The main difference between cannabinoids and terpenes is how they work. Cannabinoids interact directly with the endocannabinoid system. Terpenes are a little less precise. Interestingly enough, terpenes have been studied far longer than cannabinoids, but the medicinal understanding of cannabinoids are more. Cannabinoids provide their therapeutic benefits by interacting with the CB1 and CB2 receptors. THC binds directly to the CB1 receptors where other nonintoxicating compounds turn receptors on and off through less direct interactions.