Canadian Firm to Build Blockchain-Based Supply Chain Platform for Cannabis Industry
Diversified crypto and blockchain firm DMG Blockchain will develop a blockchain-powered platform to manage supply chains in the Canadian marijuana industry.
Canada-based blockchain and crypto company DMG Blockchain Solutions Inc. (DMG) has announced the development of a global supply chain management platform for the legal cannabis industry, according to an announcement published Oct. 17.
As reported by Canada’s national public news and information service CBC, the country’s government officially legalized recreational marijuana as of today. Cannabis was previously available only for medicinal use within the country.
According to Health Canada, there are currently over 120 licensed cannabis producers in Canada, where one of the top producers has already stated that labor shortages and supply chain issues could lead to scarcity soon after it becomes legal.
DMG is currently negotiating with marijuana industry players, quality assurance labs, distributors, and regulators about launching its cannabis supply chain solution in compliance with industry specific requirements. Among the planned capabilities of the new blockchain platform, DMG cites interoperation with legacy systems, onboarding of new participants, as well as defective product recall.
DMG’s CEO Dan Reitzik said that “the emerging cannabis industry demands product management solutions and blockchain is the most logical choice,” adding that “the first use of blockchain was Bitcoin (BTC), but the perfect use is supply chain management for controlled products such as cannabis.”
According to statistics provided by DMG, the cannabis market is a $23 billion industry in Canada alone, while 13 million recreational consumers produce $6 billion in revenue.
Blockchain technology has been actively deployed in agriculture and food supply chains. Earlier this month, IBM launched its blockchain-based food tracking network, Food Trust to connect different parties in the food industry. During the trial period, which started August 2017, the company partnered with Nestle SA, Dole Food Co., Driscoll’s Inc., Golden State Foods, Kroger Co., McCormick and Co., McLane Co., Tyson Foods Inc. and Unilever NV.
Last month, U.S. retail giant Walmart and its division Sam’s Club announced they will require suppliers of leafy greens to implement a farm-to-store tracking system based on blockchain to “dramatically [improve] efficiency.”