Blockchain in wine industry: Blockchain Innovators are hitting the bottles with applications for the wine industry
Blockchain in wine industry: As blockchain technology advances, the wine industry adapts. Wine enthusiasts will be happy to know that advanced technology has come to the rescue. An Italian startup recently launched consumer information and tracking system based on Ethereum. The venture is located between two other major ventures: EZLab and EY. The purpose of a wine blockchain is to gather verified information concerning wine production, cultivation and quality.
The goal is aimed at increasing consumer quality. All buyers have to do is scan the bottle’s QR code using their smartphones to get access to the data. In a recent article published on DCE Brief, it is clearly mentioned that the technology tackles a core issue in the wine industry: combating counterfeiting.
Blockchain technology aims are combating fake wines
Counterfeiting issues have led to significant annual losses; the total amount is estimated at 2.5 billion dollars. In the DCE Brief, there’s a survey cited that argues that 90% of Italian wine lovers need more information regarding the provenance of the product they invest in. These aficionados are willing to more for better authentication. The first type of wine that will use blockchain technology and a QR label will be Falanghina Wine, produced by Cantina Volpone.
Wine innovation and digital consultant, Gerardo Gabriele Volpone, emphasizes that the purpose is to make the registration process stricter. This way, their product will bulletproof; and no one will be able to replicate the digital signature of the owner.
Blockchain wine vaults on the rise
Everledger recently launched a blockchain wine vault. It was designed with the same purpose: to prevent scammers from replicating top-quality wine bottles. At the end of 2016, Everledger got their hands on a 2001 bottle of Margaux. The company claims that it is the only one in the world to have this form of unbreakable security system.
The price for the bottle of Margaux is estimated at $1,000. Wine Spectator talks about the wine wine, arguing that it has pure notes of steeped plum that blend harmoniously with the sandalwood-tinged structure. Everledger collaborated with another wine guru, Maureen Downey, to come up with a Chai Wine Vault and optimize authentication for fine wines with provenance.
Developed on the Linux system, the Chai Wine Vault record information about wines continuously; it also included ownership records, photographs, and even an original Downey Chai Method that gathers data points for each and every type of wine.
Blockchain technology prevents fraudulent bottles from being sold, thus preserving the reputation of the fine wine industry. Everledger wine guru, Leoni Runge, says that upon the launch of the service in December, the blockchain has been implemented to secure an asset’s identity in a very precise and unprecedented way.
The fine wine industry appreciates the innovation because it’s a great opportunity to make the market seem more transparent. Each and every bottle of wine that is checked with blockchain is 100% original and can’t be reproduced because it features a unique QR code.
Will the blockchain disrupt the fine wine industry?
Given the transparency of the blockchain, anyone with permission is allowed to check a transaction’s information. Transaction verification is completely transformed, hence reducing the risk of buying/trading counterfeit wine. Another core benefit is that there won’t be any contract issues any longer; any more default counterparties, frauds, and lost paper trails.
With blockchain automation, costs are reduced because people are no longer involved in the process. Furthermore, profits are streamlined and increased, leveraging efficiency. These benefits are the future and soon enough intermediaries will be eliminated. Challenges might emerge as unknown blockchain applications will go mainstream. That shouldn’t stop you from seeing that these two industries – fine wine and blockchain – will be combined to change the way people trade wine forever.
The wine industry is changing, and wine manufacturers are finally embracing the use of apps and blockchain technology. The benefits are evident; despite that there is some skepticism, experts agree that soon enough more manufacturers will jump on the bandwagon. If you wish to buy wine en primeur, now you can do it without fearing that something might go wrong. The blockchain will provide crystal-clear evidence that you’re investing in top-quality.
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