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Cannabis and blockchain are two industries that are undoubtedly shaking up the world. But the two have much more in common than just disruption; they’ve become movements that have gripping histories, honorable causes, and complex futures.

A Brief History — Founded on Utility

In 2008 Satoshi Nakamoto introduced the first cryptocurrency to use a blockchain: Bitcoin. One of Bitcoin’s greatest accomplishments was its ability to solve the double spending problem; this proved that the digitization, transaction, and validation of assets is possible. But the Blockchain movement kicked-off with the introduction of Ethereum in July of 2015. Ethereum is an open-source, public, blockchain-based distributed computing platform and operating system with smart contract functionality. Ethereum was groundbreaking because it provided a blockchain infrastructure that could be used by others to build decentralized applications. In short, the introduction of Ethereum enabled massive adoption and development of blockchain technologies.

Cannabis has been used as an agent for medical habilitation and euphoric high for centuries. In fact, records found in Ancient China suggest that the herb has been used since 2737 B.C.. However, it wasn’t until 2012 that cannabis became legalized in the states of Colorado and Washington; this inflection point served as a critical milestone in the cannabis industry. Since then, we’ve seen industry adoption in other states such as California and Nevada. And the recent announcement for the federal legalization of marijuana in Canada shows that entire countries are starting to legalize the plant.

Driving Principles — A Desire for Something More

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The cannabis and blockchain movements are both founded on distinct principles that have gained support from the masses and opposition from major institutions; both of these movements possess principles with socially conscious underpinnings.

Even before legalization, cannabis has been seen as an asset in holistic health and wellness. The holistic health and wellness connotations have been driven by the plant’s medical properties which include pain relief, anxiety mitigation, and disease-fighting abilities. Due to its healing capabilities, cannabis has also become a direct competitor of corporate syndicates, challenging Big Pharma’s monopoly as a medical provider. In fact, the rise of cannabis has led to companies like Randy’s Remedy, who are using cannabis as a new-age health and wellness supplements and topicals for pain alievement.

Blockchain has been praised for it’s distributed database, immutable records, peer-to-peer transmission and computational logic; these utilities have led to mainstream adoption, but, in reality, these are just byproducts of a much greater driving force. Blockchain was built upon the democratic principles of decentralization and transparency. A shared goal for many early enthusiasts is the eradication of third-party syndicates. By decentralizing transactions, increasing transparency, and providing optimal tracking solutions, blockchain has plans to redefine the roles of large banks and governments. Cypherpunks — somewhat comparable to advocates for cannabis pre-legalization — have led these efforts. Cypherpunks are spearheading the revolution and ensuring that founding principles remain intact.

Regulation

Both cannabis and blockchain are relatively new and have a significant impact on society. The government has made considerable efforts to introduce regulations in both industries. Furthermore, large syndicates threatened by these burgeoning industries are beginning to make attempts to encroach upon the space.

Regulations within the cannabis industry have been applied from cultivation to retail. In states like California, licensing regulations and stringent requirements are starting to bottleneck the industry. Without enough federally certified cannabis testing facilities, distribution is slowing. Moreover, companies in Big Pharma have begun acquiring marijuana patents. This move by Big Pharma has created a fear that the spaces will be monopolized and smaller business driven out. According to Ph.D. and independent patent agent, David Cohen, patent filers are targeting drug formulations, methods of cannabinoids-based treatment, and cannabis compounds in terms of how they engage with human endocannabinoid receptors. Among these companies are Monsanto, who have been rumored to monopolize the cannabis industry through genetic engineering.

When it comes to the blockchain, government agencies in the US are taking a “regulation first, business later” approach. As a result, there has been a major crackdown on the mainstream usage of cryptocurrencies (a byproduct of blockchain). Regulations are yet to be completely defined or enforced, but in the meantime, government entities are making it difficult for consumers to utilize cryptocurrencies for traditional brick-and-mortar purchases. The U.S. Securities and Exchange Commission (SEC) is also aiming to place cryptocurrencies under government purview as “assets,” deterring international crypto-companies from operating in the US. Yet, large-scale banking institutions like Goldman Sachs and Morgan Stanley who once excused cryptocurrencies as fraud, are now hiring blockchain developers in masses.

With increased regulation and deep-pocket players entering both spaces, the future for the cannabis and blockchain industries is complex. Patents, as well as regressive regulatory tactics from industry giants, are already threatening small companies and startups. But the beauty in this is that both industries were founded on progressive principles and are supported by active communities. Everyone from cypherpunks to our company, Orthogonal Collective is working to ensure society can reap the benefits from both cannabis and blockchain.