December 17, 2018

HempCoin: Blockchain for Agriculture and Cannabis

by Brennan B. in AgriTech
By 2021 the legal cannabis industry is expected to hit $25 billion. As the medical marijuana industry increases, so too will the need for secure, easy transactions. HempCoin (THC) was designed as a safe, convenient, and decentralized payment system. The niche-focused cryptocurrency is revolutionizing the agricultural, tobacco, hemp, and cannabis industry. THC coin is making transactions transparent and lightning fast.

How HempCoin is changing legal cannabis

HempCoin was created in 2014 and according to their website; they were one of the first 30 cryptocurrencies. It is based on PIVX blockchain code and they use Zerocoin protocol for privacy. Developers can contribute to this open-source software from anywhere in the world.

THC is traded on Bittrex and users can purchase goods and services from companies that accept the currency both in-person and online. HempCoin is also planning to offer three additional payment methods to make transactions even easier. HempPay Mobile, HempPay Online, and HempPay Card will be available between 2018 and 2019.

Who Uses HempCoin

Medical Cannabis Patients

Medical cannabis patients are one of many HempCoin users. Some legal dispensaries are starting to accept THC as currency. This has two main benefits for patients. The first is that they don’t need to worry about a paper trail for each transaction. If a person does not want to see a dispensary on their credit card bill, they would normally need to bring cash. The patient can instead trade Bitcoin for THC coins in order to pay for their medication.

Another benefit patients’ care about is cash-free transactions. Many dispensaries refuse to use credit or debit cards. Carrying large amounts of cash can make people feel uncomfortable. Having the option to pay with HempCoin creates a safer atmosphere. Once HempPay Cards are available, buying medical cannabis with THC, will feel like any other purchase.

Medical Cannabis Dispensaries

Dispensaries also benefit from cash-free transactions. Having large amounts of cash on site makes businesses more susceptible to robberies and employee theft.

Another benefit for dispensaries to utilize THC is for faster, less expensive transactions. It costs companies more money in fees associated with debit and credit than it would using HempCoin. If they only us Cryptocurrencies they can make every transaction more efficient.

Medical cannabis dispensaries can pay their marijuana suppliers using HempCoin. Many banks refuse to exchange fiat currency for these transactions, due to federal laws regarding marijuana. Using a cryptocurrency can clear up some of the red tape and save time.

Hemp Industry

The hemp crop is used in the production of beauty, household, and food products. In 2016, $688 million worth of hemp products were sold in the United States. HempCoin is expecting that this industry will grow once US restrictions are lifted.

Tobacco Industry

Including the tobacco industry in HempCoins target markets has opened up operations in all 50 states. With this inclusion, they can market to consumers in states and countries that have yet to legalize cannabis. Their main focus in this industry will be on head shops, cigar bars, convenience stores, and nightclubs.

Farming/Agriculture Industry

Agriculture is a trillion-dollar trade business. HempCoin is the only cryptocurrency being used in this industry. Currency conversion, money transfers, and financing are some of the biggest problems facing exporters and importers today. These challenges can be eliminated with HempCoin transactions.

By embracing the trends in payment technology, HempCoin intends on providing real-world banking solutions to the cannabis industry. They also want to give the farming and agriculture industry a more efficient way to trade goods and services.