Wednesday, June 6, 2018

BLOCKStrain CEO Outlines Blockchain’s Potential Role in Cannabis

By Ryan Allway
Source: cannabisfn.com

Blockchain technology is disrupting the shipping and supply-chain industry by offering smart logistics that are cheap, efficient, transparent and protect intellectual property. BLOCKStrain is one such company, targeting its platform to more than 5,000 craft growers in Canada and upwards of 50,000 in California. Investors may want to take note ahead of recreational-use legalization across North America.
In an exclusive interview, CFN Media recently spoke with BLOCKStrain about its innovative platform and how it works.
BLOCKStrain Technology Corp (TSX-V: DNAX) recently went public on the TSX Venture exchange under the ticker symbol “DNAX” after many years of preparation and dedication toward building a premier software company serving the cannabis industry.
What is the Blockchain?
The term blockchain has been popularized by the rise of Bitcoin, but there’s a lot more to the technology than speculative currency. While cryptocurrencies rely on blockchains to verify transactions, the same technology can be applied to many different industries that require verified transactions. The shipping-and-supply-chain industry is perhaps the best example, but other verified transactions could include medical records, identity management, or even voting records.
At its core, a blockchain is a list of records where each record contains a cryptographic hash of the previous block, a timestamp, and transaction data. The difference between blockchain and traditional ledgers is that the blockchain is inherently resistant to modification (e.g. corruption) and it’s able to be read (e.g. verified) easily by the public. These attributes are highly desirable for many industries that want cheap, efficient, and transparent transactions.
Apply Blockchain to Cannabis
There are many companies that have launched cryptocurrencies within the cannabis industry. After all, the lack of access to traditional banking has left a void that digital currencies are well-positioned to fulfill. But, the potential for blockchain technology in the cannabis industry extends beyond consumer transactions to the supply chain, especially with more than 5,000 craft growers in Canada and more than 50,000 in California, alone.
Suppose that a craft grower partners with a licensed producer to market a new cannabis strain. The craft grower provides mother plants to the licensed producer, who agrees to mass produce and distribute the new strain and pay a licensing fee. Now, suppose that the licensed producer launches its own similar strain a few months later and suddenly stops paying licensing fees, claiming perhaps its strain is different and not the one from the initial mothering plant. How does the craft grower know that the licensed producer didn’t steal the proprietary strain? The blockchain where that identifying data is being held will unlock the answer, thus bringing a verifiable truth in the event of future disputes.
BLOCKStrain (TSX-V: DNAX) was created to address these issues by harnessing the benefits of blockchain technology. With an open and agnostic platform, the company’s technology utilizes the benefits of blockchain and enables growers to protect and license their products and see the visibility of supply chain logistics in real-time, without having to worry about larger players stealing their genetics or failing to pay them licensing fees that they’re owed.
How It Works
BLOCKStrain began by partnering with licensed testing facilities, streamlining the lab process and reducing administrative red tape. For every batch of product that is processed through these facilities, a blockchain transaction is created, thus becoming a unique identifier that is used as the product passes throughout the supply chain, and every partner that interacts with this identifier along the way can be sure that it has received the correct product. The process also reduces the overhead associated with traditional testing, which involves a lot of paperwork.
Craft growers know when the product has been sold and if they are due a licensing fee, while licensed producers can reassure their customers that they are receiving the correct product and that it has been tested by a licensed facility and is safe for consumption. Regulators can also just as efficiently verify that products have been tested before they’re sent to market, using the same blockchain record, thus reducing the headaches of paperwork or non-streamlined electronic records.
Looking Ahead
BLOCKStrain Technology Corp (TSX-V: DNAX) represents a compelling opportunity within the rapidly growing cannabis industry. With a platform that appeals to craft growers, licensed producers, consumers, and regulators, the company could quickly become a leader in cannabis supply-chain logistics. Management also remains committed to growing shareholder value over the long run, and ultimately becoming a dominant player in the space.
“To investors, we promise to work tirelessly on their behalf and for the long-term growth of BLOCKStrain, ensuring this is the best tech company in the sector, and one that provides you with a solid and sound investment,” said CEO Robert Galarza.
Investors may want to take note sooner rather than later as this stock only recently began trading on the TSX Venture exchange.
For more information please visit the company’s website: http://blockstrain.io
Disclaimer 
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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