Joint venture Cannachain Technologies would leverage blockchain technology designed to achieve unprecedented seed-to-sale provenance, safety and efficiency for the legal cannabis industry.
Emerald Health Therapeutics, Inc. (TSXV:EMH) (OTCQX:EMHTF) and Emerald Health Sciences, Inc. (together, “Emerald”) and DMG Blockchain Solutions Inc. (“DMG”) have completed a letter of intent to form a joint venture, to be named CannaChain Technologies (“Cannachain”), to develop a foundational blockchain-based supply chain management system and e-commerce marketplace for the legal cannabis industry.
From Licensed Producers, through testing, distribution and other steps, to the consumer, the cannabis supply chain includes many touchpoints. CannaChain’s supply chain management system platform will aim to provide total transparency and assurances for end consumers about where a cannabis product came from and regarding an array of related attributes. The platform will also assist in ensuring adherence to Health Canada reporting requirements. By logging each step along the supply chain on the blockchain – a decentralized, timestamped, and unhackable digital ledger – this ground-breaking platform is expected to provide an irrefutable record outlining the journey the product has made, from beginning to end.
“There are notable new applications of blockchain technology to validate and assure the source, quality and integrity of products such as diamonds, wine, and art, along with coffee and other food products,” said Avtar Dhillon, MD, Executive Chairman of Emerald Health Therapeutics. “Cannabis is also a prime industry in which to apply blockchain supply management based on the broad spectrum of plant and growing attributes, as well as product innovation potential; the growing trend of medical and in some cases recreational legalization, with the need for licensing as well as high security and confidence; and the possibility to start off such an initiative with relatively small groups of pertinent stakeholders. Canada’s established experience with medical cannabis regulations also lends it to new innovation in areas such as supply chain operations.”
In this joint venture, Emerald would provide its expertise and relationships as one of the earliest Canadian Licensed Producers under Access to Cannabis for Medical Purposes Regulations. DMG Blockchain Solutions, a blockchain supply chain management solution developer and leading crypto mining hosting provider, would build and deploy a blockchain supply chain management solution designed to meet the challenges and opportunities of the cannabis industry. The Cannachain solution is intended to provide extensive plant, growing, third-party testing, and handling data, and offer enhanced trust of origin, quality, and safety based on blockchain’s ability to maintain immutable records as cannabis products flow from seed-to-sale through the supply chain. The solution would serve relevant stakeholders including producers, distributors, shippers, government agencies, and consumers.
Adrian Glover, DMG’s Director of Software Engineering, commented, “Supply chain management for cannabis is an ideal use case for blockchain’s tamper-proof ledger technology. We are excited to partner with Emerald and, through the formation of CannaChain Technologies, to provide such an integral solution for the Canadian medicinal market.”
The parties also intend that Cannachain would develop an e-commerce marketplace based on the blockchain-based supply chain management system to facilitate the sale of a broad product selection backed by unprecedented supporting data and trust.
CannaChain’s supply chain management platform will leverage an existing open source blockchain platform, enabling cross-industry collaboration capable of supporting global business transactions with major technology, financial, and supply chain companies. These tools will enable smart contract functionality, imperative to the automation of trust. Regulatory reporting requirements would be automated by the platform, making for a seamless, supply chain management solution for Licensed Producers.
The parties intend to commence negotiation of definitive documentation relating to CannaChain and the development of the supply chain management solution. Key terms such as ownership of the joint venture, fees and commissions have not been finalized at this stage. Development of the supply chain management solution will not commence until after final terms have been settled and definitive documentation has been executed.
credit:420intel.com
