How Blockchain Technology Is Disrupting The Cannabis Industry

The cannabis industry has grown tremendously in recent years. Colorado and California are leaders of recreational cannabis use on the western side of the United States, and 2018 saw the legalization of hemp production through the Farm Bill, legalizing CBD nationwide.


But rapid growth in an industry that’s already underregulated can be tainted with poor-quality products, knock-offs, and outright deception and dishonesty from people without the best of intentions for whoever’s on the other end of the transaction. How can consumers and business owners alike be sure of the cannabis product they’re receiving?


Blockchain technology has been making waves for its potential to restore one of the things a lot of people do not have when it comes to the cannabis industry: trust. But before we get into blockchain and its ability to turn the industry on its head, let’s learn about what blockchain actually is.

What is blockchain?

According to IBM, “blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network”. In basic terms, it’s a digital ledger that tracks assets from point A to point B. Assets can be anything of value from intangible items like patents and branding to tangible items such as property and currencies. And, of course, CBD.


Blockchain can provide real-time tracking for cannabis products from seed to sale, providing a sense of trust, transparency, and security in an industry that could use it. CBD and other cannabis products and businesses face an uphill climb because of the stigma and misinformation surrounding it.


Even legitimate and honest businesses often don’t have the support and resources available to businesses in other industries simply for their association with cannabis. Blockchain technology can boost the legitimacy of cannabis. Here’s how it’s currently disrupting the industry.

How Blockchain Technology Is Disrupting Cannabis

Ensures the safety of cannabis products.

Despite hemp being legal in all 50 states and a number of states having recreational and/or medical marijuana legal, the cannabis black market is booming. Unfortunately, so are the negative effects that come with such an industry. In 2019, vaping caused dozens of deaths with a number of the victims being THC users.


With blockchain, all information about the product is recorded, starting from cultivation. This gives cannabis retailers and business owners the opportunity to learn about the strains of cannabis they’re purchasing and ensure that all products are consistent in quality and safe for public consumption.

Offers real-time tracking.

If you’re familiar with blockchain capabilities, you’ll know that it’s a fast technology. It’s commonly known for nearly-instant transactions with cryptocurrencies like Bitcoin and Ethereum, and that lightning speed works for cannabis too. Having instant access to the location of products not only provides real-time information but it can cut down the time required for problem-solving. If there’s a shortage or a product defect, this can be located on the ledger within seconds.

Provides proof of compliance.

Because hemp legalization and the cannabis industry are still fairly new, there’s a lot of room for error, particularly on the part of the business owner or farmer in terms of not meeting compliance or following procedures. And it’s not out of the realm of possibility for someone to be up to no good and tamper with products at this stage too.


Blockchain not only records activities and paperwork, but the ledger is also time-stamped. So, if any issues arrive, you now have concrete proof to present your compliance should you need to in court.

Consumer faith in products.

Because there’s full transparency with blockchain, consumers have access to all the details and specifics of the CBD or cannabis products they’re purchasing and using. For instance, claims from a cannabis company about their products having superior quality ingredients or going through certain processes can easily be verified via scannable codes and other technologies instead of relying on old-fashioned blind trust.

LBC CBD Does Blockchain

LBC CBD is proud to announce that we’re going into beta by end of year by integrating blockchain technology into our operations. Along with some of the aforementioned benefits, our goal is to continue to provide the best CBD products and encourage people to live well, and if blockchain is going to help us do that better, then we’re here for it.


We use clean ingredients like camphor, tea tree oil, black charcoal, and, of course, high-quality CBD from FDA-certified farms. And soon, you’ll be able to validate all these claims yourself on a digital ledger.

Another great article on blockchain can be found here.


Ready to try CBD and experience it for yourself? Shop our products and see what the CBD lifestyle is all about.


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