New blockchain platform will verify lab results for CBD products
Cannabis and cannabidiol companies need to manage their money and verify the product quality just like more conventional companies. Unlike conventional companies, these firms frequently choose blockchain to build their own business tools and processes because existing services don't always work for these new and growing market.
Blockchain startups are using the technology to help marijuana growers track products from seed to final sale (ParagonCoin), streamline the purchase process (Budbo), and serve as a payment solution for agriculture, hemp, and tobacco businesses (HempCoin).
One cannabidiol producer has turned to blockchain to improve consumer confidence in CBD products. No Borders Inc. announced the launch of CBD LabChain at the Blockchain 2019 Expo in San Francisco. This platform uses blockchain to track lab test results of CBD products.
No Borders CEO Joseph Snyder said this is the culmination of two years of work to identify a specific and current business use case for blockchain.
"This also will improve security and transparency in supply chain of CBD product," he said.
The Brightfield Group estimates that sales of CBD products will top $5 billion this year, a 700% increase from 2018. Brightfield predicts that by 2023 sales could reach $24 billion with the bulk of sales coming from chain stores, online, and natural food stores. CBD comes from the hemp plant, which is a cousin of the marijuana plant. CBD is a component of marijuana but does not cause a "high."
No Borders Naturals will keep all of its third-party lab tests on the platform. CBD LabChain will store tetrahydrocannabinol (THC), CBD, and other lab test data results and make those results available via a QR code. No Borders Labs also will offer CBD LabChain as a platform-as-a-service (PaaS) for other other CBD brands, extraction facilities, and wholesalers.
The platform was inspired by market research with medical professionals, fitness enthusiasts, and other consumers. No Borders Labs found that consumers have two somewhat contradictory concerns about using CBD products:
Fear of failing a drug test at work
Concerns about verifying a product's advertised amounts of CBD
FDA guidance is fuzzy here and state laws vary as well. No Borders Labs is betting that its "Results Guaranteed with Blockchain" stamp of approval on product labels will give consumers a standard for judging CBD products.
No Borders's goal is to use blockchain, IoT, and other technology in real-world business use cases. No Borders has subsidiaries that sell CBD products, dental supplies, and technology consulting services.
Read more: techrepublic.com