The interesting relationship between two rising industries

Creating a unified system

Blockchain, A scary name for a safe solution.

Your mind may immediately leap into the murky haze of everything that’s been reported on the over-sensationalized happenings of Bitcoin, but don’t be put off. Blockchain itself is indeed a complex technology involving fancy jargon such as cryptography, nodes, hashcash and plenty more, but in this article I’ll attempt to explain it in a way your parents could understand and illustrate the various ways in which blockchain, the foundation of the entire Crypto movement, can be applied beyond the mystical realm of cryptocurrencies.

Put simply, blockchain is a decentralized, digital ledger in which transactions are recorded in a public and chronological order. Oftentimes the technology of Blockchain is hailed as the most secure, immutable record keeping medium — ushering in the era of decentralised information sharing.

But why? Why is Blockchain so safe? Why should we trust it? and.. What the f**k is it?

To comprehend the applicability and sheer brilliance of blockchain requires a simple understanding of its functionality. Lets go basic. We’ll start with defining what a ‘block’ is. Within the Bitcoin model, a block simply represents a batch of transactions. For example, John sent Mary 12 Bitcoins and Mary sent Sue 5 Bitcoins. Each time a transaction occurs, it is written into one of these ‘blocks’ — or if you prefer, a line in the digital ledger. However, in order for this new line (block) to be accepted, it must be verified by the hundreds of thousands of other computers and users on the network. This is another part of the beauty of what blockchain technology allows for, the removal of the trusted middleman (banks).

This verification process works through cryptography — essentially either a super-computer or super-nerdy math whizz solving really intense coding problems to ensure the transaction actually occurred, with the first person (or machine) to solve this being rewarded with Bitcoin. Each time a new line or block is entered into the blockchain, it is linked to the next in a similarly complex and cryptographic manner — hence the term ‘blockchain’. The more transactions that occur within the network, the longer the chain becomes and hence the more difficult solving the code becomes.

The real beauty of the chain comes in its immutability and security. That is, once a block is written and verified, it is almost impossible to retroactively change it. To rewrite, or hack, a singular block in the chain would require a person, or literally all of the computers in the world (potentially more) to rewrite every single link in the chain. Doing so would require a colossal amount of computing power and energy to power those computers, some cost estimations for which exceed $2.5b USD in relation to Bitcoin.

Power to the People

So now we have a technology whereby information relating to transactions is stored piece by piece on thousands of computers around the world and in not one central place controlled by a single entity. Pretty cool, right? Power to the people. Beyond the sphere of Bitcoin and other currencies, the applications of blockchain technology as a decentralised, super-safe and basically non-hackable centre for information are almost limitless.

Why Cannabis?

Now that we have the basics of how the technology works — let’s examine its applicability and practicability to another nascent industry — cannabis. On a global level attitudes towards cannabis and its medical and recreational use are changing. Current legal cannabis operations are thriving, and fuelling incredible growth in the legal cannabis sector. However, the budding cannabis industry faces a myriad of problems, many of which can be soothed with the use of blockchain based technologies.

The major problem facing most market participants in the Cannabis market are financial. In the US especially, where federally cannabis is illegal, many states have chosen to defy the government and pass medical/recreational standards that better reflect that states cannabis position. This leads to some grey areas of legality that are especially troublesome in the financial area. Creating a market of legal cannabis businesses choosing to operate in cash, due to very real risk of government seizure of financial assets, among other difficulties such as federal penalties and challenges with access to banking services. This has created a huge sector of businesses with a need for decentralized banking.

On a wider global scale, cannabis has a sticky stigma associated with it, owing to a rich and clandestine history of black market dealings. Many financial institutions steer clear of putting their money behind those dealing in pot, even in a legal manner. So, where will cannabis companies get funding for their projects, accept payments and so forth?

The obvious answer is cryptocurrency, its safe secure, and removes the risk of federal intervention, or the logistical nightmare of privately storing copious amounts of paper money.

Keeping it legal

Although state and federal regulations of medicinal and recreational marijuana have certainly reduced black market activity, the lack of coordination between states in the US as well as a lack of internationally adhered to regulations provides impetus for black market participants. Where you have dodgy dealings, you’re gonna have some dodgy records too by the not-so-honest parties. Let’s say I own a medical marijuana growing site. My buddy Brandon says that he can hook me up with this real shifty dude called Simon down in New Jersey (where weed, still illegal, sells for about 80% more than it sells for in my legal territory). All I need to do is cook my books, say I grew a little less than I really did and boom, I’ve got some money on the side.

But what would happen if there was a global mandate for all growing information to be stored and verified through blockchain? Remember our simple definition at the start of this article — a publically available digital ledger in which information is immutably stored in chronological order. All of a sudden it seems pretty hard to bullshit the authorities.

Parsl wants to unify the cannabis industry

Parsl using blockchain, and their own token named SEED, will solve a multitude of the legal cannabis industries problems.

SEED tokens, lay the groundwork for moving towards a cashless ecosystem, decreasing the amount of cash businesses have to deal with, and the hope to eventually operate on a completely coin based ecosystem.

Smart packaging and blockchain, will decrease illegal back door sales, and provide a clear history of products provenance. If you grew eight plants and sold 6, where are the other two plants? Accountability will be clear and definitive.

Safety, the platform will be able to notify users/sellers of any quality/safety issues found with a product. Currently there is little that can be done if a product recall is necessary, if a product is found to contain pesticides or other harmful contaminants for example.

Create a community where people can share experiences, reviews, and help educate one another to create a more informed and connected cannabis industry. Users can help other users find products they like, as well as provide feedback to dispensaries, processors, and growers, allowing feedback and communication across the entirety of the supply chain.

Thanks for reading!

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