BitCanna aims to solve a problem that has plagued the cannabis industry since its initial development. The likes of Visa and MasterCard refuse cannabis businesses access to their services due to the legal status surrounding marijuana. Now that this legality differs throughout countries in Europe, industry leaders find themselves operating in grey areas. BitCanna plans to solve this problem by offering a decentralised blockchain network purpose-built for the cannabis industry, offering services to both consumers and businesses.
WHAT EXACTLY IS BITCANNA?
Currently, companies working in the cannabis industry are forced to pay higher than usual fees or make deposits/payments in cash due to the regulations surrounding banks, credit card companies, and payment providers. Even if marijuana is legal for medical use, if it is still prohibited recreationally, business are forced to act in this manner.
BitCanna’s design brief aims to offer transparency throughout the cannabis industry, offering a safe and secure means of placing and verifying transactions. All underpinned by the ability to view the activity taking place (without compromising personal details), government regulators can learn to trust and work with the cannabis industry and its key figureheads. BitCanna plans to offer efficient, low-cost services that regular providers currently cannot.
WHAT IS CRYPTOCURRENCY AND WHAT ARE POSSIBLE BENEFITS?
Cryptocurrencies operate in the digital realm, with no physical coin or token available—a distinct difference from mainstream financial institutions. Being decentralised, no single organisation has control of your currency. Instead, users store their chosen cryptocurrency in a digital wallet. Every user on the blockchain has access to a digital ledger, an online record of all the transactions taking place on that network. Complex encryption is utilised to protect transaction details, as well as users’ unique private key—a digital signature that verifies it was you that authorised a transaction.
You agree on an amount of your chosen token in exchange for a service or product, and the blockchain keeps a record of that transaction, therefore knowing how much currency each user has. Cryptocurrency is typically earned by solving mathematical problems, or by purchasing tokens from a person or organisation in exchange for fiat currency.
The use of a blockchain usually incurs transaction fees; BitCanna plans to offer instant transactions with no additional fees. A unique, but beneficial selling point designed to encourage more users to adopt the blockchain.
For cryptocurrencies to be successful, people need to use the blockchain network. The decentralised nature of blockchains means users need to verify other users’ actions to guarantee the integrity of a transaction. Often, this is the reason why many cryptocurrencies do not attract mainstream success. BitCanna has a solution for this as well—the BitCanna Alliance. By getting leading businesses in the cannabis industry to use and maintain the BitCanna network, the chances of widespread adoption are increased. These industry figureheads include: Royal Queen Seeds, Zamnesia, Cibdol, Amsterdam Genetics, Zambeza Seeds, House of Smart, Vertafort, All In 1 Grow Caps, and Boerejongens, among others!
Each of these businesses will offer payment modules, accepting BitCanna coins (BCNA) as soon as the service is available. This is a well-developed strategy on BitCanna’s behalf. Combined, the companies have over 10 million unique visitors to their websites alongside 30,000 transactions per month. Not only will these companies endorse the use of the BitCanna network, they will act as a powerful marketing tool. Successful blockchain networks rely on gaining as many users as possible, and having these companies as backers provide the means to do so.
Furthermore, BitCanna will look to these companies for feedback so that the network provides functions that both cannabis consumers and companies need to operate and trade successfully.
ALL ABOUT BITCANNA
Being purpose-built for the cannabis industry with a confirmed list of companies backing them, BitCanna displays the hallmarks of a successful business strategy. The entire network’s functionality is built around providing services and features that both customers and businesses will benefit from.
For consumers, the ability to track transactions to the source, whether that be a supplier or seed producer, will provide transparency. Knowing what you are getting and who you are getting it from will instill confidence in new and current cannabis users. A unique rating system, with each rating verified by other users of the network, will negate the risk of fraudulent product reviews. Development of mobile app functionality will allow payments to take place instantly with zero fees. Furthermore, the ability to create a unique BitCanna ID removes the need for users to provide their personal details when visiting dispensaries.
UNDERPINNED BY DEVELOPING TRUST
Companies will have a means of operating within local regulations, while still using the cost-efficient services provided by BitCanna to conduct their business. Blockchain ledgers are immutable; as a result, government institutions wanting to tax marijuana business properly would be able to do so accurately. It would encourage both parties, governments and marijuana companies, to work together to develop legislation. The cannabis industry is a multi-billion dollar market, with major growth projected for 2018/19.
Within the industry, all stakeholders will be able to view the production, transportation, and financial flow of the market, enabling every business owner to approach the industry on a level playing field. The expectation is that more businesses will be enticed to join the network as a result.
HOW DOES THE BLOCKCHAIN WORK?
Built on a proof of stake consensus protocol, the blockchain will be open-source. Users of the network will have to stake their tokens (BCNA) against verifying new blocks and transactions. Based on the token amount they staked, a payout will be rewarded for genuine transactions. Every user has a vested interest in the success and maintenance of the legitimate ledger. The business roadmap has clear goals and timescales. Layers 1 and 2 of the blockchain are finished, both of which will enable the main net release in Q4 of this year. Further functionality, including the ability to track purchases and a unique rating system, will launch with later layer releases.
The journey to full release includes marketing support from the companies listed in the BitCanna Alliance, while coin distribution and multiple wallet solutions are considered. For the cannabis industry to flourish, there needs to be a long-term financial solution that benefits all parties involved. A sound business strategy, clear roadmap, and industry support all point to a promising enterprise from the team at BitCanna.