Around 2 weeks ago, on the 14th of March 2019, we were invited by Cryptoboerderij to conduct an AMA with our CEO Jan Scheele in their Telegram channel.
We were truly impressed by all the great questions the communities came up with, and thus, we made a recap in English to show everyone who missed out on the AMA what we’ve been talking about!
|Can you briefly explain what BitCanna is, what it stands for and what the vision for BitCanna is? Afterwards everyone can ask questions to LBCN (CEO BitCanna, red.)||In short, Jan Scheele, CEA of BitCanna, 31 years old, living in Maastricht, but also in Amsterdam with a office space, so I am a traveller between both cities.|
A short intro on BitCanna. Besides that I can advice everyone to visit the website and see the videos which are there. I always get compliments on the structure of the site.
This is one of the three basics for BitCanna. In general there are three elements; payments, supply chain and verification.
We almost have our first version of the payment solution finished for both online and offline retail. Offline will be done through Proof-of-Stake (in the clip you can also see a demo of that)
|BitCanna can be used as a means of payment in coffeeshops. How will the coffeeshops convert these tokens into euro’s?||A module will be available which can be used by the coffeeshops and all other on- and offline merchants to convert tokens into fiat without delays|
|Why would I buy BitCanna when I want to purchase something in a coffeeshop?||1) Our ID replaces the need of using your own ID when doing purchases, which is good in terms of privacy|
2) All-in-one mobile wallet, removing the need for cash. This is also convenient for the seller (which currently holds loads of it)
3) Sellers can utilize an incentive to buy using BCNA
4) You can view the complete supply chain of a product. Compare this for example to the orange juice from Albert Heijn
|Hello LBCN, thanks up front for your time. Four questions:|
1) Taking the current toleration policy / partial legalizaition into account, to what extent does BitCanna lead the way on Dutch legislation? And to what extent is there also synergy to not only obtain a theoretical business model, but also one which is feasible? Background for this question is that when complete legalization will stay away BitCanna can hope to achieve a lot, but it might be in principle not doable.
2) As an extension thereof, is BitCanna also aiming on the Dutch market or is the focus initially on countries as Canada where legislation is more progressive?
3) What is the incentive for growers to use BitCanna? Mapping the chain of production is for some parties convenient (e.g. the controlling power), but where is the profit for the growers? Is the ambition of BitCanna to counter illegal grow and if yes, how will this be done?
4) Is BitCanna meant to solely (or mainly) used to map and optimise the chain of production or is BitCanna also a means of payment which is used by consumers to do canabis-related purchases? If the latter is the case, will the same chain and token be used?
|1) We are indeed leading. But look at what is published by the Dutch government. Recently a paper from secretary Grapperhaus was published concering the use of blockchain technology for this sector which showed positive signs on many aspects. Besides, we always tend to think about the weed from the coffeeshop, but there are way more cannabis-related products. From CBD to seeds and even more… looking at the real facts and figures the conclusion can be made that the coffeeshop is just a small element|
2) Globally! We have already partnered with a lot of companies worldwide
3) Supply Chain Management! And first and foremost; we now hear that the top-producers of the best products want to differentiate themselves from the rest of the crap… they want this solution to be able to do that. As BitCanna we hope to contribute to putting the cannabis industry in a better light. It is really important to note that the initiative of BitCanna has its roots in this industry. An example is the market for CBD oil which is now flooded with oil of an inferior quality (in most cases the wrong composition). This is a product which is used for medical purposes, but where it is very hard to judge the quality of the product by the consumer. We can contribute to this by making the quality of a product transparent and easily accessible.
4) Threefold; payment solution, supply chain and ID. Also think about transactions within a supply chain. The end consumer can of course pay with BCNA for his / her products. But why would the shop nat pay distributor with it? And the distributor in turn again pay with BCNA at the supplier or producer? The amount of cash in play in this chain is immense. But also notes that, just as in many other industries, the intermediairies take away percentages of the transactions, which in the end add up. It will also make processes a lot simpler. Practically speaking I think about smart contracts which support systems meant for stock keeping.
|Bitcanna tries to save proof of identity on the blockchain to enable a quick verification of the age of a customer in the coffeeshops. What methods will be utilised to avoid abuse of fake ID-cards?||We have a team who will facilitate this, just like companies as BTC Direct etc. A tool which be made available to check authenticity.|
|Will the platform or the app show the following elements?|
– Advantages weed
– Side effects
– Possibility to check stocks
– Is it possible to see whether it is biological?
– Can you see where it grows and whether it is done with love and care?
– How will this data be obtained? And how can you guarantee that the data is trustworthy besides the reviews of consumers?
|It will be one complete solution for the complete supply chain. From the very beginning as a seed to sale, including origin, grower, etc. All this data must be easily accessible. We see BitCanna as a platform, where on the one hand the consumer can use an app to, as an example, obtain information and trace their product. And on the other hand for the business the blockchain will be linked to software which, as an example, can link a quality certificate to a batch of cannabis. Companies who want to fulfill that role in the cannabis industry have already approached us. It is still in the early stages, but this might become a cooperation between those companies and us. This is also the case for the ID solution. There are many parties currently working on bringing this to perfection. We are not going to reinvent the wheel if there is a working method available and can be integrated in the BitCanna app and blockchain.|
|Why would I pay with CannaCoin when I can also do it with BTC?||Because we are offering a complete solution with a wallet which can be used to explore the supply chain, place reviews, use your ID, rate parties involved in the chain, etc.|
|Concerning the paper of Grapperhaus, it can be that way, but sadly Grapperhaus is just 1 guy and not a majority.The political sentiment still tends to lean towards discouraging, disapproving sales and usage of cannabis. Is there any sight at BitCanna on improvements on that field, or is it for you also sitting and waiting on better times?||If you ask me, the tendency is that more and more municipalities are allowing growing. We do not only see a trend in the Netherlands, but also internationally this is booming.|
|Is saving the ID credentials on the blockchain GPDR-compliant?||Yes, because it concerns a private chain. We have a few blockchain-lawyers looking over our shoulders for more than a year regarding this kind of questions. They are also part of our advisory board.|
|I see that you are a board member for the CDA. The same CDA does not believe in legalisation of weed and on top of that tries to bring the amount of coffeeshops to zero. But as a company you thrive on legalisation and keeping the coffeeshops open. Does that mean you are actively lobbying within the CDA for legalisation?||Good question! In Maastricht I am indeed a board member. On a national level however I disagree on the policy on many fields. Especially since we experienced a lot with our neighbouring municipalites. There is a strong internal lobby based on very interesting facts originating from scientific research.|
|Thanks for this information. Good to know. So investing in BitCanna is indirectly an investment in legalisation on the long term.||You are ready to take a screenshot? 😉|
|It is impossible to achieve with the current legislation. The ones who are behind this do not want to be known at this moment, so it is a project for the future. The market is also small, there are only around 700 coffeeshops in the Netherlands. How will you get any volume on the chain? Will pharmacies also be included? Not every pharmacy will participate, so where do you obtain the usage of the chain and why would people invest in this? With the prospect of such small usage with a limited audience. And taking the fact that all sort of legislation can be found worldwide into account it seems quite hard to me to make this an international project (if this was not meant for the Netherlands alone). I think the Netherlands will be a challenge already||We are only talking about coffeeshops. This is an insanely small part of the global cannabismarket. Just look at the enormous amounts of money and the companies which participate in this market. Coffeeshops are nice, but we are looking to the worldwide impact of all types of retailers, webshops and alike.|
|How many years do you thingit will take for you to reach the whole of the Netherlands and convince them to use the BitCanna chain and payment method?||1-2 years|
|What will be the advantage of BitCanna after full legalisation of weed?||Especially after full legalisation, for example supply chain and privacy|
|So we are talking about a company which aims to structure the chain from soil to customer. Would it then also theoretically be possible to have a complete supply chain participating on the chain, including quality marks, documents, etc.?||Exactly!|
|Is the focus of BitCanna until the end of time aimed on cannabis? Or is it possible that the achieved experience also can be utilised for other substances when these will be legalised? It is hypothetically speaking possible that XTC will also be legalised. Is BitCanna also usable for that scenario?||Cannabis. But the solution is in principle for every situation thinkable.|
|Would it not be a challenge to have multiple supply chains on one blockchain which are competing with each other? Because in principle that would mean they would get insight in each others chains of supply.||Sure, but let’s focus first on our own solution|
|How high do you set the bar?||Very high, very high|
|In which countries are your partners based?||Please check the website for an overview including a description, logo’s and such!|
|The Chief Marketing Officer of BitCanna has a nearly empty LinkedIn without a picture, which seems kinda odd for a chief marketing. Is there a explanation for this?||That is indeed remarkable. I will address this! We are not that concerned about our looks that we do not dare to place pictures|
|It might already have been asked, but why are the so called 13 developers anonymous?||That is their good right. It is a good team situated amongst others in Eastern Europe doing a good job. In that area the environment is not as tolerable as we know from here.|
|And why a group from Ukraine? Is that not too remote?||We want something truly spectaculair. Try to put a team of 10 programmers on such a project in the Netherlands the first projects we did with these guys go back about 15 years. We know them very well. We already knew them before we (and they) knew what a Bitcoin was. Together with them we have explored the technology with mutual interest and I can tell it was quite impressive how they mastered this matter. But right at the start they were not eager to become publicly known and now with BitCanna that has not changed a but. They do not want to draw attention or be linked to cannabis or blockchain. In their opinion it is good the way it is now. That is difficult when doing a crowdfunding (and possible even more in the world of crypto) to have to state that your programmers rather stay anonymous.|
|I agree with you. External programmers are way easier to recruit, to scale up or down and are often much cheaper. As long as you have a Dutch techlead which leads the project it should be alright.||Yes! And the techlead is really amazing. So no worries there.|
|How do you know that the team is good? Wat kind of work do they deliver? Do you have examples?||We have done various test projects with them. We are already 1,5 years working on developing.|
|Do you prefer to smoke weed or hasj?||Hahaha, sigars! I just brought a coffin with me from Brazil.|
|No kidding, I am totally convinced, will there also be a web-based wallet?||Yes, check the whitepaper. Various types of wallets!|
|Will BitCanna contribute to reasonable prices of products or will the price due to the implementation and the work which is required to achieve that only rise further?||That is not our initial target, but it is a nice goal!|
|We notice that altcoins strongly depend on Bitcoin. When Bitcoin is losing value, so does the rest of the market. What is your vision on this and how will you achieve independence of Bitcoin?||Let’s hope the market become more mature. If this relationship holds then somehting is off. The value of every altcoin is nearly for 100% speculation. The same accounts for demand and supply. It has to evolve to a relationshop where supply and demand is based on the utility of a coin. We are actively working towards adoption and the usage of the coin. Did you know that a large percentage of the participants of the ICO are in this because they are a customer of one of the companies of the alliance?|
|Good question. I am also curious how this plays out. How do you protect the token value of investors in this difficult and manipulative market?||Price fluctuation do not have to pose an issue for shops or entrepreneurs. By using OTC systems this can be tackled effectively. The BitCanna network has to grow in usage with network effects. An economic system that grows on its own while at the same time the amount of participants increases.|
|Is BitCanna doing a “vrijmibo” or a “vrijmijo”?||I have tried all sorts of things, but “vrijmito” is by far my favourite|
|What are potential pitfalls for BitCanna?||Looking at the roadmap it can be seen that there are multiple aspects we have to work on in the coming years. The technology will for sure be a potential pitfull, especially the way how things are shaped.|
|Ask me anything, right? I intended to do a light question compared to the books I wrote earlier||These questions are more than welcome|
|Do you have experience in the world of growing or worked in a coffeeshop yourself?||Nope, I am originally from the world of internet and events, so mainly technology and blockchain. I have gained experience from all the conventions though.|
|Will there be a fiat-canna gateway? In other words, can I deposit and withdraw canna via the app / wallet using for example iDeal?||Yes, that is the idea. With my own eyes I have experienced that various online shops have tried to enable the option to pay with cryptocurrencies to customers. And I can tell you it is quite frustrating to see that in general until now no successful implementation can be found. We are convinced that cryptocurrency will never go mainstream if the ease of paying with crypto can’t be done with just a few clicks. It has to be as convenient as a payment via iDeal, otherwise it is not viable. So this is an inevitable YES.|
|Who will be the facilitator?||We will be the facilitator through our own application|
|Is the personnel also subject to drugstests when there are suspisions of drug use during office hours?||Yes, and when they are tested negative an obligatory “tour” somehwere in the back of the warehouse follows|
|Did you consider using Binance Launchpad as a platform to host the ICO?||Yes! We are based in Malta and we have all the necessary documents, so it is a good case.|
|Would you deviate from the CDA?||I don’t know. I think it not a question for this AMA I would say|
|5 minutes until we close the AMA. Are there any questions left? LBCN, do you have points you would like to address?||I really see a lot of good questions.|
1) Read our whitepaper since that contains a lot of information, for example how we see regulation, about global reach and various technological aspects as apps
2) Become a member of our telegram group! Do not hesitate to ask question of mail to [email protected]
3) We are just started with the development so we don’t have a 100% solution yet. A lot of good questions are impossible to answer, because we have not fully decided on everything which is simply can’t be done at this stage
|Is there a possibility that cannacoin will be put under complete supervision of the government and in due time will be taken over in general? Causing civilians to be hesistant of using cannacoin or the other way around, that they have to use it to purchase weed?||No, that’s not possible|
|Setting all the advantages for growers, shops, consumers and such aside; what is the advantage for potential investors? The theory is that higher usage leads to scarcity and as an effect to a higher value. But with the main use as a currency where there will be a fiat-gateway as you indicated, there is the risk that all parties want to switch to fiat. So purchasing with fiat and then back to fiat again.||Good question. Potential investors will invest in a insanely good product. We do not foresee that everyone will convert to fiat immediately all the time. Just consider the large webshops / retailers, parties with a turnover of tens of millions of euros. We have talked with various of them in for example Prague and they want to have stocks of coins. That is the same with different currencies, that is why this is especially really interesting for them to have a global cannabis currency instead of USD/EUR etc.|
On the other hand, consider the fact that the supply is limited. The amount of users has to grow increasing the ratio coins change owner. At the same time the support of users has to grow which means that more (master)nodes are required. This causes more coins will be out of circulation to be locked.
To make a long story short, you have the chance to be part of the ICO and be part of the network. With the prospect of increasing scarcity of the coin.
|Do I understand correctly that it will be a Proof-of-Stake coin? HODL = reward?||Yes|
|So if I understand correctly, hodling the coin does not add value besides price speculation and the spending of them?||Yes, we are a Proof-of-Stake coin with masternodes|
|Back to the blockchain, suppose the forwarders of the growers in foreign countries store their documents on the chain. A company here in the Netherlands (take for example the harbour of Rotterdam) does not work with the BCNA-chain and therefore does not have access to the required documents. Will that not be a risk for keeping the complete supply chain up and running? In the end the success is based on a full-integration, isn’t it?||Very good question. If a company, let’s continue with the Harbour of Rotterdam, does not work with the BCNA-chain then that does not necessarily mean it won’t have access to the documents. Various permission rights, e.g. read-only rights, could be assigned throughout the supply chain. In addition, this is probably not an organization interested in the quality of the products. The next decade of international cannabis shipments probably require a higher level authorization for clearance of these products. Working with an authority like this would be great for BitCanna but the cannabis industry as a whole has not reached this level yet.|
|Are your political ambitions not completely the opposite of the vision of BitCanna? Is it a possible scenario where you have to choose between those two and will BitCanna then have the preference?||I don’t have an ambition to go into politics, otherwise I would be on the list and part of the council.|
|Suppose I want to sell 100 kilograms via the company, is it then completely traceable on the blockchain?||We do not sell, we are just the facilitator of payments and such. What are you up to? Planning a party?|
|The ID-solution will be anonymous, but how till the solution then know that the person with the QR-code / app is also the person on the ID which has been uploaded? Someone can use the ID of his brother or neighboor to fool the system||The same counts for apps on for example your iPhone. You never fully guarantee that it was you who used the app and not your little brother who used your phone without a lock|
|Will you also working on quality control using the blockchain, for example of the seeds which are sold and the weed and hash which is delivered?||Yes, that is the idea of the second pillar concering the supply chain.|
Thanks for reading everyone, and we hope we can welcome you to our future AMA’s! Don’t forget to join our telegram group!