In a press release published earlier today, DMG Blockhain announced that it will build a blockchain based supply management platform for the Cannabis industry. Using DMG’s platform, producers, distributors, retailers, shippers, regulators, and others in the Cannabis supply chain will be able to ensure product traceability, safety, and transparency when it comes to the Cannabis business. The platform is set to deploy in Canada first, and later expand globally.
What is DMG Blockchain?
DMG Blockchain Solutions Inc. is a Vancouver based company focused on mining services and applying blockchain technology to supply chains. There are two parts to DMG, one is maintaining a mining farm, and the other is helping business integrate with blockchain technology. Speaking to Dan Reitzik, CEO of DMG Blockchain, he said: “we host mining on behalf of third parties.” Working with past BitFury team member, DMG is able to provide MaaS (Mining as a Service) to customers looking to mine cryptocurrency without the hassle of setting up or maintaining the rigs themselves.
The other part of DMG Blockchain focuses on creating solutions for business with the use of Blockchain. One challenge with introducing blockchain to established businesses is that they already have a legacy system in place. According to Reitzik, DMG will “create a platform and tech that doesn’t require a change to their legacy system.”
Integrating With the Legal Cannabis Industry
One of the reasons the Cannabis industry is such a great opportunity for blockchain integration, is the fact that the whole sector is brand new. Canada will only now legalize recreational Marijuana nationwide on October 17th. Cannabis businesses do not have archaic systems that need to be integrated with, the industry is ripe for innovation and introducing blockchain platforms for transparency, traceability, and automation is a match made in heaven.
“The emerging cannabis industry demands product management solutions and blockchain is the most logical choice. We want to be the first to offer an enterprise grade solution in partnership with leading technology providers and cannabis producers, processors and distributors.” – Dan Reitzik CEO DMG Blockchain
Canada has three main criteria for the legalization of Marijuana: No black market, keep the product out of the hands of children, and ensure product safety. Keeping the product out of the reach of children is the retailer’s responsibility. However, using DMG’s blockchain platform, retailers and regulators will also be able to ensure the product is both safe, and trace exactly from which licensed producer it came from.
Building such a platform requires an enormous amount of work. That is why DMG’s technology partner already has experience deploying blockchain based supply chain management systems for Fortune 100 companies. It will be interesting to see how the development of such a platform will pan out. Legal Cannabis businesses and Blockchain seem like two industries that were meant for each other. Both face similar challenges with regulators, and both are disruptive to the status quo.