How BitCanna Is Built: Layer 2, The Decentralised Ledger
As our series continues, we move past the protocol that underpins the foundation of how nodes will interact, and explore the concept of layer two, the decentralised ledger. By offering a payment platform that is free from the clutches of institutions or central banks, the use cases are far-reaching. Read on to discover why the cannabis industry needs BitCanna¹ now more than ever.
The Cannabis Industry Desperately Needs A Viable Solution
To understand how impactful the use cases for BitCanna will be, summarising the major problems faced by the cannabis industry is necessary. Marijuana as a sector of business is moving at an incredible rate. Rapid expansion is occurring in nearly every corner of the industry. Although regulation and legislation change on a country-by-country basis, the rulings defined by central banks and payment authorities remain the same.
The majority of transactions associated with cannabis are prohibited, significantly affecting consumers and businesses. The services that banks do offer come with significant fees and counterproductive stipulations. Current financial services for the cannabis industry are too slow, too expensive, and unsupportive of a growing business. The combined impact of these factors is severely hampering the cannabis industry’s ability to prosper and develop into a thriving, trusted commercial force.
Layer 2: The Decentralised Ledger
Utilising distributed ledger technology (DLT), layer two represents the core of BitCanna’s functionality. The ledger is public, accessible by every node on the network, and immutable. It cannot be altered unless the underlying protocols have been adhered to and the majority agrees on the new copy of the ledger. Operating as a decentralised, trustless network, the very principle of DLT syncs with the ideologies behind the cannabis community.
While making a profit is, and will always be, the determining factor of a thriving industry; the values that companies, consumers, and influencers agree on will still drive the overall direction of an industry. The cannabis community has long been stigmatised, forced to operate around legal loopholes and without the support of government institutions or financial services. As such, the very nature of blockchain technology plays into the heart of the cannabis industry. It too operates outside of central banking control and is not governed by political legislation. The partnership between blockchain networks and the entire cannabis community is a natural and necessary evolution.
What Uses Does A Trustless Payment Platform Have?
Enough about the concept and ideals of BitCanna though, how will it benefit consumers, merchants, manufacturers, and everyone in between, in real-world scenarios?
Let’s start with consumers, the demographic who will make up the bulk of the active nodes on the network. BitCanna functions without borders, meaning peer-to-peer transactions can be sent with minimal fees, no matter the location or amount. Add in the benefits provided by master nodes and near-instant transactions on a blockchain become a reality, not a concept. It is worth noting that even Bitcoin, the world’s most established cryptocurrency, can only render between three and seven transactions a second.
The same low transaction fees experienced by consumers will apply to any business operating in the cannabis industry. Paying suppliers, purchasing raw materials, or processing large invoices will not be met with the crippling regulations enforced by central banks. One current issue faced by many nations that have legalised either medicinal or recreational cannabis is the question of tax. How is taxation on the cannabis industry going to be monitored, reviewed, and defined?
The Advantages Continue To Stack Up
The ledger is accessible by any connected node. That includes regulators and financial institutions. While they will not be able to control the network, they will be able to review transactions. Having access to the entire industry enables a level of transparency that current technological systems cannot offer. Most traditional mechanisms cannot even match the efficacy of blockchain tech unless an incredible amount of resources are used (IT infrastructure, energy, validation, etc.) Business owners and industry figureheads would be uniquely positioned to have direct input on future regulations. Tax calculations could be made accurately, rather than relying on the paper trail many companies use now because cash is their only option.
The wealth of benefits listed above make BitCanna a potent tool, but only if it is actually used. BitCanna’s second layer operates a proof-of-stake consensus. Nodes must stake BCNA tokens to be able to validate blocks, thus receiving a reward. The reward not only acts as the incentive for taking part in the network, but protects the integrity of the blockchain ecosystem. Block rewards are only issued based on legitimate transactions being validated and submitted to the decentralised ledger. Any attempt to authorise fraudulent activity would leave the user worse off. You know what they say, crime doesn’t pay. On the BitCanna blockchain, it really doesn’t!
Whether you are a mainstream consumer, a fledgling business, an established seed producer, or an industry figurehead involved in shaping future regulations, layer two of BitCanna provides a cost-effective, near-instant service that will build and grow with the cannabis industry, rather than against it. It puts financial power back in the hands of the cannabis community, replacing the need for central banks.
If anything, the only downside to BitCanna’s concept is the limited currency supply. As the blockchain develops, the release of new coins will be slowed to scale with the size of the network and the demand for services. By operating in this way, it is possible to provide a stable token value, rather than the extreme fluctuations that many cryptocurrencies currently experience. By adopting early, contributors stand a better chance of profiting as the token value evolves.
- BitCanna Whitepaper. https://www.bitcanna.io/whitepaper/
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