Security Matters, a firm listed with Australia’s securities exchange just filed for a patent in the United States for a cannabis supply chain system running on a blockchain. The proposed blockchain system would be able to track cannabis plants and products and manage the supply chain. The news was reported by ZDNet on 3rd September.
The company listed on the Australian stock exchange but operates out of Israel, highlighted the scope of the patent. The patent covers a proprietary chemical solution that the company has developed which can be used to “mark” cannabis plants at any stage of production, from the seed to a full-grown plant.
Security Matters is now commercializing its chemical solution that can be used as a barcode. The concealed solution leaves a mark on any material, in any physical form, solid, liquid or gas. The company has highlighted that the solution can be used to track cannabis-based products and stated:
The marking solution can be applied to the seed or plant via a coating, irrigation, and fertilization method and is used for product authentication, supervision and supply chain management of the plant and plant by-products.
According to the patent, when scanned, the barcode reveals the corresponding data, which is then stored onto the blockchain. According to Security matters, the information on blockchain will make it secure and impenetrable, along with providing end-to-end transparency in the industry.
The CEO and founder of the company Haggai Alon, said that they are tackling two problems of the industry, tracking the origins of the products and tracking its eventual use, he said:
SMX’s technology has the ability to do this and can ensure both needs are met without the requirement for complex genetic modification or negative impact to the cannabis seed, plants, or plant products. This patent application supports SMX’s business model, to partner with global leading companies, and indicates our ability to create a digital twin from raw material to finished product.
The use of Cannabis as a recreational drug is banned in Australia, while it can be used for medicinal purposes. The legality in the United States also varies from state to state, however, many politicians have called for the ban to end. It has proven medically that Cannabis is a harmless drug, and is safe for recreational purposes.
Both the Cannabis as well as the blockchain industry are in hot waters right now as both of the industries are being seen as a threat by majority and the regulatory and legal uncertainty of both industries is also similar. The industries face an uncertain future, making the amalgamation of both a major risk. However, if fit pays out, the payout will be immense.
Even though Cannabis is legal in selected U.S. regions, it has shown some major economic activity. In the state of California, Cannabis is legal and the industry is growing at a rate of 18.5% which will make it a $5 billion next year in total market capitalization.