U.S.-based Multichain Ventures, which provides payment solutions for the cannabis industry, is one of the earliest adopters of Waves technologies. A Waves-based token, Tokes (TKS), is the ecosystem’s chief means of payment.
«Across the globe and specifically here in the U.S., there is a disparity in federal legalization of cannabis versus state legalization, ” says Michael Wagner, Multichain Ventures’ co-founder and CEO.
«As a result, it creates an obstacle for state legal businesses to get access to banking facilities and electronic payments, i.e. credit cards, debit cards and the like, ” he adds. «Gabriel [Allred, CCO] and myself, the co-founders of the project, who have been in crypto since 2013, identified blockchain as a viable potential solution to this problem.»
The company was launched in 2016, adopting Waves as the protocol for an underlying transactional currency token and aiming to develop software that would solve the payments issue.
«The intent back then under Tokes was specifically to deliver these decentralized payment solutions to entities in the cannabis industry in the United States and beyond, ” Wagner comments.
He first learned about Waves during its 2016 ICO, in which he was an investor. Waves’ technology appeared to be most suitable for Multichain Ventures’ payment solution.
«We felt that the protocol itself was innovative, but the features that were most attractive to us were the ease of use, the ability to issue tokens, fast and cheap transactions and the high transaction throughput capacity of the network, ” Wagner recalls. As the intention was to use the protocol for day-to-day payments with merchants, it was vital to have low transaction fees and avoid getting bogged down if transaction volumes increased on the network.
«It seemed like a viable alternative to ERC-20 tokens — Ethereum transactions were expensive at the time, ” comments Allred. In the three years that have passed since the inception of Multichain Ventures, it has evolved into a group of companies. Still, Multichain Ventures’ core competency remains digital currency payment processing, encompassing point-of-sale software, e-commerce software, web plug-ins and a payment API responsible for price conversion and trade processing.
«We have an ecosystem that allows for the native acceptance of not only our own digital currency, issued on Waves, but also WAVES itself and any asset within the Waves ecosystem — they’re all transactable through our point-of-sale technology, ” says Wagner.
«There’s a whole feature stack that we fundamentally can’t accomplish with other dApp-type chains. It really suits our particular needs, ” adds Allred.
Meanwhile, some of Waves’ more recent products, such as the Ride smart contract language, have also come in handy for Multichain Ventures.
«One of our core engineers has recently developed open-source repositories dedicated to our treasury management system around token issuance, ” says Wagner. «It’s a vesting schedule, or how we basically get tokens distributed back to us as a company.» Under the treasury management system, a token is created, put in a smart contract developed using Ride and then, over a period of 2.5 years, the token vests back to Multichain Ventures as a corporate entity.
«We want to provide some confidence to the market that we are not going to just go out and dump our uncirculating supply, ” Wagner explains. «That’s a smart contract that anyone in the Waves ecosystem can use if they’d like to have a similar governance structure.»
Another Ride-based smart contract will be used in early 2020, when Multichain Ventures executes an IEO and needs to conduct a blockchain snapshot and distribution.
A smart contract will automate the process of looking at all the wallet balances, taking a snapshot and processing distributions of the new token to all of existing token holders.
Still more opportunities for collaboration between Waves and Multichain Ventures are on the table, as the U.S. company plans a supply chain visibility solution for the cannabis industry. The solution will allow tracking the providence of goods from the point of origin all the way to the hands of the consumer.
«We’re considering leveraging Waves Enterprise as our supply chain visibility toolset, ” Wagner says.