Following the legalization of the use of marijuana for recreational purposes in Canada, a blockchain and crypto company has stepped into the picture.
DMG Blockchain Solutions Inc. (DMG) has announced that it will develop a global supply chain management platform for the legal cannabis industry.
The new solution proposed by DMG is highly needed since the Canadian authorities have allowed the use of marijuana for purposes that are not medicinal. The 120 licensed cannabis producers in the country will have to solve supply chain issues or risk facing a period of scarcity.
DMG Blockchain revealed that it is currently carrying out negotiations with licensed producers, quality assurance labs, regulators distributors and other members of the newly legalized industry. This will, in turn, allow the firm to release the ideal cannabis supply chain solution,
The proposed blockchain-based supply chain solution will include features such as interoperation with legacy systems, onboarding of new participants, as well as a defective product recall.
Blockchain Will Be Ideal For Cannabis Industry
A popular theory is that blockchain technology can be applied in almost every field of human endeavor. The latest development in Canada has once again proved this to be true while DMG’s CEO Dan Reitzik confirmed this in the release.
“The emerging cannabis industry demands product management solutions and blockchain is the most logical choice. The first use of blockchain was Bitcoin (BTC), but the perfect use is supply chain management for controlled products such as cannabis.”
By DMG’s estimates, Canada’s cannabis industry is worth around $23 billion while only recreational consumers numbering 13 million people produce $6 billion in revenue.
This will not be the first time that blockchain technology is proposed as the solution to supply chain deficiencies. Sometime in July, the Commonwealth Bank of Australia successfully conducted an experiment where DLT was used to track shipments across borders.