Shanghai-based blockchain startup VeChain has started testing a blockchain app to use in verifying the wine supply chain and to fight counterfeits, the South China Morning Post reported May 24th.
The wine industry in China is worth about $2.8 Billion, but issues with knock-off wines have weakened consumer trust in the quality of the product.
VeChain hopes to fix that issue. Partnering with retailer Shanghai Waigaoqiao Direct Imported Goods (DIG) and will test the products of French winemaker Pierre Ferraud and Fils.
By scanning a QR barcode, buyers will be able to obtain essential information on the wine they are interested in. These include winery details, grape variety, the Chinese customs declaration number, date when the bottle was taken from storage and delivery to a bonded warehouse, as well as when the wine was supplied to DIG outlets in the city.
VeChain also plans on integrating a Near Field Communications chip (NFC) on bottles of premium wines, with the chip being placed near the wine stopper. If the chip gets broken, it becomes impossible to read or write data to its blockchain.
VeChain is currently in talks with other vineyards about deploying blockchain tech to help establish a foothold in China. VeChain is currently in talks with an Italian vineyard and made offers to wineries in Australia and South America.
Other markets are also beginning to use blockchain to verify their supply chain. last March, Chinese e-commerce giant JD.com began using blockchain to track the supply chain of its meat sales, while over in the US, Walmart is using a blockchain app to track it’s food products, allowing quick verification of product information, as well as reducing waste.