Canada’s soon-to-be legalized cannabis industry could create as much as $22 billion in revenue, and now provincial governments are searching for tools to deal with the newly regulated commodity.
Tech industry leader IBM sees blockchain as an ideal way to ensure transparency in the new cannabis market and to address concerns with criminal activity or fraud. IBM has suggested that Canadian officials evaluate the advantages of using blockchain to control the supply and management for the growing cannabis market.
Blockchain brings cross-industry transparency
Blockchain is a shared digital ledger that records transactions, allowing for the transparent tracking of exchanges. IBM is promoting blockchain technology as a valuable tool for a wide range of business sectors, particularly regulated industries.
The technology company partnered with banking groups such as Bank of Montreal and UBS to create a trading platform based on blockchain technology, called Batavia. IBM is also pursuing the use of blockchain to improve food supply chain safety along with a group of leading food retailers.
The pharmaceutical industry is already witnessing the benefits of blockchain’s advanced digital ledger technology. According to Pharmaceutical Technology magazine, the industry can use the new technology to ensure security, and blockchain can aid with the secure transmission of sensitive patient data and clinical information.
Tracking cannabis from plant to store sale
IBM have passed on their proposal to the government of British Columbia, according to the website Smat2Zero. The proposal outlines how blockchain can be used to track the distribution of the drug, from cultivation to point of sale.
IBM suggests that blockchain will aid and offer visibility for sourcing, selling, and pricing of products. Moreover, certified producers will be able to track inventory and supply.
The technology company submitted their proposal in response to a request for public feedback issued by the Western Canadian province.
A new kind of network
Through the use of data analytics, producers will also be able to make meaningful demand projections and review consumption trends. Moreover, everyone within the network will be able to see all of the data; real-time data collection would further allow the cannabis products to be tracked and traced at any given time point.
IBM pointed out that, “This type of transparency would bring a new level of visibility and control to the provincial regulators.”
While the potential application of blockchain to cannabis production is headline grabbing, the news adds another layer to the growing applications of blockchain to pharmaceuticals and healthcare.
The exchange of data in healthcare happens in high frequency among stakeholders, across varying platforms and technologies, creating the risk of error and vulnerability to cyberattack. Blockchain could be the key to changing that high risk exchange for the better.
