Blockchain has gained some attention as an emerging technology that can disrupt a few industries in recent years. Industry segments include music and streaming, government and education, and banks and financial institutions. We can visualise the power of blockchain by referring to the Internet just a few decades ago and how far we’ve come today.
Businesses in the cannabis industry are already taking advantage of blockchain opportunities. In their emerging industry, supply chains, payment systems, and transaction tracking are proving to be challenging. With blockchain technology, startups are poised to revolutionise the way they carry out their operations and sell their products to consumers. Today, there are many blockchain solutions available to businesses in the cannabis industry. Now let’s look at blockchain solutions for cannabis.
AN OVERVIEW OF THE EUROPEAN CANNABIS INDUSTRY
Cannabis restrictions are rapidly being removed in Europe. There was a significant upward trend in Europe during the months preceding 2020. In November, the European Court of Justice ruled that CBD (Cannabidiol) is not considered an opiate under EU Law, enabling the European cannabis industry to flourish. A few weeks later, the UN declared the plant no longer to be on Schedule IV of the single convention. In the end, all European nations except Hungary came forward to support the motion, recognising marijuana’s importance in medical fields.
The European Nations’ demonstration of integrity on cannabis legalisation has resulted in many parts of Europe adopting the plant sincerely. French news outlets covered the pilot medical program to bring patients treated by cannabis to France. Medical cannabis was not easily accessible in Switzerland but is now easily found there. In addition, Switzerland is set to legalise adult-use marijuana soon. By 2027, the European cannabis market will reach US$36,997.1 million, up from US$3,498.1 million in 2019. It is expected to increase 29.6% between 2020 and 2027. A major factor in the growth of this market is the overhauling of clinical cannabis guidelines and the development of the cannabis industry.
CHALLENGES FACED BY THE CANNABIS INDUSTRY IN EUROPE
One of the major obstacles to the cannabis industry is the disintegrated regulation. Many European countries have legalised cannabis and made it available for sale. There are many countries in Europe where it is illegal to possess marijuana or transport it. This results in transparency being broken. The cannabis market in Europe is commonly referred to as the ‘Dark Market’ or the ‘Shady Market’. Due to the disorganised working framework, neither the government nor the financial institutions were involved. The result is all kinds of challenges for consumers and businesses. The cannabis industry in Europe faces several challenges, including the following:
THE PRODUCT’S ORIGIN AND QUALITY ARE UNKNOWN
Cannabis is illegal to produce and transport in Europe. The producers conceal the source of origin of the product. It becomes increasingly difficult to trace the origin of the product as it moves through the supply chain. When there is less information about the product’s authenticity, it becomes more difficult to verify its quality. Thus, the companies focused on product quality fail to provide proof of the quality. The situation does not promote fair business, as other companies may benefit from it. They advertise that their products are of superior quality in the market, but they sell low-quality goods. As a result, the customers feel cheated, and their trust is broken. Most of these scams happen online because customers can only verify the product by reading online reviews and checking ratings. A false rating and review on the web can manipulate buyers into purchasing the product.
LACK OF SUPPORT FROM FINANCIAL INSTITUTIONS
Financial firms and payment processors have backed away from providing support to the sector since it operates in the shadows. The manufacturers seek additional financial assistance. When you’re building an online business, payment processors are crucial. Using them, buyers can send money from their accounts to sellers’ accounts. When payment processors are absent, transactions become inefficient and costly.
ISSUES RELATING TO PRIVACY
The digital generation lives in a world in which everything is computerised. When a customer purchases a product online, he or she must provide the seller with certain details. Generally, this information includes the customer’s name, the address, the mobile number, and payment details. In the case of cannabis products, customers pay more attention to filling in their information. Unfortunately, customers are required to provide their details, even if it is not necessary. In addition, consumers are required to show an identity card when buying from a dispensary.
THE FOLLOWING DIFFICULTIES ACCOMPANY CONFLICTS IN CANNABIS LAWS:
– In the ‘dark’ area of law, organisations are compelled to operate in a restrictive way rather than working openly and straightforwardly.
– Payment processors cannot offer their types of assistance to legitimate businesses, so huge pieces of it struggle with wasteful and absurd exchanges. Additionally, many players need to figure out different methods of connecting with banks, resulting in a still-dark scenario.
– The process of interacting with cannabis is uncomfortable for customers.
HOW DOES COOP NETWORK SOLVE CANNABIS INDUSTRY PROBLEMS?
A COOP Network has been developed to address the current challenges facing the cannabis industry. The GEOMA DAO COOP aims to create the best answer to resolve these issues with a common purpose. They can accomplish this goal thanks to their collective skill. GEOMA DAO COOP is a drive-framed, decentralised partnership in the European innovative cultivating industry.
To resume reserved business, GEOMA DAO COOP anticipates regaining the trust of consumers, distributors, and financial institutions. Using a blockchain-based arrangement, the GEOMA DAO COOP plans to make business transparent and as transparent as possible. It will enable all parties involved in the chain to trace the product’s origins. In addition, the process and figures of the sales and the distribution of the product can be studied. It is a business model that will benefit both buyers and businesses. Its key objective is to eliminate wasteful and exorbitant exchanges by presenting decentralised digital currencies that are secure, extremely quick, and compliant with local laws. Furthermore, COOP intends to build trust by giving all participants a rating framework and by offering a special, encoded identity to all COOP users that cannot be falsified.
BLOCKCHAIN-BASED SUPPLY CHAIN MONITORING
Since blockchains have rigid data source bases, it is nearly impossible to modify information once it has entered the system. This system assigns a unique identity to each player in the supply chain, such as cultivators, wholesalers, research centres, and retailers. The total chain from the start of a token to its retail location can be recorded with this method. It can be verified that this chain of authority verifies the authenticity of the product. By doing this, users can make better sourcing choices.
APPLICATIONS TAILORED TO BUSINESS NEEDS
Businesses will use the blockchain to integrate their supply chain management functions into their own business applications. There will be a seamless transition for businesses, eliminating paper records by consolidating all information into a single location. In the COOP Network, inventories will be tracked and controlled at all stages of an item’s life cycle through a dedicated application with an easy-to-use interface. As a result, organisations can effectively control their production network, ensuring timely delivery of goods and preventing stock surpluses.
The COOP Network developed an application specifically for consumers. The customer can scan a QR code to get information about all the products in the supply chain, in addition to checking starting points, third-party quality tests, timestamps, sales areas, and customer ratings.
SUPPLY CHAIN TRANSPARENCY
Every day that the market grows, government controllers develop an interest and keenly observe it. Through COOP, a dependable market is created, which emphasises transparency. And it will be possible for all users to look at the monetary flow, transportation, and production of the market. It will also be relevant for other companies, such as manufacturers, wholesalers, distributors, transporters, and consumers. Since transparency will boost trust and responsibility, the network will likely be more effective than other supply chains within the same industry. The system will inspire the cannabis industry to attract numerous other organisations.
USING THE REVIEW SYSTEM
As part of the COOP Organisation, a rating framework will be added to ensure trust on the blockchain. From cultivator to the consumer, all parties involved in the supply chain can build their reputations this way. It will be possible to conduct genuine reviews with blockchain. This way, a customer can confirm whether a buyer is legit before making a purchase. The first application ensures that reviews come from a reputable source, and the second application aims to stop fake reviews. COOP ensures that the product reviews come from customers themselves. The blockchain’s transparency also makes it difficult for organisations to do fake reviews, which could be used to build their reputation or bring down competitors.
WHAT IS THE COOP CODE OF CONDUCT FOR PREVENTING FRAUD?
In recent times, numerous cases of cheating and trickery have been discovered. The issue of sustainability is of incredible importance to a cooperative from a social, ecological, and financial perspective. There is no preference in the COOP Network for one individual over another. The members are treated respectfully. In COOP, corruption and fraud are not tolerated. Upon joining, all members are informed about the codes of conduct. All members are notified when there are changes to the Code of Conduct. As a result, the International Co-operative Alliance established seven principles and values.
MEMBERSHIP IS OPEN TO ALL
Throughout the world, cooperatives are operating actively. A cooperative gathers all participants, regardless of their sex, caste, social or political preferences, who agree to abide by the participation rules. COOP offers all people an opportunity to become members, as COOP members, family, and friends with similar interests are not given preference.
PROGRESSION TOWARD DEMOCRACY
Cooperatives are democratic organisations. A fair voting system is used to elect representatives in the cooperatives. The rules and regulations of the cooperatives are complied with by every member. The organisations all strive for the same goal, just like any other organisation.
A cooperative needs funding to operate. So, in COOP Networks, each member contributes capital to the operation of the cooperative.
Typically, cooperatives are self-regulatory, independent associations governed by their members. The COOP always keeps its independence and autonomy in mind when it engages in dealings with other organisations.
EDUCATIONAL AND TRAINING OPPORTUNITIES
It is the cooperative’s responsibility to prepare its members, delegates, administrators, and workers for their role in their cooperative. Furthermore, they educate people about cooperatives and their advantages.
MEMBERS WORKING TOGETHER
It is possible to form cooperatives with people located in different places. The members remain united despite the border separation, never diverging from their common goal.
Cooperatives have formulated several rules and regulations to ensure sustainable development. In the COOP Network, members can work together on small projects for the good of their communities, with the agreement of the other members.
Some people must have had a fantasy dream of getting into the cannabis industry. Business ventures like this can also help people build wealth if they are carried out with systematic planning. Markets improve as each additional day passes. This blockchain has proven its worth by offering numerous benefits, including trade transparency and security. The COOP Network has opened doors to many businesses by introducing blockchain technology into the cannabis industry. A transaction now takes place with full transparency throughout the supply chain. Considering joining the COOP Network would be a good idea.
Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day! Live from the Platinum Crypto Trading Floor.
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