DMG To Create A Blockchain-Based Supply Chain For The Legal Cannabis Industry In Canada
In a press release they published on October 16, the DMG blockchain announced that they would build a blockchain supply management platform for the cannabis world. To do this, they will open the DMG platform to distributors, shippers, retailers, regulators, and other parties in the cannabis supply chain. This will ensure that it is possible to trace products to ensure safety. The platform will first be deployed in Canada and expand globally after that.
Understanding The DMG Blockchain
DMG Blockchain Solutions Inc. is a company based in Vancouver, Canada. It has a focus on mining services and using the blockchain in supply chains. DMG can be divided into two parts. One is the maintenance and mining farm. The other one is assisting businesses to integrate with the blockchain.
Dan Reitzik, the CEO of this company recently said that the company hosts mining on behalf of third parties. DMG Blockchain is working with a former BitFury team member to offer mining as a service to customers that want to mine crypto. The target is those that do not want to go through the hassle of setting up a mining rig on their own.
DMG Blockchain also has a focus on the creation of solutions for businesses using blockchain technology. The main challenge with introducing businesses to the blockchain is that they already have a system in place. The platform that the company is creating will ensure that businesses do not need to get rid of their legacy systems.
Getting Into The Cannabis Industry
A major reason why the cannabis sector shows so much promise for blockchain integration is that the entire sector is new. Canada plans to legalize nationwide marijuana use on October 17. The cannabis business does not have any archaic systems that will have to be integrated. This industry provides numerous opportunities for innovation. The introduction of the blockchain platform for traceability, automation, and transparency is a match created in heaven.
According to the CEO of DMG Blockchain, the emerging Cannabis sector demands management solutions for the supply chain. The blockchain makes the most sense. He said that his company would be the first to offer an enterprise-level solution in collaboration with leading tech provider and parties in the cannabis world.
Cannabis Legalization In Canada
In Canada, the criteria for legalizing cannabis are three-pronged. Firstly, they want to eliminate the black market. Secondly, they want to keep it out of the hands of kids and ensure the safety of the product. Keeping the product off the hands of kids is the responsibility of the retailer. However, with the blockchain is going to ensure the traceability and safety of the product.
Building this platform will require a lot of work. DMG chose a partner with experience in deploying blockchain-powered supply chain systems for Fortune 100 companies. It will be an interesting project to watch as it develops. Legal cannabis sale and the blockchain are two businesses that are perfect for each other. Both have challenges with regulators, and they are both disrupting the established order.