A Cannabis focused Technology Company Whitepaper Version 3.b 01.08.2018 P a g e | 2 Table of Contents 1. Our Mission . 3 2. The State of the Cannabis Industry . 3 3. Blockchain Technology 4 4. Traditional Marketplace vs Blockchain Marketplace 5 5. Introducing the GRPM Token 6 6. GrowPayment Ecosystem . 8 6.1 How it Works 9 6.2 Stembis . 10 6.3 Stembis Fulfillment Network . 11 6.4 Tap to Pay . 12 6.5 Pos Market Data Australia, Chile, Czech Republic, India and Portugal are all working towards their own Cannabis laws. P a g e | 4 3. Blockchain Technology Blockchain technology combined with smart contracts will be the driving force for the long-term growth of the cannabis industry. Blockchain based marketplaces provide a peer-to-peer network that can directly connect buyers to sellers on both a B2B and B2C level, eliminating the need of a middleman. What is a Blockchain A digital ledger in which transactions e.g. flow of goods, prescriptions, etc are recorded chronologically and publicly. Each transaction is digitally signed to ensure its authenticity and that no one tampers with it, so the ledger itself and the existing transactions within it are assumed to be of high integrity. How Blockchain Works When a new transaction occurs it first must be verified and accepted by the blockchain, it is then added to the blockchain ledger and a block holding the data is added to the chain of transactions. Each of these blocks are connected to the previous block and the one after it to create an irreversible and immutable chain. These chains prevent any individual block from being altered with or a block being inserted between existing ones. Blockchain Transparency Different to traditional financial systems, blockchain provides a deep level of transparency, ensuring that holdings and transactions of each public address are open to viewing. ting a public address in to an explorer tool makes it possible to view all previous transactions and current holdings of that address, increasing the level of accountability to large businesses. Smart Contracts Smart contracts are contracts that have been coded and embedded onto a particular blockchain. The code contains all the rules, conditions, expiry dates and all other relevant ination needed for its fulfilment. These smart contracts provide a “trustless solution” as the contract will cute automatically once the terms are met and not before. P a g e | 5 4. Traditional Marketplace vs Blockchain Marketplace As the world discovers new technology and adapts to new markets, traditional ologies become obsolete. Modern marketplace systems are primed to disrupt the market and cannabis with its geo political complexities is the agent to spark that change. Traditional Marketplace Blockchain Marketplace Network Model Centralized Decentralized Number of Clients Limited by systems and International Operations No Limitations Scalability Costly and Time Consuming Fast Scaling and Cost Effective Traceability Third-party database Immutable public-private ledger Agreements Risk being adjusted on the fly and not being honored Embedded and cuted through smart contracts Privacy User ination is required upfront Customer profile is unlocked through temporary key Dispute resolution Subjective and slow by design Objective smart contract escrow service network arbitration Proof of origin tracking No mechanism in place Seed to delivery tracking compatible Listing Fee Up to 8 per item No cost Payment Processing Fees Up to 15 As low as 0 Speed of Transactions Potentially several days Near instant Withdrawal of Funds Potentially several days Immediate P a g e | 6 5. Introducing the GRPM Token The GrowPayment token will be the primary token accepted throughout the Stembis marketplace as well as the entire GrowPayment ecosystem. The GRPM token is based on the decentralized Ethereum market standard smart contract ERC20 token with the potential to move to ERC223 standards to increase user experience. As a large part of the cannabis industry is currently unbanked, the GRPM token acts as a solution providing vendors with a of bank account Digital Wallet and an additional way for consumers to make purchases. P a g e | 7 Vendors will be able to use GRPM tokens to pay for services such as; advertising, Stembis plat solutions and B2B purchases. GRPM tokens can then be liquidated on a partner cryptocurrency exchange or through Bancor’s network. Many of the fees involved in banking, maintaining accounts and success fees are reduced. Moreover, vendors open the door to a huge market of token holders both in GRPM tokens and with niche cannabis collaborators that are positioning themselves to be part of the Stembis plat. Consumers will be able to transact throughout the GrowPayment ecosystem using GRPM tokens. Using GRPM tokens, GrowPayment will be able to reward loyal consumers with airdrops of tokens to their personal wallet. Loyalty drops will be based on frequency and size of transactions B2C and B2B. Customers can also receive GRPM tokens when engaging the social network by leaving comments and reviews for products and vendors, special discounts and added value items will be available only for GRPM users to drive adoption. P a g e | 8 Retailers and Dispensaries GrowPayment will be partnering with retailers and dispensaries around North America to provide E-commerce, fulfillment and in store payment solutions. Customers Customers in the ecosystem is made up of users on S and customers of dispensaries and retailers who uses our Tap to Pay application. Wholesalers and Producers All users of the B2B portal to make international transactions around the globe and take advantage of the speed, security and cost effectiveness of cryptocurrency. Other Cryptocurrencies Cryptocurrency businesses with their own token that will be accepted on S and GrowPayments Tap to Pay application. 6. GrowPayment Ecosystem P a g e | 9 6.1 How it Works The GrowPayment ecosystem will allow vendors in the Cannabis industry to access greater s of payment acceptance, give token holders of various cryptocurrencies a plat to use and liquidate their tokens, and give users full vision on inventory quality and movements. Customer buys a product from the physical store Customer is shopping on S Merchant s amount and generates a unique identifier QR Code Customer pays in fiat money through NFC tap Customer pays in cryptocurrency by scanning QR code Merchant Bank Accountt Merchant wallet ID Checkout with Fiat or Cryptocurrency Payments User is shopping on the B2B portal GrowPayment fulfillment will distribute product to buyer while tracking each inventory on the blockchain Buyer enters Wallet ID or credit card Stembis holds payment in escrow until vendors are ready to withdraw funds P a g e | 10 6.2 Stembis Stembis is an online marketplace for the premium cannabis market featuring only the highest quality and packaging in cannabis and cannabis related products. The purpose of the marketplace is to reshape the image of the cannabis industry by removing the negative stigma and demonstrating a high value niche to the general public. Stembis also provides the solution to streamline payments and breakthrough payment barriers for vendors by allowing the acceptance of credit cards, cash, alternative payment gateways and various cryptocurrencies. How it works Similar to popular marketplaces such as Amazon, Stembis also features a multivendor functional plat that connects to the Stembis fulfillment network. Vendors will be able to create their own storefronts and list their most premium products for sale while choosing the currencies they are willing to accept between various fiat payment gateways, GRPM tokens and GrowPayment’s partner cryptocurrencies. Vendors can also take advantage of the Stembis advertising solution by having their products featured on key areas of the website and various Stembis social media channels. Shoppers will be able to browse and purchase products on S and checkout using any fiat payment gateway and vendor accepted cryptocurrencies. The shopper can then view and track each order through the Stembis fulfillment network. Blockchain Integration Our payment processor is capable of accepting BTC, ETH, GRPM or any of our partner ERC-20 tokens as a valid of payment. The payment processor will let the user pay directly using their Metamask account chrome plug-in or let them use their own wallet ID to scan the QR code and confirm the transaction. There will be a direct live conversion factor applied at the checkout page to calculate the exact amount in P a g e | 11 cryptocurrency equivalent to the dollar price of each product as well as the gas requirement. An invoice will be generated when the transaction is confirmed. The tokens are placed in an escrow account and are cleared to the vendors when the products are delivered. The processor will first confirm if the customer has enough cryptocurrency to pay for the transaction, when confirmed, an action is generated where the customer authorizes payment. The processor then confirms the transaction for every successful payment the transaction ID is attached with the invoice, which is publicly available on the Ethereum blockchain. 6.3 Stembis Fulfillment Network The Stembis fulfillment network is to increase the user and vendor experience by facilitating quick delivery of products while maintaining full vision and transparency on each inventory. How it works GrowPayment will employ a distribution center to manage the Stembis fulfillment program. Vendors will be able to send their inventory to the Stembis warehouse and leave the management and fulfillment up to Stembis. As soon as the inventory is received, each item will be tagged with a unique RFID tag and stored on the Ethereum network. Vendors and customers will be able to view the history and movement of each product on a live interface. With the transparency of using blockchain, users will be able to ensure the quality of each product by viewing the temperature each item was stored in, the shelf life, damages, whether it was a returned item and more. Blockchain Integration The Stembis fulfillment DAPP will feature roles created for each participant in the supply chain. The goods are the ‘asset’ on the plat which are transferred from one participant to another. Each asset is paired with a GRPM token to ensure validity and provenance. Each Stembis fulfilment smart contract is deployed to ensure end to end regulatory compliance, which means it will reject transactions where shipping address is outside service area where it is illegal to ship cannabis products based on end to end user product and shipping address. It will also enforce strict quality control measures where if minimum shelf life or temperature condition doesn’t comply with our standards by the next participant in the blockchain, the product will be dropped from the supply chain and marked as waste. P a g e | 12 6.4 Tap to Pay GrowPayment will help the legal Cannabis industry bypass payment restrictions from Stripe, PayPal, major banks and other payment gateways by offering our own tap to pay mobile solution. By partnering up with cannabis friendly payment gateways and the use of cryptocurrency, GrowPayment will give consumers and vendors the option to accept more than just cash payments. How it works GrowPayment will partner up with cannabis stores and provide them with an internally developed payment terminal based on the Android operating system. Vendors will be able to upload their inventory into the GrowPayment Tap to Pay application and assign each product with a unique identifier. Vendors will also need to assign their wallet ID or Metamask account to their store account on the payment terminal. On purchase, the vendor will enter the unique identifier of the purchased items into the mobile application to generate the invoice ID in which the dollar amount of the transaction will be pushed to the payment terminal; customers who have the mobile application will use the NFC module in their phone to tap the payment terminal to bring up the purchase. If a customer wants to pay in fiat currency, then they can choose the appropriate payment gateway whether it is through credit card or cash alternatives and complete the purchase. However, if a customer wants to pay through cryptocurrency, they can link their wallet ID or Metamask account to the mobile application and scan the QR code of the transaction to directly complete the token transfer. P a g e | 13 Blockchain Integration The payment terminal will send a request to the customer’s mobile application account that is linked to their wallet. On cryptocurrency payment options, a direct calculation of the chosen cryptocurrency will be calculated based on the live conversion rates as well as gas cost. Once a customer confirms and approves the purchase, the payment will be processed. GrowPayment will deploy its own private Ethereum nodes to confirm transactions to ensure quick processing speeds and enhance security while preventing any spoofing of data. The payment terminal will use an Ethereum access API to ensure a secure link between the Ethereum blockchain and its applications. 6.5 Pos Market Data Consumer Insights The explosion of ecommerce and big data has led to an unprecedented time to be in consumer analytics and strategy. There are countless ways to slice and dice a dataset to uncover the next big product characteristics, seed strain, untapped market and so much more. POS market leaders such as Nielson and First Data have set the blueprint for the retail industry but have also trapped it in the past. GrowPayment’s POS Market Data plat will provide producers and sellers access to raw aggregate data and a suite of analytics and predictive models that will help to drive their business forward. Leveraging the best in machine learning, plat users can come to leverage insights on topics such as demographics, purchasing behavior, recency, frequency, preferences, and many others to gauge the strength of their businesses and compete in the multi-billion-dollar global cannabis industry. Blockchain Integration Purchasers on the marketplace will be pleased to know that their customer profile will never be shared across the network or reside on a GrowPayment internal network. Leveraging zero-knowledge proofs, ination at the micro scale can be verified without ever having to be seen to generate macro insights. Zero-knowledge proofs and time sensitive keys allow for purchasers to support the ecosystem in an anonymous way, but to be also incentivized to provide more detailed ination on their profile and habits through a self-administered smart contract. P a g e | 14 7. Partnerships Announced to date GrowPayment has teamed up with Bancor to list our GRPM tokens to their cryptocurrency exchange post ICO. Bancor