Blockchain technology has managed to lay out the foundations for new concepts within existing sectors, as well as to create a completely new world of possibilities due to its numerous advantages derived from decentralization and the resulting transparency. Multiple tech giants, as well as startups are already using blockchain for a variety of purposes in multiple industries – from fintech to big data to energy and even wholesale.
Another emerging industry that has also been deemed revolutionary today is making headlines. We are talking about the CBD sector, which has grown by more than 42% just between 2021 and 2022 and is forecast to reach a value of USD 47.22 Billion by 2028 at a compound annual growth rate of 21.3% (Source: VantageMarketResearch).
The explosive growth of the CBD industry is caused by the rising demand for CBD products due to their proven benefits and multiple use cases. Multiple studies have confirmed that CBD-based products can have a variety of health benefits such as stress relief, anxiety and depression treatment, pain management and many others. The increasing number of FDA approved CBD drugs such as the revolutionary EPIDIOLEX used to treat severe cases of epilepsy in children is yet another important factor that has also contributed towards the favorable regulation surrounding the sector.
But how does the concept of blockchain technology relate to the CBD industry exactly? What are the potential benefits and synergy effects between these two emerging sectors? Today, we are exploring some of the advantages of the novel technology that could potentially allow the CBD industry to expand its full potential.
Connecting stakeholders in the CBD industry directly
One of the many popular use cases of blockchain technology has been its implementation as a reliable method for direct P2P transactions of value without a middleman. This allows for a multitude of use cases, including the transparent transfers from one stakeholder to another without an intermediary party. Blockchain-based marketplaces, for example, can provide a higher degree of transparency for sellers and buyers and thereby improve their baseline conditions, making the transfer more profitable for both parties.
Improving the supply chain within the sector
Blockchain technology is well-known for its immutability and transparency, both of which can revolutionize industries that are plagued by inefficiencies caused by informational asymmetries and one-sided power in favor of the manufacturers and sellers. The CBD sector is no exception.
Blockchain technology can make the whole supply chain of CBD and cannabis-based products completely transparent to the end user. This will allow consumers to trace the origin of the product, ensuring its quality and that the claims of the seller are correct. Furthermore, this can also reveal any unethical practices of the producers, such as the use of questionable substances or practices in the process of manufacturing, unethical work conditions, unfair pricing and many others.
A transparent supply chain provides a better competitive environment and greatly diminishes the possibility of fraud and exploitation, both of which are still deeply rooted within multiple industries today that are of a considerable importance in terms of the products they output – including food and textile production.
Non-fungible tokens: a new world of possibilities for artists?
Another viable application of blockchain technology for the CBD industry that has only been explored to a fraction of its potential yet, is art.
An NFT is a blockchain token used to certify authenticity and ownership of a digital asset. The ownership of an NFT is recorded on the blockchain and can be transferred by the owner, allowing NFTs to be sold and traded. As the name suggests, unlike traditional cryptocurrencies like Bitcoin, an NFT cannot be subdivided. NFTs are mostly used to tokenize digital art pieces such as images, videos and music.
Non-Fungible-Tokens (NFTs) are a concept that has become well known to both industry stakeholders in the crypto universe, as well as beyond it. They created an industry that quickly skyrocketed to billions of dollars – from merely $82 million in 2020 to more than $17 billion in 2021, an increase of more than 20,000%.
By making concepts such as NFTs easily attainable and profitable within the CBD sector, artists can potentially unlock a new way of monetizing their work by both having access to a wider audience and a more fair way of remuneration without the need of intermediary parties.
Qoomed launches the 420.work NFT marketplace
Qoomed has become a well-known project within the CBD space for creating one of the very few cryptographic tokens focused specifically on the CBD and cannabis industries. The company was the first to introduce a marketplace for CBD products with crypto payments that not only connects sellers and buyers directly with each other, but also provides a multitude of innovative tools for other stakeholders in the industry such as dropshippers that allow them to thrive within the sector.
Another initiative by Qoomed is their newly founded 420.work platform, which is the first NFT marketplace that is specifically focused on art pieces in the cannabis industry. Artists can mint, list and sell their own NFTs directly, much like on traditional NFT marketplaces. The platform charges variable royalties in the native QOOMED token that vary anywhere between 10% and 15%.
The 420.work marketplace is live – some of the hottest NFTs in the CBD industry right now are already for sale. You can connect your Metamask wallet directly within minutes and start minting, selling and buying. Make sure to check out the current listings here: www.420.work.