So here’s where there’s some profit to be made. Imagine the amount of long-established alcohol, tobacco, and pharma companies, racing to make early investments in the weed market, which has a growth projection unlike any other industry in existence. In fact, that’s a value of $31.4 billion by 2021, according to a report by Brightfield Group.
Legalization is coming, and no state in America is an exception to this change. But, the challenges that lie ahead will threaten to derail this revolution. However, with blockchain, some, though not all, of these problems, can be solved.
Let’s explore the applications of blockchain in the weed industry.
Making a case for blockchain in the weed market
Let’s take a look at the state of the market for legal cannabis as it stands. To begin with, Constellation Brands – best known for Corona- invested in the Canopy Growth Corp cannabis firm- of nearly $4 billion. Above all, this is a clear indication that the third-highest beer supplier by market share in the world recognizes the sheer scale and potential for growth in the legal weed sector.
Of course, we have to also talk about Monsanto. Although the firm is yet to make clear their intentions with cannabis technically, many people speculate that they are secretly working on something in the space. Specifically, many people worry that Monsanto will eventually develop a genetically modified marijuana strain. And let’s be honest, with Monsanto, the prospect of these claims are high.
Can blockchain tame problems with weed?
Do you want to know how these companies will carve out space for themselves in the industry? Of course, through patents for sure! The thing is, weed strains affect people in different ways, so you can consider each strain as a separate brand waiting for development and monetization. As a result, many small cannabis producers share concerns that these corporations will use their surplus of funds to mark territory and edge out smaller entities.
Since the cannabis industry has been criminalized before, patents on existing plants and products are not well-defined. Thus, the Constellations and Monsantos of the world could explore the lack of patent protection to eliminate small scale competition. Either way, the weed market is heading straight into a turbulent start.
However, there could be some solution to this dilemma. Depending on who you ask, blockchain has been hailed as the “new internet.” Could this be true?
Imagine if the smaller weed growers could leverage the power of blockchain to form a defensive barrier against these conglomerates. Wouldn’t it be great if the small grower was protected from corporate greed?
Indeed, defending against patent infringement isn’t cheap. Medicinal Genomics is offering growers a way to protect themselves against patent litigation, through cannabis genetic sequencing. Beyond that, blockchain can provide the ideal platform to register a plant’s genetic makeup in an immutable ledger.