Blockchain Technology Offers a Solution to Cannabis Quality Control
December 14th, 2018
Exclusive, News, Top News
The Canadian cannabis industry is projected to reach C$22.6 billion over the coming years, according to Deloitte, following the legalization of adult-use cannabis earlier this year. While early sales have been brisk, the industry faces key challenges with safety and quality control. Many consumers still receive the wrong strains, while companies continue to struggle to meet regulatory standards and complete the associated paperwork.
BLOCKStrain Technology Corp. (TSX-V: DNAX) (OTC: BKKSF) offers a solution to both of these problems by harnessing the power of blockchain technology. With a pilot program already in place with a licensed producer, the company’s platform is poised to provide genome-to-sale reassurances to breeders, cultivators, stores, and consumers that they’re receiving what they ordered.
Quality Control Issues Persist
The cannabis industry has long struggled with quality control issues. Since Canada’s MMPR was introduced in 2013, there have been a number of recalls and sanctions on licensed producers for tainted and/or mislabeled products. Mandatory testing standards have been implemented across the country, but many medical cannabis patients still complain about receiving the wrong strain and experiencing unexpected effects.
Many medical and recreational consumers seek out specific cannabis strains, but it can be hard to differentiate a pure-bred from a mutt. In fact, some research shows that upwards of one-third of cannabis strains don’t match their advertised genetics. Many hybrid strains sold under the same name by multiple growers are also different from a genetic standpoint, which can make it nearly impossible for consumers to know what they consume.
In the United States, the lack of federal regulations means that safety and labeling concerns are even greater. Many private growers use chemicals, like rodenticide, to protect their crops, which ends up killing nearby wildlife and could make its way into consumers. Some states have introduced their own regulations, but critics point out that the higher tax rates in these areas encourage consumers to go back to the black market.
As with the Canadian market, the U.S. FDA has consistently warned CBD makers and their consumers of inaccurate labeling. Several products labeled as CBD supplements didn’t contain any CBD at all, while others did not contain the levels that they claimed to contain. These problems are likely carrying over into the wider cannabis market, especially in states where there is little in the way of testing regulations.
BLOCKStrain Offers a Solution
Bitcoin’s dramatic rise and fall popularized the concept of a blockchain, but there’s much more to the technology than cryptocurrencies. Using its immutable ledger, BLOCKStrain Technology Corp. empowers breeders to genetically test and register their strains in a DNA database and license those strains to cultivators. Cultivators can turn around and prove the authenticity of the strain and the lack of contaminants to consumers.
On October 24, BLOCKStrain and WeedMD Inc. (TSX-V: WMD), a licensed producer and distributor of medical cannabis, announced the launch of BLOCKStrain’s blockchain-powered proprietary genome tracking software following the collection and registration of an initial batch of 40 proprietary cannabis DNA samples. The move makes WeedMD the first LP that can stand behind its products in a way that’s transparent and verifiable.
“There are so many reasons why you want to identify the precise nature of the plant you’re dealing with, such as ensuring consistency for medical reasons, but also because in recreational cannabis a lot of people know what they like, and they want to make sure they’re getting that same experience every time,” said Dr. Gina Conte, a PHD in plant genetics and co-founder of testing and research lab Lighthouse Genomics in British Columbia.
She says a combination of a genetic record and the blockchain verification technology developed by Blockstrain is critical to the future of the cannabis industry. “It’s like going to the wine store and buying a high-end Pinot Noir, and then you find out later it’s a cheap Merlot. I think by adopting Blockstrain and genetic testing, WeedMD is setting the stage for a level of Quality Assurance that the cannabis industry needs to have. They are an industry leading example that the rest of the industry will both need and want to follow.”
The launch could yield a valuable proof-of-concept and model for other similar arrangements with licensed producers or other cultivators around the world. In addition, the WeedMD program launch marks the start of tangible revenue and an initial look at the compelling economics of its business model. Investors could see additional LP agreements come online in the near future as the pilot program gains steam.
BLOCKStrain Technology Corp. (TSX-V: DNAX) (OTC: BKKSF) represents a compelling investment opportunity that leverages the power of blockchain technology to solve a key problem facing the cannabis industry. With a pilot program launched earlier this month with a leading licensed producer, investors may want to keep an eye on the stock for additional agreements down the road as the company proves out its business model.
For more information, visit the company’s website or download their investor presentation.
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: https://cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.