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- 1 The VeChain blockchain network aims to achieve sustainability and transparency in the Wine Industry.
- 2 The NFC tag on Wine Bottle would provide detailed product information.
Wine fans rejoiced as DNV tried VeChain’s Wine Traceability platform to boost the Wine production ecosystem. The system shall keep track of the Wine’s complete life cycle from wineries to distributors by benefiting from the power of blockchain, mobile, and IoT devices.
VeChain Bringing Panache to Wine Industry
VINEXPO says that China will be the world’s second-largest wine consumer by 2023, and its estimated market value will be around $23 Billion. This boom in the market attracted wine producers and con artists selling counterfeit wines. The Shanghai Police seized 14,000 bottles of copycat Penfolds in November 2017 worth over $1 Million. Five months later, Zhengzhou police seized $2.8 Million worth of fake 50,000 bottles. Such wine fraud can be considered the tip of the iceberg.
The VeChain blockchain network found use cases in multiple industries. This time the Wine Industry would benefit from their expertise as the system addresses sustainability and transparency issues in the wine production process. The industry is already facing a war with carbon footprints and counterfeiting. Maintaining transparency is of prime importance.
DNV focuses on offering sustainable supply chains and food systems. The firm recently showcased its MyStory digital passport at the London Wine Fair 2023. It also showed how their wine production carbon footprint calculator works, taking sustainability and transparency into account during production.
The blockchain network was chosen considering its experience handling supply chain issues in the wine industry. A significant problem an authentic wine producer faces is preventing the counterfeit product from entering the market.
VeChain launched its Wine Traceability platform in June 2008, built on its ToolChain—a revolutionary one-stop BaaS platform designed by VeChain.
Every bottle of Wine would be tagged with an encrypted Near Field Communication (NFC) tag/chip explicitly designed for Wine products. This chip can retrieve information about the bottle from the blockchain. The provided information would include verified provenance details audited by an independent third party. They are allowing consumers to have more profound knowledge about the product.
Wine & NFT
Some time ago VeChain partnered with Laava in bringing a Wine NFT solution at the wine trade fair ProWein, held between March 19 and 21, 2023. It is an annual event for the wine and spirit industry in Dusseldorf, Germany.
As a layer-1 blockchain ecosystem VeChain is ideal for creating NFTs connecting the physical and digital products using NFC and IoT technology.
During the comparative evaluation, it was pointed out that NFTs though beneficial come with extra costs of minting and transferring. However, VeChainThor can regulate gas fees with its two-token model. This model ensures that the prices remain under acceptable limits, thereby addressing the expenses.
Blockchain technology has the potential to revolutionize almost every industry. Many are exploring how technology can be used in the real world. Like VeChain is trying to revolutionize the Wine industry, it’s a matter of time before almost every sector gains benefits from the technology.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
