VeChain Blockchain Technology will disrupt the Cannabis Industry
VeChain Blockchain Technology will disrupt the Cannabis Industry
Haven’t you heard about blockchain technology or cryptocurrencies? You may even think that it is the same.
However, Forbes has positioned blockchain as a cornerstone of a new industrial revolution, and it is expected that this highly encrypted system is changing the way businesses do business on a global level. The cannabis industry can also enjoy its own solutions by adopting blockchain technology.
In this article, we cover How VeChain will disrupt the legal cannabis industry and how you can benefit from it. No matter if you are a crypto investor, a cannabis user, or even an entrepreneur looking to open or improve a business using blockchain technology for Supply Chain Management solutions of Perishable Goods.
Cryptocurrency and Anonymity: A double-edged sword
Cryptocurrencies and blockchain technology often work together, but they are not the same. While cryptocurrencies operate on blockchain, blockchain can exist independently of cryptocurrencies. Since these terms are often referred to as compatibility, we would like to look at cryptocurrencies and the potential ways it relates to the cannabis industry before returning to the possibility that blockchain, which is the main subject, will bring to cannabis.
What are Cryptocurrencies?
Cryptocurrencies are digital currencies, and complex and encrypted systems enhance their effectiveness and accountability, and counterfeiting is virtually impossible… at least with no evidence of the crime. Bitcoin is best known among the various cryptocurrencies on the market and has been used for years in pharmacies and cannabis businesses as a way to avoid a banking system that continues to refuse services based on the government’s ongoing resistance to legalization. Before the spread of cryptocurrencies, cannabis shops and pharmacies had to rely on high-risk cash-only systems, which required them to employ armed guards at exorbitant rates, not to mention the loss of proceeds from the robbery.
Cryptocurrencies had a bad reputation from early on as they are used in dark web trading. The Dark Web allows anonymous trading, and was the platform for buying and selling everything from hard drugs to illegal firearms to obscenities beyond the scope of this channel. In order to make transactions using cryptocurrencies on the dark web and leave no trace of it, buyers needed to know what they were doing, but the fact that they were able to do so kept law enforcement watchful. And while cryptocurrencies still carry that dirty history, it can be said that digital currency has become more mainstream, which brings us a little closer to the originally planned purpose. There is even a hypothesis that cryptocurrency innovation will replace the U.S. dollar within the next years.
Blockchain Technology for Supply Chain Management – How it Works
However, as mentioned earlier, cryptocurrency and blockchain technology are separate concepts. Blockchain does not carry the dark, exploited history of cryptocurrencies. You know that cryptocurrencies rely on blockchain to ensure authenticity, but what exactly is a blockchain? Blockchain is a complex, encrypted digital ledger that records physical assets moving through the supply chain. Once data is entered into the blockchain, it becomes locked and secure and cannot be tampered with or forged.
The interaction with the blockchain is carried out by a coded instruction that defines the content of the transaction in the supply chain called a “smart contract.” Through smart contracts, you can track and record a variety of necessary tasks, such as tracking, entering time stamps, and collecting signatures. Once entered, the information cannot be changed, which increases the transaction’s authenticity and eliminates the possibility of human error. Smart contracts can also be used for payment transactions by using causal relationships. As you can see, the benefits of dealing with supply chain challenges unique to the cannabis industry are already well understood, but let’s have a look into some details.
The Many Ways Blockchain is Useful for the Cannabis Industry
The legal cannabis business is usually forced to deal with dodge shady growers who evade regulations and sellers who take the money and run away with little effect.
Authenticity and accountability
Trust is one of the most important features that blockchain technology can offer the cannabis industry. Authenticity and accountability are easily achieved by the system’s unwavering adherence to standard operating procedures. Multiple parties are responsible for reviewing and entering data into the blockchain, creating records that cannot be altered or edited. The entire cultivation process is monitored, recorded, and tracked through the blockchain, ensuring timestamped accountability.
The data recorded on the blockchain can be used to verify that operators comply with standards and regulations during litigation, adding to another dimension the benefits of using blockchain technology. This verifiable proof is critical in the legal cannabis industry. Blockchain evidence is considered a bulwark by the court system and provides the strongest legal protection that cannabis companies can expect in the legalization era.
Supply Chain Solutions
Furthermore, another great advantage of blockchain technology is that it allows you to track the shipment of physical goods through GPS trackers accurately. The GPS will seamlessly communicate with the blockchain to update the blockchain in real-time and cooperate in the design of the causality of blockchain technology.
Using VeChain for Perishable Goods
VeChain is a blockchain platform that is especially expected in the cannabis industry. It focuses on making global product distribution easier and more secure while providing all the benefits of blockchain technology. Since VeChain uses a turnkey approach blockchain system that is easily accessible from VeChain Mobile Work App, there is no learning curve to master VeChain. This makes it an attractive access point for those with little or no knowledge or experience of blockchain technology’s work to enjoy its benefits. VeChain works with a system called ToolChain that allows users to manage all of their product and customer transactions from the point of manufacture to the point of sale.
The ToolChain features a variety of functions that help inventory and accountability, including Near Field Communication (NFC) chips (ideal for digital labels), Radio Automated Identification (RFID) chips, and Quick Response (Q.R.) code printers. This allows the VeChain blockchain to cryptographically locate the product during the shipping process and never cause any questions about the product’s location.
VeChain also has extensive experience in fresh produce. The company’s blockchain system was adopted in 2018 by DNV GL, an internationally accredited registration, and product verification agency. Since then, VeChain’s system has been used to support the Customer Confidence Index (CCI), which deals with delicate perishables.
VeChain’s data collection system
VeChain’s extensive data collection system provides consumers with access to basic information such as weight and product information such as shipment history, production details, harvest, freshness, lab test results, and suppliers. Simply scanning the printed Q.R. code will enable shop and pharmacy customers to read all the product statistics in a verifiable form directly from VeChain’s blockchain.
So how do you ensure that producers don’t simply submit false information to the blockchain? In addition to the fact that the blockchain holds untampered records with digital fingerprints and the huge fines that would be incurred if they were exposed, DNV GL is involved in a rigorous audit program that communicates directly with the producers at each step of the process. Updating VeChain Mobile Work App is simple and can be done by uploading a variety of data, including traditional text data and cutting-edge media such as photos and videos.
VeChain Partnership with TruTrace
VeChain revealed on its official account on Twitter that it has partnered with Canadian software company TruTrace to improve its adoption of blockchain in product provenance and certification.
We're excited to announce a strategic Integration Partnership with TruTrace Technologies, a Canadian SaaS platform that will soon offer #VeChain ToolChain to clients.
— vechain (@vechainofficial) August 29, 2022
TruTrace is a SaaS (Software as a Service) company that provides blockchain-integrated software for the legal cannabis, food, apparel, and pharmaceutical industries. What’s remarkable is that TruTrace’s software can be used to uncover supply chain processes in all these industries.
TruTrace believes that integrating VeChain’s enterprise blockchain technology will improve the transparency of the system and protect its users. TruTrace believes this is much needed in the legal cannabis sector, which the company considers a major focus.
Benefits for the Average Cannabis Consumer
When you order a product, you feel that it is different from what you bought. It may be a dress you couldn’t try on, it may be a video game, or it may be just a hamburger, but it’s definitely a scary feeling. In an industry like cannabis, such reactions can range from frustration to a weak response to a doctor’s visit. Do you think we’re exaggerating? In 2017, a cancer patient was admitted to a hospital in Los Angeles and later died. What’s the cause of death? It is reportedly a rare fungal infection derived from moldy cannabis. This avoidable tragedy stems from the contradiction that blockchain technology seeks to eradicate. And in a legal situation where the federal government still refuses to acknowledge the legitimacy of the cannabis industry, this contradiction is beyond control.
Blockchain technology can give hemp consumers a greater sense of security by managing the hemp industry with agreed standards and by displaying a larger history of products, including cultivation, harvesting, processing, and logistics. Timestamps, signatures, and documents support all this information, so cannabis consumers no longer need to buy blindly.
Blockchain technology providers such as VeChain offer a turnkey approach to adopting a system that could be revolutionary, but it is still a bit more complicated than the whole cannabis industry switching on. Companies need to decide the best route for their situation. However, while other cannabis businesses are adopting blockchain systems more directly, such as the advent of cryptocurrency ATMs in pharmacies, we see at least companies indirectly adopting blockchain technology. If it really is the Fourth Industrial Revolution, as Forbes famously claims, then there is no doubt that it will rise more clearly and more rapidly in the coming months.
Future of VeChain
VeChain’s focus as a cryptocurrency is on the global supply chain. Its main objective is to improve supply chain management and related business processes.
This Blockchain platform is intended to provide transparent information flow, efficient collaboration, and fast value transfer. To that end, the team behind VeChain wants to improve the global supply chain management process. VeChain was founded in 2015 by Louis Vuitton, former CIO of China, Sunny Lu. He combined his expertise in luxury goods with blockchain technology to develop an Internet of Things (IoT) application for the supply chain management. He is still the CEO of VeChain through a non-profit organization called VeChain Foundation.
One of the objectives of establishing VeChain and related Cryptos was to fight against counterfeits, especially in the luxury goods sector. If companies can track each piece of inventory, they can counter counterfeits. For example, you can verify whether a particular product that is sold or offered for sale is a real company product.
Many companies around the world now use this tracking system. Popular applications include food chain safety and traceability and carbon footprint data management. VeChain is also used for vehicle I.D. and passport management systems. This can greatly reduce the crime of stolen cars and chop shops.
Other applications include retail store management (especially luxury goods), logistics solutions, natural gas supply and transport tracing, electronic copyright, and document usage. Apart from this, VeChain uses sensors from different manufacturers to trace products through blockchain as a software in each part of the supply chain. This helps companies to prevent fraud such as counterfeiting or theft. A company can guarantee the authenticity of the purchased product.
Related: Is VeChain a Good Investment?
To conclude, Blockchain Technology is here to stay and VeChain it is on the right side to be a leader on Supply Chain Management solutions.
So, on behalf of all arguments presented on this article, we can say VeChain and the VET token have a promising future considering the VeChain ecosystem solid track record and notable partnerships.
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.