With the current exponential growth of the cannabis industry, both medical and recreational cannabis firms have been forced to adopt cannabis tracking systems (CTS) to track quality compliance. Some hemp businesses have now improvised the idea to provide consumers with quality assurance using blockchain technology.
Cannabis laws in the US require players to adopt cannabis tracking systems, also referred to as seed-to-sale. As the name suggests, the systems monitor cannabis plants throughout cultivation, production, and distribution phases. A tracking system records all the tests and potency information to safeguard consumers.
While the same legal demands do not bound the hemp industry, many hemp businesses have realized the importance of a track and trace system. Some businesses have now come to rely on blockchain to provide their customers with quality assurance.
According to a report by the US Food and Drug Administration, hemp-derived CBD products have proliferated the market, with many of the products having far less cannabinoid content than advertised.
The prevalence of trust issues in the US CBD market has pushed a section of businesses to start tracking their hemp growth, production, and testing journeys for the benefit of consumers.
The CEO of American Fiber Company, James Brobyn, said in support of the FDA report that there is a trust deficit in the US market regarding cannabis-derived products.
Blockchain, the system behind Bitcoin, is a technology that can and has been implemented in a diverse array of industries to keep records of information in a decentralized digital system. The technology, which is almost impossible to hack or change, allows anyone worldwide to view its data in real-time.
A few hemp firms have enlisted the services of TagOne, a blockchain company founded in 2018, whose originators have years of experience in pharmaceutical tracking.