DMG Blockchain, a diversified blockchain company, announced on Wednesday a platform for cannabis supply chain management called Wazabi. Consumers, large distributors and retailers, and (DMG Blockchain hopes) governments will have the ability to purchase Wazabi certified products from Wazabi marketplaces.
What is a Wazabi Certification?
A Wazabi certification guarantees products are produced in a legal licensed facility and all regulatory reporting has been met along the supply chain. Wazabi Certificates of Analysis (COA), which show exact product composition, are tamper proof as the original COAs are posted on their blockchain and visible to all.
DMG Blockchain expects Wazabi to solve key issues in the global cannabis supply chain, which include a lack of trust & transparency across the ecosystem, fragmented non-interoperable technologies, lack of timely market insight, and regulatory compliance validation.
How Does Wazabi Work?
Wazabi is based on Hyperledger Fabric, an enterprise-grade distributed ledger framework emphasizing transparency and immutability through a permission blockchain. Hyperledger Fabric is hosted by the Linux Foundation.
Furthermore, Hyperledger Fabric is open source and does not require a mining consensus to complete transactions. This allows the framework to be implemented without necessitating a large pool of processing power.
What Does It Bring to Enterprises?
Wazabi provides an irrefutable single source of truth in terms of all data. The cannabis industry currently utilizes various seed to sale, ERP, logistics, shipping, warehousing and point of sale systems, none of which can talk to each other without significant custom development work which becomes arduous and costly to maintain.
When a product changes custody along the supply chain, Wazabi tracks the transfer and ensures that government regulators, seed to sale systems, and POS systems can view where each batch of cannabis is located and how it got there. In other words, this data is then stored on an immutable and transparent distributed ledger.
DMG’s CEO Dan Reitzik commented “…Parties provide information with their digital signature so you know the information is from the respective parties. In a supply chain with two or more parties this becomes extremely effective in providing transparency. Similarly, it also fosters trust while also reducing system integration costs…This modern platform is built to allow for easy integration into other modern platforms. It also facilitates and accelerates global cross border shipping and resale of edibles through the supply chain of large retailers.”
DMG Blockchain plans to monetize the platform through charging producers a few cents per gram for Wazabi certification. In addition, there are commissions earned on products sold wholesale through their marketplaces. Likewise, other cognitive platforms, Wazabi’s success depends on the adoption of its product by producers, retailers, and government entities.