Blockticity, a startup that focuses on providing certificates of authenticity for possessions through blockchain, has minted certifications for $275 million in products on layer 1 Avalanche, according to a press release. The first round of minting includes hemp, psychedelic mushrooms and kratom.
The minting is done through its Certificate of Analysis (COA) as a non-fungible token (NFT) verification system. The first minting includes hemp, psychedelic mushrooms and kratom for U.S. hemp and cannabis lab, ACS Laboratory. The hemp, cannabis, mushroom and Kratom industry faces supply chain transparency challenges according to the company’s website. ACS tests for potency, assurance of no chemicals or pesticides in the products.
The aim of minting the certifications is to allow users to trace the COAs back to the original laboratory, access product’s test results and avoid fraudsters from exploiting the COAs through QR code tampering or data alterations, the press release read.
Sundie Seefried, CEO and president of Safe Harbor Financial, previously said in an interview with CoinDesk that a regulator expressed to her that crypto and cannabis could be a good match because blockchain technology provides a good traceability factor for funds derived from cannabis plants.
The way that the process works is Blockticity prints a QR code on the products and the QR code then links to a COA minted as an Avalanche NFT. So far, ACS Labratory has used Blockticty to mint over 35,000 COAs which accounts to a value of around $275 million.
Through minting a COA onto blockchain that is coming from the lab, Blockticity authenticates the report from the lab. Companies can then look up a COA and use the QR code to find that report owned by the firm who paid to perform the test, according to a previous statement.
ACS Laboratory’s next 120,000 scheduled COAs are for cannabis, according to the press release.
“We’re pleased to join forces with Blockticity once again, harnessing this avant-garde technology for our esteemed clients,” said Roger Brown, president of ACS Laboratory. “This technological leap allows any COA viewer to trace its origins and detect any discrepancies.”
ACS Laboratory and Blockticity previously collaborated in November 2021 to launch its first national hemp COA as an NFT on the NFT platform Moonwalk.