Blockchain are global, transparent, secure ledgers that are ideally suited for storing data that is valuable to many different collaborative and potentially competitive parties. Consequently, blockchains present immutable ledgers that anyone in the world can view and everyone can verify. They are perfectly suited for creating and codifying agreements – smart contracts – between members of the agriculture market, and first and foremost the cannabis ecosystem.
Blockchain technology enables the creation of smart contracts for pricing and trading future crops, as is currently done with other commodities like wheat, corn and oil. Of course, derivative products, such as options on futures contracts, are possible and likely, further expanding this financial market. Given that a grow operation may produce as many as five crops per year, we anticipate a large potential for trading activity.