Organize and catalyze the cannabis industry
Budbo is an online platform that leverages blockchain and cryptocurrency to deliver features and services to organize and catalyze the global cannabis industry. The British Virgin Islands-based company sees itself as potentially the focal point for a community of healthcare professionals, researchers, farmers, patients, businesses, as well as government agencies operating in a fractured industry and fragmented but has enormous potential for growth and opportunity.
The challenge comes from the almost revolutionary speed with which the cannabis landscape has changed. Governments at all levels, and around the world, have moved from complex laws and regulations on cannabis and a plant component, cannabidiol (CBD), with strict compliance enforcement, to legalization (in any form whatever) and even encouragement. This sparked a thriving industry of seed for sale. This industry includes seed growers and their suppliers, global shipping, product dispensaries, delivery systems, a mini-boom in medical research and product development and, of course, the recreational user market and medical. In fact, the legal cannabis market in the United States could reach $43 billion by 2025.
The explosive growth has been accompanied by problems, including uncertainty about the origin, crop type and chemistry of many products. This also affected their predicted effects when ingested or inhaled by users of different ages and health statuses. Government regulations differ by jurisdiction (state to state in the US) and what they are trying to control and how. These problems stem from a lack of research on plant strains and products as well as gaps in knowledge of the supply chain of a given product, from seed production to commercial preparation, including the manufacture of CBD products.
After a high-profile start about five years ago, with half a dozen founders — and the adoption of blockchain and cryptocurrency — Budbo crumbled in legal battles. His long-awaited return with a new website came in 2020. Since then, he has created and refined what seems to be his flagship product: version #2 of his platform, a mobile application to find, inquire, compare, but also order cannabis strains and products (Project Phoenix).
Blockchain-based Budbo features and services
For consumers, the platform offers “search” or “match” functionality for thousands of products available locally to the searcher. Budbo uses blockchain to track and verify the supply chain of cannabis breeds and strains from seed for sale. This includes seeding, growing, drying, shipping, preparing for retail, and other steps. It could also address issues of unknown or misrepresented sources and handling of cannabis and CBD products.
The platform allows you to place an order to be collected from a given supplier, usually a dispensary, or to be delivered. A wallet built into Budbo is used for security and ease of purchases. The Budbo token ID is BUBO and the token standard is ERC20. Budbo Tokens will be the digital utilities providing access to the Budbo platform and its services and will support transactions within the Budbo community.
The Budbo protocol layer is Ethereum, the second most valuable cryptocurrency blockchain after bitcoin. It has generally received praise for its programmable smart contracts. Its scaling challenges, such as slow transaction speeds and high costs, may not bother Budbo as long as it remains a startup. The consensus mechanism is proof of work. The Budbo token, introduced about four years ago, went out of business when the company got embroiled in legal battles; it was reintroduced about two years ago. It peaked almost as high as $10, but is now trading near a low of $0.02.
Chain of Custody
Backed by blockchain, Budbo’s tracking apps are advertised as providing unprecedented visibility into valuable shipments. Shipment tracking will include all stages from the farm warehouse to the manufacturer or a fleet of retail delivery drivers. To do this, mobile and electronic on-board recorders will be integrated with blockchain-powered telematics solutions.
By 2025, some 5.5 million Americans, or 2.4% of adults, will have registered as patients in medical cannabis states. Budbo will use the blockchain to provide an immutable record of research results related to the chemistry of cannabis and CBD products, dosages and their effects, clinical studies on the health effects of use, as well as the efficacy and side effects for medical use. Entry to the platform will include access to this blockchain database. By using BUBO as a universal API key, Budbo’s cannabis industry ancillary services, such as laboratories and testing facilities, will be able to store sensitive data on Budbo’s immutable ledger.
Verification of patient identification on the Budbo platform has impressive potential to support prescribers and users of medical cannabis products. The United States Food and Drug Administration (FDA) has approved cannabinoids for the relief of these conditions. This includes severe epilepsy, nausea, vomiting caused by cancer chemotherapy, and anorexia associated with weight loss in people with AIDS. And there are other examples. Medical prescriptions allow patients to obtain these products reimbursed by health insurance. Recreational users purchase the same products often at significant cost.
The potential for fraudulently obtaining products can be countered in a number of ways as states pass legislation. To take just one example, the California Department of Public Health created a medical marijuana ID card program system to issue a state-authorized medical marijuana ID card and to mount a system online verification. State systems allow law enforcement and the public to verify that a patient or primary caregiver has permission to “possess, grow, transport, and/or use marijuana for medical purposes in California.”
Each state that legalizes “adult use” of cannabis and its derivatives has a different approach to compliance. With a blockchain ledger for transactions ranging from buyer identification and credential verification, to a purchase and delivery record, Budbo offers medical marijuana prescribers – and compliance agencies State – a potentially centralized site with high security against insurance fraud, including such pervasive issues as using an ID card past its expiration date.
Another potential of Budbo’s blockchain ledger that could serve prescribers of medical marijuana and its products is verified information about a product’s chemical composition, dosage impact, as well as other basic data. research data on physicians’ decisions to change a patient’s prescription or authorize a new order.
For Budbo, there’s a ‘Wild West’ up for grabs
The speed and scale of the cannabis industry’s growth along with the change in the United States alone (and Budbo’s ambitions are global) speaks to the potential of Budbo’s application of blockchain technology. Players in the legalized cannabis scene (dispensaries, producers, shippers) have emerged with few “organic” organizations or self-monitoring systems. Much of the legalized cannabis scene is experimental.
But it is the black market in cannabis and CBD products that could drive the growth of Budbo and its services and features via blockchain and cryptocurrency. A widely referenced report indicates that 141 million American adults live in 18 states that allow “adult use” of cannabis. This represents about half of the annual demand for cannabis in the United States satisfied by legal purchases in regulated markets. This, however, leaves a huge black market with an estimated $65 billion in annual cannabis demand and consumption. Both legal and illegal markets are growing exponentially.
It is the “ecosystem” that Budbo has set out to tame. Secure online shopping, verified delivery pick-up and drop-off, authenticated product event lifecycle, urgent medical patient identity verification issues, and a strong database of relevant research, all backed by blockchain technology, give Budbo its edge.
So far, the only vehicle to invest in the future of Budbo is the BUBO token. It has proven its volatility, to say the least. The markets have started to offer them again.
The founders of Budbo seem passionate about their mission in this market. They fought hard to regain legal control of their essential ideas and technologies. Their pairing of blockchain and cryptocurrencies with the challenges of the legal and illegal cannabis markets seems like a promising marriage.
It’s a small startup in a field with great potential, with powerful technology. However, investing now requires accepting the volatility and risks of the cryptocurrency market. The alternative is to observe this new company – far on the technological curve in its field – and decide when it will reach the ideal point to invest.
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