Australian supply chain-focused technology company, Security Matters has announced that it has applied for a patent in the United States to securely manage and control the supply chain of cannabis through a blockchain system.
As reported on ZDNet today, the Australian Securities Exchange (ASX)-listed company stated that if the patent is granted, the firm would have the exclusive right to mark, track, and manage the supply chain of cannabis-related products, including cannabis plants, and other products containing cannabis-derived ingredients.
The scope of the patent as explained by Security Matters would cover the use of the firm’s chemical solutions, which will be utilized in the growth and cultivation of cannabis plants at any stage of their processing.
Security Matters also added that it had commenced sales of its personalized “marking” technology, which features a discreet chemical-based form of a barcode to mark any of its products.
The technology would help provide security, transparency, and quick identification of products, including solid, liquid, and gas products, by accessing the barcode of each product to reveal the product’s data on a blockchain.
In a statement made by the company and was issued to the ASX on Monday, the firm commented:
The marking solution can be applied to the seed or plant via a coating, irrigation, and fertilization method and is used for product authentication, supervision and supply chain management of the plant and plant by-products.
Reacting to the development, CEO and founder of Security Matters, Haggai Alon, stated that before now, cannabis-producing firms had two challenges – tracing the cannabis origin and monitoring the entire process of the cannabis production.
“SMX’s technology has the ability to do [solve] this and can ensure both needs are met without the requirement for complex genetic modification or negative impact to the cannabis seed, plants, or plant products,” Alon added.
Countries have placed embargoes on cannabis-related products because regulators regard the plant as one of the root cause of criminal activities.
For instance, while cannabis is legal in selected U.S. states, it is regarded as an illicit substance at the federal level and as such, declared illegal.
The product is also illegal in Australia, where Smart Matters is publicly traded. However, the medicinal use of cannabis is permitted in the country.
In October, DMG Blockchain Solutions Inc. (DMG) announced that it would develop a global supply chain management platform for the Canadian cannabis industry.