DMG Blockchain Solutions Inc. (DMG) see yesterday’s recreational marijuana legalization in Canada as a big opportunity to integrate blockchain. Canadian cannabis companies are international distributors and an on-chain global supply chain management platform could shave millions, if not billions, from the entire vertical.
The Vancouver-based blockchain outfit is planning to launch the platform on the Hyperledger permissioned blockchain. While they are starting out with Canadian marijuana producers and distributors, in addition to 13 million recreational users nationwide, they have a vision of being the blockchain supply chain management system for all marijuana corporations across the globe.
Dan Reitzik, DMG’s CEO, told Bitcoin Magazine:
“Producers, distributors, retailers and regulators are waiting for a solution and don’t have years of experience with existing technology.”
DMG is currently negotiating contracts with major industry giants and associated regulators, to help ensure the blockchain solution is in compliance with strict legal requirements. Cannabis regulation has narrow margins for licensing errors and data vulnerability.
DMG isn’t the only tech company integrating blockchain solutions into various supply chains. This past year IBM and Walmart have partnered to track their leafy greens from farm to customer using Food Trust. The platform is designed to help improve transparency and issue recalls more easily in the event of a compromised end product. Other food industry megaliths like Tyson Foods Inc. and Driscoll’s Inc. have participated in the trial period since 2017.
Applying this same technology to cannabis is a huge opportunity for DMG and could set the tone for all recreational cannabis distribution. It will be easier to start these newer cannabis companies on-chain than it might be to convince an older company to switch supply chain systems.
DMG seeks to standardize global marijuana traceability with their platform on Hyperledger. The supply chain platform will also accommodate transactions and manage data related to license distribution, regulation, shipping, and retailers. The goal is an end-to-end blockchain-based global cannabis ecosystem.