Because cannabis is still illegal at a federal level despite the growing number of states that have legalized its use for medicinal and recreational purposes, traditional financial systems like banks seem to turn their back against cannabis – which is quite understandable.
It might be true that no legitimate industry would want to be tied up with something that is deemed illegal by federal law, but blockchain technology and cryptocurrency can change all of that.
Blockchain technology has been increasing in popularity, thanks to its various applications – not only in cryptocurrency and NFTs but also in various industries like the cannabis industry. Blockchain technology has allowed many businesses to operate at lower costs with greater efficiency, and in this article, we will talk about its applications in the cannabis industry and more.
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- Cannabis companies rely on blockchain technology and cryptocurrency to allow for digital transactions that banks would often not allow.
- Cryptocurrency in cannabis can eliminate the need to accept only cash in dispensaries, leading to fewer theft crimes.
- Blockchain technology is not only exclusive to cryptocurrency and NFTs but can be applied for more efficient transactions in the cannabis industry.
- With cryptocurrency being more mainstream now, it could be an integral part of the cannabis industry in the near future.
What Is Blockchain, And Why Are Cannabis Companies Using It?
Blockchain technology is commonly associated with cryptocurrencies. However, this technology can extend to every sector of the economy, including the cannabis industry. It is basically an operating system that businesses use to conduct secure and traceable transactions throughout the supply chain.
Because blockchain technology works as a shared, immutable ledger that helps record transactions and track assets in a specific business network, it can reduce the risks and costs of operating a specific business. Note that blockchain technology does not only require digital tokens and cryptocurrency; businesses can also use it for digital cash as well.
Cannabis companies are using blockchain technology because of its many benefits, including transparency. And since bank transactions are not very popular in this gray area industry – cryptocurrency and blockchain technology is used to eliminate the need for cash transactions in the cannabis industry.
How Does Cryptocurrency Work In Cannabis?
Traditional financial institutions such as banks don’t really want to get their hands dirty, which is why not a lot of banks are associated with players in the cannabis industry – and that is where cryptocurrency comes in.
Instead of always transacting with cash, cannabis brands and retailers can now accept cryptocurrency as an alternative payment option. More and more industries are accepting cryptocurrency as a form of payment, including the cannabis industry – considering the rocky relationship between them and banking institutions.
Can Blockchain Benefit The Cannabis Industry?
Because blockchain technology is an immutable ledger that offers transparency, it can help not only the cannabis businesses but also the consumers.
All participants in the blockchain network can access recorded transactions and have all the information they need – including the characteristics of the cannabis product they are buying from seed to plant to extract and product. And this creates an extra layer of trust and safety between the buyer and seller.
Overall, it is an efficient solution for keeping track of records in most industries, including the cannabis industry. Various industries can benefit from the more secure and faster payment transactions that blockchain technology and cryptocurrency provide.
Benefits Of Cannabis Blockchain Payments
Blockchain payments can benefit the cannabis industry in many ways. Here are some of the benefits of blockchain payments in the industry:
Lower Transaction Fees
Unlike digital banking, blockchain payments have lower transaction fees, which benefit both the buyer and the seller alike. In addition, the process is faster than traditional payment methods.
Security And Privacy
Blockchain technology provides instant transactions and verifiable storage of data and transactions, adding an extra layer of data encryption to ensure the buyer’s privacy. It also provides an extra layer of security that can prevent fraud and malicious activities from happening.
Better Customer Service
With better and more accurate records of customer transactions, manufacturers can use this data to provide better customer service. Plus, companies can also create blockchain-based loyalty programs and other customer incentives that could further improve customer experience.
Many cannabis industry players use blockchain technology to protect intellectual property and unique strains. With the use of smart contracts and digital tokens, manufacturers, growers, and producers can protect their IPs and ensure that only authorized persons can have access to the strains they create.
In addition, smart contracts can also record and track purchases and sales of cannabis strains and secure genetic information for proof of ownership.
Regulatory Compliance And Safety Of Buying Cannabis Products
With the legalization of hemp and hemp-derived cannabinoid products, the regulations are left in the hands of the manufacturers – meaning there are not a lot of ways to ensure the product’s safety.
With that said, with the help of blockchain technology, retailers can benefit from a transparent and secure system for production and distribution. Blockchain technology provides a record of product movement from farm to dispensary, ensuring products are not tampered with.
With access to the entire blockchain network, manufacturers can keep track of products, such as crops, product characteristics, lab testing, consumer experience, and more, in a very efficient manner.
Protection Of Retailers
Cannabis dispensaries around the United States are taking in a lot of cash on a daily basis, which may lead to theft. Without digital banking solutions, retailers are forced to keep the cash in their stores or in their homes, which could put their lives in danger.
With an alternative payment method, such as blockchain payments, dispensary owners are safer without cash, which can attract crime.
Best Cannabis Crypto Site Online
If you are looking for a cannabis site that pioneered in leading the integration of cannabis and blockchain technology, Melee Dose is one of the first ones to think outside the box and accept cryptocurrency as payment – and we believe that it will not stop there. Here is an article that features Melee Dose Founder Swaroop Suri.
Pretty soon, blockchain technology will secure buyers and ensure that the cannabis products they are buying are safe and legal. With the use of blockchain technology, the future of the cannabis industry is in good hands, despite the gray areas and traditional financial systems that don’t show enough support.
If you want to buy cannabis products online using cryptocurrency, here are some of Melee’s best-selling products:
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Our White Peach – Mimosa Live Resin Gummies are the perfect mood enhancer. This sophisticated and playful treat combines a juicy peach flavor with a hint of bubbly champagne, igniting your taste buds. Enhanced with live resin HHC and Delta-9, these gummies will put you in the perfect mood.
The Grape Gushers Disposable Vape is jam-packed with just the right amount of cannabinoids and terpenes to produce an extra-flavorful and potent disposable vape blend. It is one of our best-sellers for a reason, which you can try right now!
If you prefer something on the stronger side, then these gummies are an absolute no-brainer. These one-of-a-kind treats feature a combination of four cannabinoids – Delta-8, Delta-9, Delta-10, and HHC – infused with terpenes from the Pink Candy Kush strain to deliver a powerful punch that will relax and soothe your body and mind.
If you are into sweet flavors that will remind you of chewy candy, the Strawberry Zkittles Disposable Vape is your best bet! It offers sweet mouth-watering goodness with a potent kick for a relaxing evening alone or with friends!
One hit out of this Watermelon Mimosa Disposable Vape will definitely make you feel like you’re on vacation and sipping mimosas under the sun on a distant island! Whether you are on vacation or not, this vape will take you anywhere you want to be with the power of its combined terpenes and cannabinoids.
Although the integration between cannabis and crypto is not at its peak yet, it is quite exciting to think about. The innovation of the cannabis industry does not only involve coming up with new ways to get high, newly discovered cannabinoids, and other exciting cannabis products – it is exciting to think about the financial aspect improving as well.
As the legalization of cannabis continues, thanks to states that have already voted for legalization and the Farm Bill of 2018 that legalizes the use of hemp products and cannabinoids derived from hemp, we can expect more applications of cryptocurrency and blockchain technology in the cannabis industry we all know and love.
Cannabis Crypto: Frequently Asked Questions
Can a Dispensary Accept Crypto?
Currently, there are not many dispensaries with a blockchain network that accepts cryptocurrencies as payment. But if many companies follow the steps of Melee Dose and see that crypto and NFTs are the future of cannabis companies, there will be a wider spread of brands and dispensaries that can help the integration of cannabis and crypto improve much faster.
What Crypto Can You Pay With?
Bitcoin is the most common type of cryptocurrency. However, other recognized cryptocurrencies like Ether, Cash, and Litecoin are accepted by most retailers that accept crypto as a form of payment.
Can You Buy Physical Things With Crypto?
Yes, with blockchain technology and cryptocurrency, you can not just buy intangible products. You can also buy physical things with crypto, such as cannabis, and cannabis products, such as the legal products that Melee Dose is selling.
Can You Put Crypto On A Card?
Yes, you can put crypto on a card. It works just like any prepaid debit card that you can use for making payments and withdrawals. However, not all banks support cryptocurrencies, and even if they do, there would be maintenance fees and withdrawal fees depending on the amount and bank you are using.