There are many ways to extract CBD from the Hemp or Marijuana plant.  Typically they use either gases or solvents which then evaporate away to leave behind the pure CBD oil.  Here are the main techniques:

CO2 Extraction –  The hemp is placed in a chamber which is then filled with carbon dioxide. By applying pressure to the chamber, the carbon dioxide is turned to liquid, which then absorbs the hemp’s oils and flavours. The end result is a liquid consisting of both carbon dioxide and CBD. This liquid is then pumped into a final chamber where the carbon dioxide is turned into gas.

Ethanol Extraction – Alcohol extraction is a popular and safe method. In simple terms the ethanol separates the plant compounds from the plant material and then evaporates, leaving behind a mixture of cannabinoids, terpenes, flavonoids, chlorophyll and more.

Olive Oil Extraction – Olive oil is used as a natural solvent. The plant is heated and then mixed with olive oil which as it is heated further binds the various compounds to the oil. Typically this is a method used at Home rather than Industrially.

There are three main types of CBD: Full spectrum, Broad spectrum, and Isolate.

Full Spectrum means it is made from the whole plant. These oils include CBD as well as all the other cannabinoids found in the plant including THC, together with terpenes and flavonoids. This allows the full entourage effect to take place. When derived from hemp the max THC will be 0.3%.

Broad Spectrum means it is made from the whole plant minus THC. These oils include CBD as well as all the other cannabinoids found in the plant together with terpenes and flavonoids. This allows a partial entourage effect to take place.

Isolate means that everything other than CBD has been removed. No entourage effect is therefore possible.

And click here for a Pictorial representation of the differences

Cannabidiol (CBD) is a chemical compound found in cannabis sativa, a plant with two main species – marijuana and hemp. The class of chemical compounds to which CBD belongs is called cannabinoids. It is these cannabinoids that give cannabis its medicinal, therapeutic, and recreational powers.

The cannabis plant contains over 118 identified cannabinoids among which CBD and THC are the most famous and important.

THC, or tetrahydrocannabinol) is the cannabinoid that gets you high when you smoke cannabis. Unlike THC, CBD is non-intoxicating in nature and does not cause feelings of intoxication or euphoria in the body.

Different species of cannabis plants contain different cannabinoids in varying concentrations. the two most common species are Hemp and Marijuana. Marijuana is rich in THC, which is why it is primarily used for recreational purposes. Hemp, on the other hand, is a variety that contains low amounts of THC and high amounts of CBD and is typically used for the industrial production of CBD oils and variants

Hemp and Marijuana are both species of Cannabis, however Marijuana is bred to have high levels (25% in some cases) of THC -the substance associated with illegal highs.

CBD is extracted from Hemp that contains less than 0.3% THC.

Cannabinoids are naturally fat-soluble, which means they mix well with oils, but not water.

Water soluble CBD is quite simply CBD that you can dissolve in water (and can be Isolate, Broad Spectrum or Full Spectrum). While there are a variety of methods used, the basic premise is that the CBD molecules are broken apart and made small enough that they can effectively blend with water molecules.

The finished product (which can be an oil or a powder) may then easily be added to food or drink, which provides endless opportunities for different types of products.