CBD LabChain aims to build consumer trust in products that use cannabidiol.
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…