Blockchain and W&S

15 luglio 2019
15 luglio 2019

Blockchain and W&S

Luxochain Engages Blockchain Technology to Curb the Wine Counterfeiting Challenge

For decades, the counterfeiting of wine has been a source of concern to restaurants, auction houses, casinos, hotels, private collectors, and retailers. In September 2018, Maureen Downy who is a specialist at detecting wine fraud and has been inspecting wine bottles for authenticity for twenty years was interviewed by social vignerons. She expressed that the method available for tracking fake bottles of wine at the time of the interview was not sophisticated enough. She further expressed that, the way to effectively stop the production of counterfeit bottles of wine through the use of blockchain would be to integrate a serial number, and complete data into every wine bottles ledger. The ledger should also contain an authenticity combination through which anyone would be able to trace its authenticity. Only when this is done would blockchain technology be useful in the wine industry.

By April 2019, Luxochain announced its dedication to using blockchain to curb the creation of wines that were nothing but fraudulent imitations. That said, here, we would be discussing the inspection process engaged in handling counterfeit wines before blockchain technology came to the scene and how Luxochain is currently using blockchain to fight counterfeits in the wine industry.

The Wine Authentication Process Before the Use of Blockchain

Prior to when blockchain came into the scene to handle counterfeiting in the wine industry, wine inspection was done through the use of the Chai method. After the inspection process, findings of fake products could only be recorded in a written report. The problem with the Chai method is that previously inspected bottles of wine which were found as authentic can easily be altered or refilled. When they are later up for sale, they have to be re-inspected as though it’s the first time, thereby expending more time and resources. A process more detailed, sophisticated and permanent was clearly needed, hence the use of blockchain by Luxochain.

How Blockchain Technology Is Set to Change the Game

Flowing from the above, recently, blockchain was engaged to guarantee the authenticity and traceability of wines and several other luxury products. Each bottle of wine would be embedded with a serial number and authenticity combination. The serial number and combination will be registered on the blockchain network, and consequently, each bottle of wine will have a digital twin on the blockchain. With this done, it will therefore be impossible for wines to be tampered with.

Furthermore, the Luxochain system has developed an application through which a buyer can check and confirm the history and authenticity of any wine before going on to make a purchase. So, if a bottle of wine is stolen, the previous owner can notify potential buyers about it by inputting the details of such theft on the blockchain. If buyers, look up the bottle through the app, they would be able to view all there is to know about the product, thereby making the sales process much more secure.

On a final note, we can say that the possibilities of blockchain in this day and age are limitless. After several failed attempts to stop the production of fake products in the wine industry, it’s a relief to be having this breakthrough.

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