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5 Ways Cannabis Brands Can Use NFTs In 2023

How To Integrate NFTs With Your Cannabis Brand

Blockchain technology is changing our society as we know it, and I encourage you to see the forest for the weed. Cryptocurrencies and NFTs are starting to impact how brands communicate their stories to their audience. The internet currently functions like a sponge – trading consumer data for services. The new internet will be different because it focuses on relationships and community. The new system is decentralized and powered by the people. There is no central financial dictator pulling all the strings. The new structure could benefit the cannabis industry in many ways. Dagga has come up with 5 ways blockchain can be integrated with the cannabis industry. 

Digital Strains 

Do you love cannabis enough to pay for a digital bag? The fact is, we are in a virtual age where digital items can be just as valuable as their real life counterparts. You might not be able to smoke, vape, or eat a weed NFT, but you can exchange the NFT for actual medicine if you live in Oregon or California. Lava coins, for example, can be exchanged for real cannabis. According to Forbes “Jessie Grundy is selling what he believes is a world-first: a bag of cannabis that exists only online, linked to blockchain technology for “authenticity”.  Called “Lava Coin,” the digital bag is available anywhere in the world. And, unlike most marijuana in most other places, it’s also legal anywhere in the world. You can’t smoke it, but as a bonus, if you do buy the “the first digital cannabis strain ever available,” and if you are based in Oregon or California, you also get some “real” physical cannabis aq“The future is coming and blockchain will continue to be intertwined into society,” Grundy said during a recent interview. “This digital cannabis strain will live on the ledger forever, and its physical counterpart makes it one of a kind.” The Idea of increasing the value of a physical asset by creating a digital counterpart on the ethereum blockchain is why cannabis brands should take advantage of this new trend. It’s a solid marketing strategy, but also a cool, secure way to buy cannabis. Vertically integrated brands can increase the monetary value of their products by creating digital versions on the ethereum blockchain. Who’s the next cannabis cultivator to plant digital cannabis seeds? 

Banking 

There is no denying that the banking problem for cannabis and CBD brands are disappointing to say the least; although, there is hope due to the Marijuana Banking Amendment being “formally attached to a large-scale bill dealing with innovation and manufacturing” as stated by Marijuanamovement.net. 

PotCoin (POT) was the first coin to plant the cannabis crypto seed in 2014. “The uses of Potcoin are intentionally limited to those related to cannabis; to focus on the industry’s need for banking services and consumers’ desire for private transactions.” Crypto is powered by the people, the value of the coin will increase as more brands in the industry adopt it. Cryptocurrencies are emerging with popularity. If cannabis businesses adopt a Crypto like potcoin or cannabiscoin the value of the coin will increase because it’s being utilized for a specific function. 

Authenticity and verification 

Cannabis and hemp testing challenges continue in several legal states. Strict testing regulations and potency demands from customers have put pressure on producers and laboratories to get specific results. This issue can lead to fraudulent (COA) documents, but NFTs might be a solution.  MJ Biz Daily reported, “In November, Boca Raton, Florida-based ACS Laboratory, which tests both cannabis and hemp, launched a certificate of analysis (COA) as an NFT during the Art Basel Miami Beach art fair…The company partnered with Blockticity, which bills itself as a “leader in guaranteed certificates of authenticity for the most valuable of possessions,” to offer the testing COA on the blockchain.” Testing labs should consider the prospects of greater authentication of test results with NFTs. 

Prohibition has made it impossible for cannabis breeders to track genetics. NFTs could serve as a means of registering strains so that there is a time stamped, digital record that cannot be altered, to show who is  the “first” in creating a particular cultivar.  Growers could integrate NFT QR codes with inventory tracking systems and practices to guarantee genetic origin. In doing this our industry would have a virtual database of genetic history stored on the blockchain. 

Additionally, flower and processed products such as concentrates, edibles, and topicals could have a NFT QR code attached to the packaging to verify authenticity. Federal prohibition perpetuates the problem of counterfeit products on the black market. 

 Exclusive Social Groups 

The most popular cannabis NFT series  is “The Crypto Cannabis Club”. The NFTs in this collection are created by code to insure a one-of-kind design. By owning one of their NFTs you become a member of an exclusive club immediately. (The collection is sold out on the creator’s domain.) The club will host exclusive activities such as growing competitions. The power of NFTs is on full display here. Since they cannot be replaced – it serves as a way companies can create subdivisions of interactions between a brand and a NFT owner. For example your cannabis brand could offer special promotions, events, and activities to NFT holders. The relationship between customers and brands would be stronger than ever. 

The Metaverse 

According to Mark Zuckerberg the metaverse does not exist yet. Well this is not completely true. We might be in the propagation stages of the metaverse, but digital worlds do exist today. The Sandbox, Decentraland, and Cryptovoxles are the most popular virtual worlds at the moment. They are classified as play-to-earn (P2E) video games, where users’ gameplay progress earns them rewards in the form of cryptocurrency. NFT assets can be displayed and traded on these platforms as well. The way it works is players create an avatar with an option to connect a crypto wallet. Players play games that are created by land owners who buy the land from the developers of the game. Each digital world has its own “land cap” which is a limit of voxels total in a digital world. The developers sell this land to players who are able to create games, host events, and lease the land to other players. It works like land in real life. For example if you own digital land in a video game you could fully edit and customize your plot to feature branded NFTs that work as display advertisements. 

Do you understand how big this is yet? 

Justin Bieber performed a live concert with motion capture technology on the game “Fortress Night”. It was his first metaverse performance. 10.7 million people participated in the event. I’m sure your wheels are turning now, if they weren’t already.  Digital real estate in these digital games might be just as valuable as your website domain one day. “Land sales in the metaverse has topped 500 million and is projected to double this year” according to CNBC. The ability to market on a this interactive level will generate billions for the early birds who invest in this trillion dollar opportunity. 

Skeptics

Many critics view cryptocurrencies as Ponzi schemes and consider them a form of gambling. Some people go as far as to say that cryptocurrency is fake decentralization. These are the same people who thought  the internet we have been using the last 10 years was going to flop. 

We do agree the cannabis companies must tread with caution. The risk of breaking state compliance is high, so we urge cannabis brands to read the fine print to see if their state allows certain blockchain projects. Metaverses have their own set of rules as well that seem vague and are not cannabis specific. CBD brands have more leeway due to the 2018 Farm bill, but state licensed facilities must understand that the scheduling status puts them at higher risk. 

Conclusion 

Our society has a strange way of evaluating positive and negative change. Cannabis is federally illegal in the United States, but over half of the country has legalized it in some way. The cannabis community and industry aim to destigmatize cannabis. As the infant industry continues to develop, companies must seek to evolve with the times to achieve the goal. Blockchain technology has transitioned the internet from data vultures into decentralized communities. Normalizing both of these new industries will lead to an abundance of human success.