Blockchain In The Cannabis Industry Sets The Pace For Enterprise CIOs

2018-06-13T11:11:31+00:00June 1st, 2018|

With innovations moving on apace in the legalized cannabis industry, it could be time for enterprise CIOs from other sectors to learn a lesson or two from the progress that has been made. Marijuana industry IT leaders are taking the bold step of adopting the latest technologies like blockchain and AI, free from the limitations that companies with legacy systems face and the result is an evolution towards an automated enterprise.

Blockchain And AI Resolves The Problems Of The Marijuana Industry

Transparency will always be key in the legal cannabis industry. Even though several states have now legalized the drug for recreational use and over 60% of US citizens are in favor of it, it still has its critics. Not only does the industry have its opponents, it also faces a number of practical challenges which come with the territory of legalizing the drug. Yet by harnessing the power of blockchain transactions and Artificial Intelligence, a number of these problems can be resolved.

Leaders within the newly burgeoning cannabis industry have the opportunity to develop systems and infrastructures which are free from any of the restraints that a legacy system can bring, and their application of these technologies could teach enterprise CIOs a few things.

A Lack Of Understanding Blocks Progress

One of the primary issues that prevents CIOs from other sectors from adopting the benefits of Blockchain technology is the lack of understanding about the way in which it actually works. A Blockchain service is capable of transmitting information of any type transparently and securely – ideal for the needs of the cannabis industry. While AI software is capable of mining huge amounts of data, searching for discrepancies which could be easily missed by human eyes, Blockchain management systems are able to transmit that data securely, allowing only the necessary people to access is. By combining these emergent technologies, many of the anxieties linked to the legal cannabis trade can be eased.

Improved Regulatory Oversight

The way in which Blockchain works is by the creation of a distributed ledger to which several individuals have a key. No single person is capable of accessing the information by themselves – all of the keys are necessary to unlock the information. This guarantees the security of transactions. In fact, they are quite possibly more secure than the transactions carried out by existing institutions. In those jurisdictions where the recreational cannabis industry has been legalized, the use of AI and Blockchain technologies in tandem can supply a seamless information exchange between government regulators and the business itself, helping to assure government agencies which oversee the industry that it is possible to control theft and fraud effectively.

Effective Tracking Of Products And Inventory

In just the United States, the marijuana industry boasts an annual market worth $10 billion. In legal states, it also represents a large proportion of the state’s tax revenues. As the companies within this sector start to integrate Blockchain and AI technologies into their practice, the increase in transparency should encourage other jurisdictions to pay serious consideration to the benefits of legalizing recreational cannabis.

Not only does Blockchain allow for greater oversight of regulation, it also allows companies to develop better inventory and product tracking systems. Theft is a problem for all producers of consumer products, and within the cannabis industry this could be a potentially serious issue. By using Artificial Intelligence to monitor the secure Blockchain information management system, the risks can be greatly reduced.

Greater Customer Privacy

It is not only the cannabis industry which benefits from using Blockchain transactions – consumers benefit too. This form of transaction ensures that personal details remain private, only being accessible to designated government regulators and employees of the company. This is key for an industry which still has a stigma linked with it.

Many examples have come to the public’s attention of embarrassing data breaches which have led to serious consequences for customers. Vulnerabilities have been exposed by hackers of even big name companies like Yahoo and Equifax, and the result has been potentially very serious implications for consumers. However using Blockchain and AI technologies can prevent the same from taking place in the marijuana industry.

It is Possible To Guarantee Security Within the Cannabis Industry

It is understandable that there remain concerns about the emergence of a legal cannabis industry in many states around the USA. After all, any industry which revolves essentially around recreational drug use is at risk of potential abuse. However, by harnessing Blockchain transaction management systems and AI technology, the risks linked with the cannabis industry can be hugely reduced since these technologies allow better oversight, greater customer privacy and more secure tracking of products – a win win situation for all parties involved.

Get more information about Blockchain in the cannabis industry at www.igcgroup.io/