WHITEPAPERVERSION 1.0REVOLUTIONIZING ALL THINGS CANNABIS WITH BLOCKCHAIN20172017Abstract .........................................................................3Background ...................................................................4Mission Statement ........................................................7Paragon Business Model ..............................................8Paragon Smart Contracts ......................................9ParagonCoin ........................................................12ParagonSpace .....................................................16ParagonOnline .....................................................21ParagonAccelerator .............................................23Collaboration with IOTA ..............................................27Roadmap ....................................................................28Finances .....................................................................29Team ..........................................................................34Partners .....................................................................36Risks ..........................................................................3722017ABSTRACT“We’ve entered the most profound era of change for financial services companies since the 1970s brought us index mutual funds, discount brokers and ATMs.” Business Insider 7 July 2016The cannabis industry has traditionally been fragmented, untrustworthy, and illicit, but it is now moving towards greater legitimacy. New research shows powerful health benefits of cannabis and strong social movements are pushing for increased legal-ization. One way to improve the reputation of the industry is to modernize it, make it standardized, fully verifiable, and built on a system of trust between patients, doctors, growers, and suppliers. New blockchain technology / Distributed Ledger Technolo-gyDLT offers an ideal solution. Since blockchain holds an immutable ledger and as-sured contracts, it can easily accommodate the recording and storing of all product life cycle events, verify patient identification, assure payments, and more. Paragon seeks to create a crypto-token built on smart contracts on blockchain specifically for the worldwide cannabis community. Paragon is the first organization dedicated to leveraging smart contracts built on the blockchain to create and foster a community dedicated to the worldwide legalization and systematization of cannabis. 320171. BACKGROUNDThe 21st century brings dramatic changes in health, finance, business, and technol-ogy. It offers many opportunities to take advantage of changing trends and build on innovation. In the health field alone, we are witnessing great strides to cure diseases, manage symptoms, and reduce or eliminate chronic pain. However, one of the most remarkable s remains illegal in multiple states and at the federal level in the United States. Our goal is to change the legal status of cannabis, ensure the benefits are available globally, and create a framework that brings regulation and verification to the cannabis industry.Governments around the world, most particularly the United States government, have restricted and penalized cannabis users and businesses. Yet, we are seeing devel-opments that push the US federal government to establish, regulate, and encourage an open and fair market for the use and sale of cannabis. Currently, the 150 billion cannabis industry struggles with a patchwork of laws and regulations. Because there has been no standardization of federal regulations to allow for the legal trade of can-nabis, it has been forced underground, increasing the suffering of many ill people, preventing efficient and accurate business practices, adding to the crime rate, and losing state governments a great deal of potential tax revenue.Before cannabis can fulfill its health benefit potential, there are a series of prob-lems that need to be overcome Datedprohibitionlawsthatlabelcannabiswithanerroneousclassification Payment laws that make it nearly impossible to use traditional banking or credit solutions Uneducated politicians guided by obsolete and incorrect ination Social stigma and public opinion against cannabis A patchwork of laws that differ from county to county, state to state, and country to country Noestablishedstandardsforpurity,labtesting,IDverification,organicorecofriendlycertifications,prescriptions,THC/CBDpotency,start-to-finishtracking, and so on. Poorandinefficientdistributionsystem Fewplacesthatallowcannabisbusinessestorentofficespaceso-called“Green Zones”New blockchain technology presents a solution to most of these problems. Smart contracts built on a blockchain erase borders and unite dedicated people through-out the world. These committed advocates can use social plats to change laws, stop prosecutions, and ultimately legalize cannabis. Moreover, they can also build applications that make the industry safe, responsible, and organized via standardization and tokenization. This passionate focus on one emerging in-dustry can help pool strong talent in this area so as to achieve maximum results. 42017The cannabis industry is in the early stages of transitioning from an illicit to a legal economy. Of the 53 billion spent on cannabis in 2016 in the United States alone, only 7 billion was spent through legal channels. Clearly, legalizing the system will open a floodgate for new businesses. Now is the ideal time to take advantage of the growth potential of cannabis. Three converging forces make legalization much more likely 1. Increased public opinion favors legalization. Look at some past head-linesa. BRITONS WANT CANNABIS TO BE LEGALISED – CHANGE IS INEVITABLE, SAYS EX-MINISTER b. CANNABIS LEGALISATION 47 SUPPORT SALE OF DRUG THROUGH LICENSED SHOPS, POLL REVEALS c. SUPPORT FOR MARIJUANA LEGALIZATION CON-TINUES TO RISE It goes on to say 57 of U.S. adults favor marijuana legalization, while only 37 want it to remain illegal.2. Numerous medical research4studies support the effectiveness of can-nabis in alleviating multiple autoimmune illness symptoms, neurologi cal conditions, and other needed benefits.a. “...marijuana has been shown to reduce nausea and vomiting and to increase appetite in patients debilitated by AIDS and cancer or in patients who suffer effects of potent cytotoxic or antiretroviral treatments.” JAIDS Journal of Acquired Immune Deficiency Syndromes5b. “Use of marijuana for chronic pain, neuropathic pain, and spasticity due to multiple sclerosis is supported by high-quality evidence.” Journal of the American Medical Association6c. “A more detailed NIDA-funded analysis showed that legally protected medical marijuana dispensaries, not just medical marijuana laws, were also associated with a decrease in the following opioid prescribing, self-reports of opioid misuse, [and] treatment admissions for opioid ad-diction.” National Institute on Drug Abuse75- The Guardian1- Independent 2- Pew Research320173. Cannabis has a unique and passionate following. Those with ill health who are learning about the benefits of cannabis are demanding change. Millions of others desire easy, legal access to cannabis in all its various s. When given a forum to unite them, they will brainstorm effective ways to realize change. They will network to influence those in power and publish ina-tion to change the minds of dissenting voters. By building on this network and community, legalization of cannabis can happen much more quickly, placing Paragon in the preeminent position of a global cannabis cryptocurrency. Paragon plans to create a structure and technology that will solve the issues that surround the legal cannabis industry. The technology is ready to be used and sets up Paragon to take advantage of the ever increasing scope of cannabis legaliza-tion. 1 Doward, Jamie “Britons want cannabis to be legalised – change is inevitable, says ex-minister” The Guardian 7 May 2016http// Grice, Andrew “Cannabis legalisation 47 support sale of drug through licensed shops, poll reveals” Independent 9 April 2016 http//www.independent.co.uk/news/uk/home-news/legalising-cannabis-47-support-sale-of-drug-through-licensed-shops-poll-reveals-a6976796.html 3 Geiger, Abigail “Support for marijuana legalization continues to rise” Pew Research 12 Oct 2016 http//www.pewresearch.org/fact-tank/2016/10/12/support-for-marijuana-legalization-continues-to-rise/ 4 Mercola, Joseph “Marijuana Research Supports its Safety and Benefits” 16 May 2015 http// 5 Prentiss, Diane MA, MPH; Power, Rachel PhD; Balmas, Gladys MD, MPH; Tzuang, Gloria MPH; Israelski, Dennis M. MD “Patterns of Marijuana Use Among Patients With HIV/AIDS Followed in a Public Health Care Setting” JAIDS Journal of Acquired Immune Deficiency Syndromes 1 January 2004 - Volume 35 - Issue 1 - pp 38-456 Kevin P. Hill, MD, MHS, “Medical Marijuana for Treatment of Chronic Pain and Other Medical and Psychiatric Prob-lemsA Clinical Review” Journal of the American Medical Association June 23/30, 2015JAMA. 2015;313242474-2483. doi10.1001/jama.2015.61997 “Marijuna as Medicine” National Institute on Drug Abuse, April 2017 https//www.drugabuse.gov/publications/drugfacts/marijuana-medicine 620172. MISSION STATEMENTParagon seeks to pull the cannabis community from marginalized to mainstream by building blockchain into every step of the cannabis industry and by working toward full legalization. Our strength lies in the unique blockchain/cannabis con-nection that uses smart contracts. We believe in blockchain, and we believe in the benefits of cannabis. More uses of cannabis are coming to light, and we want to accelerate that process. We believe cannabis is good for individuals and good for countries. We are passionate about moving forward in an ethical, morally respon-sible, and legal way.Why did we choose the name of Paragon Because Paragon means “exceptional” and that is what we aspire to be1. We support vital causes Improved health, reduced criminalization of good peo-ple, and the freedom to make our own choices.2. We support the blockchain community. We will try to use as much PRG tokens and as little fiat currencies as possible while implementing our ideas.3. We are standardizing and unifying a fragmented industry. We will build block-chain smart contract solutions for many of the industry’s weaknesses. The industry needs help with lab testing, supply chain, ID verification, compliance, etc. All these respond well to smart contracts.4. We seek to create a physical ecosystem for cannabis and the new cryptocoin. Our office workspace opens up a critical place for cannabis companies to work and thrive.5. We are transparent. Funds will be escrowed and our books will be audited by reputable companies, such as Deloitte, Grant Thornton, or other well-recognized, in-ternational accounting firms experienced with the nascent blockchain industry. 6. The plat is open-source. It can be used by anyone to build their own can-nabis smart contract or blockchain application, create their own token crowdsale , promote their specific cause, etc.7. We are responsible. We limit our own benefits, putting the cause first. This is our passion. We are committed to the legalization efforts and the community.8. We give our members a voice. Pitch your ideas, help others, get funded, support other ideas, and decide our future through a voting system.9. We are groundbreaking. We will take advantage of the media’s interest in the hot topics of cannabis and cryptocurrencies. We benefit from being a community led by a female entrepreneur and we are the only strong global movement for cannabis utilizing the emerging smart contract/blockchain technology.Paragon’s passion, committed community, strong technology, and experienced leadership make this cryptocurrency the natural choice for the cannabis industry. 720173. PARAGON BUSINESS MODELWe started Paragon to resolve many issues currently faced by the cannabis indus-try. Blockchain-built smart contract technology is ideally suited to organize, system-atize, and bring verification and stability to a traditionally unchecked industry. Even before full legalization there are many opportunities for blockchain and crypto-to-kens to enhance the cannabis community and business model. Paragon will use blockchain smart contracts toCreateanimmutableledgerforallindustryrelateddataviaParagonChainOfferpaymentforindustryrelatedservicesandsuppliesthroughPara-gonCoinEstablishnicheco-workingspacesviaParagonSpaceOrganizeandunitegloballegalizationeffortsthroughParagonOnlineBringstandardizationoflicensing,labtesting,transactions,supplychainandIDverificationthroughappsbuiltinParagonAcceleratorThe Paragon model starts with a crypto-token and blockchain technology. It then sets up a network of physical cooperative workspaces where members can work, meet, socialize, and create. This will resolve issues with leases for cannabis-based startups and dispensaries that struggle with finding affordable and suitable loca-tions to house their business. Paragon’s organization also includes online plats to unite people around the world who are committed to cannabis legalization. Harnessing and focusing this dedicated community will quickly strengthen the legalization movement and is ex-pected to positively influence the demand for and respectively value of Paragon’s cryptocurrency, PRG.Finally, Paragon will actively support and fund blockchain innovation in the cannabis field, such that it increases the use and importance of PRG.Paragon’s business model is both unified and complementary. Each part combines to improve the whole. We will go into depth with each aspect and discuss what it does, how it works, and what makes it unique.820173.1 PARAGON SMART CONTRACTSUsing Blockchain Smart Contracts to Innovate the Cannabis Industry. Paragon takes advantage of the digital and verifiable nature of blockchain to solve the fragmentation of the cannabis market and the marginalization of businesses and consumers. Blockchain smart contracts are ideal for recording and facilitating the exchange of value, goods, services, and private data. Putting cannabis data and transactions on blockchain smart contracts will also increase the speed of service and save companies hundreds of thousands in reduced paperwork.Blockchain connects all facets of the cannabis industry from start to finishThe PRG smart contracts can immediately serve a number of businesses within the cannabis industry. With legal changes, increased community regulations and accep-tance, other business opportunities may emerge.