Wine and Blockchain
Potential of blockchain technology for the wine industry becomes apparent when one of the main benefits of blockchain is mentioned – its ability to prevent fraud.
Wine industry is often harmed by mislabelling, fraud and addition of harmful substances that result in health issues as well in financial damage. Traditional methods to prevent fraud, such as authenticity labelling, is obviously not enough as there is not much additional effort needed to copy the “authentic” label as well. Barcodes, chips and other additional information can help, but the information can be forged by the producer or someone else which further decreases trust in them. Without blockchain, the integrity of system is flawed.
Blockchain technology allows to write information on chain that becomes permanent. Using this technology hack, winery can claim its wine to be original, write that information on chain and rest assured that its customers can easily verify the originality of the bottle and not to succumb to scams.
But we can take a step back. Leveraging internet of things and gadgets like sensors and chips, the whole wine journey can be written on chain with customer having access to the information that is hard to fake. Chips and sensors can further enhance the monitoring of the whole supply chain journey by automatically writing information about humidity, temperature etc. on the chain and making sure customers know the wine had been properly transported and stored.
But it is not just that. Trading on blockchain can allow remote access to wines otherwise unavailable in the region as well as decreased costs of shipping and accidents across the journey. Digital token then becomes proof of ownership that can be traded while the wine stays safe and in proper storing conditions.
Costra Labs is now working with one Moravian winery to proof the use case of wine tokenization. Follow us for more information in the coming days.