how they can earn with it.”
“It’s not something that will happen in the future. This is happening today,” said Coirolo.
He added that even U.S. financial firm J.P. Morgan has created its own cryptocurrency to trade with its customers and one of Honduras’ leading banks is already using this network.
The adoption of blockchain on a large scale
“This whole revolution of using blockchain technology with cannabis is going to be silent because the processes of blockchain are executed in the back,” he added. “The user will be able to use an application on a phone in the same way, but it will be the blockchain technology, invisible to the consumer, that will make it safer.”
Coirolo explained that companies seem to have realized the advantages of using blockchain technology with cannabis. He used to have to explain what this tool was and now it is the companies that call him to implement it.
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First published in LaRepublica, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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