PotCoin Blockchain platform support Cryptocurrency Address a specific issue. US banking services are generally not available in the legal cannabis industry.Many states have legalized the cannabis industry, but cannabis remains Illegal at the federal level, “Schedule 1” substance. Federal law prohibits federal agencies, including banks, from doing business with companies involved in this industry.
That seems strange given the size of the cannabis business, which is now legal at the state level, to say the least.Sale of legal recreational cannabis in the United States Can reach an estimated $ 25 billion Three Montreal entrepreneurs launched PotCoin in 2014. They sought to bridge the yawning gap created by the lack of banking services for companies that started to serve new markets: pharmacies, product manufacturers, retailers, and customers. For cannabis products (including medical marijuana patients).
PotCoin, at least for now, is limited to the niche in which it was created, the legitimate cannabis industry. Much of the demand for it comes from companies that need banking services. However, Potcoin continues to create and create features for platforms that appeal to both businesses and consumers.
The Blockchain The solution is a fully decentralized, free peer-to-peer electronic cash system. You don’t need a central server or trusted parties. PotCoin users hold cryptographic keys for their money and trade their businesses peer-to-peer without mediation, but are supported by a P2P network to prevent double payments.
Cryptocurrency (Token ID: $ POT) has become a legal medium of exchange for cannabis pharmacies and other businesses.It provided immutability ledger Of transactions between buyers and sellers. With PotCoin, anyone can buy cannabis and its fast-growing related products, anonymously and safely. The author initially based on the blockchain-supported cryptocurrency, the source code of another digital currency, Litecoin.However, PotCoin’s system is open source (the code is Github). Anyone can improve or change the code.
Therefore, PotCoin is different from Litecoin, but still maintains Litecoin’s relatively low transaction fees and fast processing times. What PotCoin does not have as a niche currency is the large community that supports it. (For example, Bitcoin and Ethereum.) It tends to make it. Low liquid And, for example, it becomes more volatile in response to news affecting the cannabis industry.
Banking services for the cannabis industry
What worked was PotCoin, an alternative to banking services for the cannabis business. It is a relatively small and limited cryptocurrency. However, PotCoin has its own digital wallet that users, including businesses, can adopt for transactions and store PotCoin. Without cryptocurrencies, cannabis companies would have had to do business exclusively in cash. Without a bank account or credit card, much of a company’s business is not only clumsy or impossible, but also very risky.
By providing marijuana growers, manufacturers, shippers, and pharmacies with a viable and secure blockchain alternative to banking, PotCoin has accumulated over $ 1 billion in PotCoin transactions with more than 408,000 network participants. Can now be reported. With PotWallet and the trading platform, any network participant can use, store, trade, and accept PotCoins. And now most of it (send, receive, save) can be done on your iPhone or Android phone.
The problem that blockchain platforms and cryptocurrencies have helped solve, the lack of basic banking services, can be even greater. The marijuana business is booming and is being legalized in more and more jurisdictions. It currently includes the District of Columbia, which has legalized medical marijuana, recreational marijuana, or both. In this environment, PotCoin states that its goal is to serve the internationally legitimate cannabis industry, and in fact, PotCoin and its features are available worldwide.
Rapidly increasing functions
PotCoin is evolving and continues to announce new features.For example, the PotCoin blockchain Proof of work Although it is a protocol, I switched to using it in 2015 Proof of stake speed (PoSV) Operating protocol. This is a variation of the more widely known proof of stake approach that rewards coinholders for the frequency of transactions using cryptocurrencies.
Like the others Blockchain platform for transactionsIt empowers cannabis industry buyers to track and track the origin of their supply, automate their compliance tasks, and perform real-time audits directly “on-chain”.
In the second quarter of 2021, PotCoin announced that it would support peer-to-peer business loans from banks that are not commonly available in the cannabis industry. They called this feature Decentralized Finance (DeFi). And now, a credit card is under construction. According to the website, this credit card will allow users to join the traditional financial system using PotCoins with “real-time conversion wherever debit and credit cards are accepted”.
$ POT Tokenomics
How did the $ POT token work as a cryptocurrency? As mentioned above, the limited $ POT community seems to be aiming for unlimited growth, but for now it destabilizes the value of POT. A now widely known example is the 2017 trip to North Korea by Dennis Rodman, who approved PotCoin during a widely published trip. It surged its value by about 90 percent within 24 hours. The rise in value peaked at $ 0.5083 at the end of 2018. It has declined since then, with $ POT trading at less than a cent at the end of 2021.
Of course, anyone can buy PotCoin on the crypto exchanges that list it. Currently, the most established cryptocurrency exchange is Bittrex.
Strengths, weaknesses and the future
Looking at this record, the balance between the strengths and weaknesses of PotCoin seems to be positive in the short term and less certain in the long run.
On the plus side, it has accomplished its core mission. This allows cannabis buyers and sellers to make fast, secure, anonymous online transactions without the help of traditional financial institutions. All such transactions are facilitated and simplified by PotCoin-hosted digital wallets, despite their limited size. All transactions enjoy the security of the blockchain ledger that records them and remain auditable (fully transparent) but immutable once the block with common consent is closed. The peer-to-peer nature of transactions undoubtedly gives users more control and perhaps more security than traditional banking services. Other banking functions such as business loans can be performed between participants. And PotCoin announced that more features are under development.
The downside or potential downside is that PotCoin’s “use cases” are limited to the legitimate cannabis industry. Like other cryptocurrencies, PotCoin can be a challenge for those unfamiliar with cryptocurrencies, such as pharmacies, when needed to do business with a company. The volatility of POT market prices and their relatively low trading volumes limit crypto liquidity and thus limit the size of transactions. And finally, observers continue to worry that federal investigators may be able to demand the termination of anonymous PotCoin transactions, given the ongoing paradox of state legality and federal illegality. I am. Of course, by its very nature, all such transactions leave a digital footprint.
Another consideration is that PotCoin no longer has a field on its own.other “Marijuana-centric” cryptocurrencyIncluding DopeCoin and CannabisCoin have entered the explosively expanding legal cannabis market. In other words, PotCoin started with some built-in limitations. Even if PotCoin was established, other limitations became apparent.The horizon has potentially more limitations — especially Final legalization Of cannabis at the federal level. At least in the United States, it seems to challenge the very reason PotCoin exists.