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To increase the adoption & accessibility of cannabis products globally. BudBlockz will create an open platform for enthusiasts to analyze information and educate themselves on cannabis products and legislation.
Throughout the last decade, the marijuana industry has significantly improved in legality, consumer awareness, and profits. Though many states and jurisdictions are yet to permit cannabis, the industry is thriving nonetheless. The regulations for serving cannabis have been tailored to suit larger corporations to dominate the market with minor competition. Corporations are funded by Wall Street and other corrupt markets.
The current regulations for opening a cannabis dispensary can be proven extremely difficult for the everyday entrepreneur to become compliant with. The regulations in the industry are Licenses, Seed to Sale tracking, Production regulations, and Delivery laws. Different jurisdictions abide by different regulations, this can make operating difficult when transporting and storing stock.
In addition to this banking will continue to be a challenge because cannabis companies within the U.S. cannot legally access traditional banking services. The majority of merchant bank services are denied by cannabis companies. Similarly, the popular payment processor Paypal is also reluctant to work with all but the largest cannabis companies. The majority of dispensaries only accept cash making them susceptible to robbery.
On Dec. 15, 2021, the Federal Reserve announced that it will raise interest rates, making it harder for cannabis companies to raise capital for future growth. Opening a dispensary can be costly for entrepreneurs. A business license to grow could cost up to $100,000, not including the application fee.
Some jurisdictions require the business owners to have $250,000 - $500,000 in liquid capital before applying for a business license. Creating the inevitable of larger corporations with higher amounts of capital dictating the market and regulations, ultimately keeping the profits within their circle.
A common difficulty faced by entrepreneurs opening cannabis farms or dispensaries is raising capital. Using De-Fi users can borrow and lend capital in order to help complete the financial checkpoints of their journey. De-Fi has an advantage over normal bank loans, the decentralized nature allows for Improved Loan Speeds, Transparency, Permissionless, and Consistency. BudBlockz are developing De-Fi products to allow BLUNT holders to access crypto lending.
The majority of jurisdictions permitting the sale of cannabis require the business to have seed-to-sale tracking data, to give regulators an understanding of the quantity being released into the market. Each plant is tagged with a barcode from the seed and tracked each step of the way. Tracking data for each plant can be difficult, all information about the plant needs to be recorded. Businesses can face severe penalties for failing to produce this information. Tracking information is also required when shipping the product to users, businesses must record the amount of cannabis sold, price, collected or delivered, and to which individual. Regulators need to be certain the business is not providing the product illegally, all tracking information needs to be kept on file for a minimum of three years to avoid regulatory penalties.
Providing solutions using blockchain technology BudBlockz utilizes blockchain technology to overcome challenges faced within the market, involving our community with the developments and sharing the opportunity of ownership within the cannabis industry. A blockchain is a decentralized, distributed and public ledger that is used to record transactions across many computers. The decentralized nature of blockchain grants the database immutability, allowing information to be stored on file for years without corruption. Blockchain technology has proven to be the most secure database for storing sensitive data.
BudBlockz is a cannabis ecosystem currently built on Ethereum, a blockchain that holds over 18% dominance within the crypto market and is currently one of the most popular chains to develop decentralized apps and smart contracts. The most common programming language used to develop on Ethereum is solidity, a well-acknowledged programming language amongst developers. Making it simpler for BudBlockz to expand the technical team, develop new applications, and maintain existing code.
BLUNT is an ERC-20 token, ERC-20 is a standard protocol on Ethereum's blockchain for fungible tokens. Permitting BLUNT to be interchanged for other Ethereum-based assets and provide a simple route into the ecosystem. BudBlockz wallet and NFTs will be created on the Ethereum blockchain.