Startups

PotCoin: A Blockchain Platform For The Cannabis Industry

The cannabis industry has always been in the spotlight with the world split in to two with their opinions on it. The blockchain tech however, doesn’t seem to be so confused about it. You can now get high on pot through PotCoin.

PotCoin was established in 2014 and is a Canadian-based digital coin; it is basically an ultra-secure digital cryptocurrency, network and banking solution for the $100 billion global legal marijuana industry.

It is the first digital currency created to facilitate transactions within the legalized cannabis industry and is a community-based effort.

Cryptocurrency has been welcomed with open arms, mostly and it is due to the fact that they have acquired a place in the industry where the traditional banking fails to meet the requirements of the people it serves. The legalized cannabis industry, also known, as the marijuana industry is the perfect example of this; even though there are many states in the US that allow the selling of it, however they don’t allow an associated bank account to be set up. Which has the people at a disadvantage. The cannabis based cryptocurrency aims to target this niche market.

PotCoin Development

  1. PotCoin was launched on the 21st of January 2014 by three Canadian developers with the pseudonyms Hasoshi, Mr. Jones, and Smokemon 514.
  2. It shot into the limelight when former NBA star Dennis Rodman flew to North Korea with the sponsorship of PotCoin.
  3. It is a fork from Litecoin, with little difference to the underlying code structure, apart from a few key changes.

Key Features of PotCoin

Serves to a niche market

PotCoin was specifically designed to be utilized as a peer-to-peer and secure medium for all transactions pertaining to legal cannabis industry and all related products. Since the industry itself is widely perceived as murky in its nature, PotCoin solves this problem  by giving the cannabis industry its very own cryptocurrency, enabling it to perform transactions without scrutiny and censorship.

Integration outside the virtual world

PotCoin has been integrated into the transaction system of major Canadian marijuana growers and dispensaries.

Altruistic methodology

Medical marijuana patients receive free PotCoin for their cannabis related purchases, upon verification of their prescription.

A platform that gives back to society

The platform holds charity events routinely and thus gives back to the community by donating to the organizations which help push the community forward to fight for the legalized cannabis usage and consumption.

The benefits of PotCoin

Initially being a fork from Litecoin, the team made a few key changes including a significantly shorter time interval between generation of new blocks, a more aggressive halving schedule, and a higher maximum cap of the number of coins available.

Initially the PotCoin was following the Proof of Work (PoW) algorithm, it has switched to a Proof of Stake Velocity (PoSV) algorithm, which means that there are rewards for both, the ownership of Pot coins and the activity of clients as well. The PoSV algorithm means the entire network of mining of POT coins consumes significantly less power than pure Proof of Work based systems like Bitcoin. When a user stakes their coins, they earn an interest rate of approximately 5% annually and also contribute to the security of the blockchain by becoming an active node on it.

Recent events

Earlier this year in June, PotCoin had a huge spike in its price. The story behind that surge happened after the former NBA star Dennis Rodman wore a T-shirt emblazoned with PotCoin’s logo, during his trip to Singapore for the historic meeting between the US and North Korea.

PotCoin started trending online thanks to the exposure garnered by Rodman, who referred to the currency as his “loyal sponsor” — PotCoin paid for part of his trip to Asia for the historic summit between Kim Jong Un and President Donald Trump. Ironically, marijuana is illegal in Singapore, where the maximum sentence for smoking marijuana is the death penalty.

Currently, 44 companies are listed in their dealer directory and further expansion is planned.

Read the whitepaper here.

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Abeer Anwaar

Abeer holds a Bachelors degree in Media studies and covers blockchain startups for BlockPublisher. An optimist, excels in the art of the written word and swears by the joy of all things sweet. Email: abeer@blockpublisher.com or contact the editor at editor.startups@blockpublisher.com

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