In the United States, several states have legalized recreational sales, cultivation, distribution, manufacturing, and use of Marijuana, or other cannabis related products. This economic boom has created growth within several industries, many of which are encountering difficulties when dealing with vendors across state lines. Since the production and sales of marijuana are still illegal on the federal levels of government, many businesses are searching for new ways to purchase or sell items that are vital to the success of these growing industries, without hindering efforts to remain transparent within their respective state governments.
Some of the major concerns that state lawmakers and businesses share:
- Transparency - While businesses would like to remain transparent with State Governments, they looking for a way to remain anonymous with the Federal government.
- Protection - Many businesses within these industries have traditionally been forced to only accept cash payments, since federal laws prohibit large financial institutions from servicing these accounts. As a result, businesses make large cash payments to State governments, which pose potential threats to both the business and the government agency.
- Corruption - Decentralization can help to prevent many forms of corruption, especially when most in the industry are battling the stigma and current public awareness that these businesses are trying to reform.
With DERO's decentralized blockchain, paired with Smart Contracts, a bridge of trust and transparency can be forged within industries and governing bodies. Use of private Smart Contracts can help businesses comply with "Track and Trace" requirements, reduce threats involving the movement of large amounts of cash, increase transparency with local governments, and provide a clear trail of financial records recorded on the blockchain. Another bridge can be formed between the customer and local businesses, providing a safe and private transaction space.
How does DERO's privacy equate to transparency?
First, transactions can be as private or public as how you make them. Private keys are meant to be private, but when dealing with exchanges you give up some of that privacy (from a security standpoint) in order to participate in trades. When dealing with the government, keys can be stored or logged in the case of audits, to ensure that the business that the keys belong to are in compliance. The Track and Trace program requires tagging and surveillance to ensure quality standards are met and the measure of cultivation and distribution efforts. With Smart Contracts and RFID tags, the entire program can be managed in real time.
With the help of DERO, a healthy ecosystem can be created that does not hinder productivity; rather, it empowers industries to operate with more transparency and protections, while minimizing the threats that come with cash-only transactions.