DMG’s announcement coincides with Canada’s legalization of marijuana for recreational use beginning on October 17th. Previously, Canada recognized cannabis for medicinal use only. The cannabis industry represents $23 billion in revenue in Canada alone and has the potential to significantly increase via tourism from citizens of less tolerant countries hoping to catch a buzz.
The Canadian government lists 132-licensed producers throughout the thirteen territories that make up the country. DMG claims to have a first-mover advantage as the first global cannabis blockchain solution.
The Need for Provenance
As regulators call for accountability and transparency in the cannabis industry, emerging technology such as blockchain is taking the spotlight. Blockchain technology boasts the benefit of being an immutable public ledger of all transaction data. This helps cannabis companies operating on a blockchain to become completely transparent.
DMG aims to offer an all-in-one product. The product will allow users to view the origin of a product immediately, view all transactions between customers, distributors, and producers, and utilize auditing systems. This will lead to a much more efficient system that will reduce costs and provide a higher safety margin for customers.
Regarding benefits from blockchain integrating with supply-chain management in the cannabis industry, DMG’s CEO Dan Reitzik said: “The emerging cannabis industry demands product management solutions and blockchain is the most logical choice. We want to be the first to offer an enterprise-grade solution in partnership with leading technology providers and cannabis producers, processors and distributors. The first use of blockchain was bitcoin, but the perfect use is supply chain management for controlled products such as cannabis.”
Provenance is needed in the agricultural industry because producers haven’t been honest about what they’re spraying onto a product before and after harvest. This directly affects the cannabis industry since customers either inhale or ingest cannabis. In this sense, not only is blockchain a revolutionary use case for tracking products, but it can also be used to pinpoint where a product came from if it tests for harmful chemicals or bacteria.
The New Go-To for Supply Chain Management: Blockchain
The cannabis industry isn’t the only field to benefit from blockchain’s breakthrough technology.
IBM recently announced its joint venture with logistics giant Maersk to create TradeLense. The collaboration already has over 90 organizations utilizing blockchain to share shipping data and keep every transaction available to increase efficiency and lower costs.
Walmart has announced that it will require lettuce and spinach producers to input all records to a blockchain database to pinpoint outbreak and contamination zones. Since the food chain is not always linear, traditional methods for seeking contamination points can take a very long time, but Walmart realized that data on the blockchain can pinpoint the problem area within seconds.