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CBD is an entirely different compound from THC, and its effects are very complex. It is not psychoactive, meaning it does not produce a "high" or change a person's state of mind, but it influences the body to use its own endocannabinoids more effectively.
According to one study posted to Neurotherapeutics, this is because CBD itself does very little to the ECS. Instead, it activates or inhibits other compounds in the endocannabinoid system.
For example, CBD stops the body from absorbing anandamide, a compound associated with regulating pain. So, increased levels of anandamide in the bloodstream may reduce the amount of pain a person feels.
Cannabidiol may also limit inflammation in the brain and nervous system, which may benefit people experiencing pain, insomnia, and certain immune-system responses.