Over the past few years, wine fraudsters have been steadily increasing in number. These fraudsters copy the exact structure of the wine and then manuf
Over the past few years, wine fraudsters have been steadily increasing in number. These fraudsters copy the exact structure of the wine and then manufacture them. It is impossible for the common people to detect whether the wine is fake or not. As per reports, around twenty percent of the total wine, which is distributed around the world is fake. The main reason behind the increase in the number of fraudsters is because the wine industry still follows the old school methods to verify the authenticity of wine. Instead of going digital, they still check signatures and other paper documents to verify the wine’s origin. It is very easy to copy handwritten signatures. Those who are expert fraudsters, will also have no difficulty in coming up with fake documents.
The frauds have been increasing in direct sales and in retail sales as well. The main reason why fraudsters are entering into the wine market, is because there are billions to be made, and the chances of getting caught are very less.
However, in order to curb such frauds, a startup based in London, Everledger is taking several measures. They have tied up with IBM, to create a blockchain sysyem, which will help to decrease the number of such frauds. In order to make the entire system more transparent, Everledger is giving a separate digital identity to each of the bottles. If someone wants to go past the authentication process, he or she will have to hack into the system. And hacking into such a secure system is almost impossible. And even if someone tries, there will be a deactivation alert, which will alert the concerned people about the breach.
Leoni Runge, one of the top officials of Everledger, also points out another reason as to why the adoption of blockchain technology in the wine industry was necessary. She says, that in order to check the authenticity of the wine, many people actually open the bottles. But that is not a very effective method, because most wine collectors and buyers prefer to buy wine bottles, which have been authenticated before.
With the application of the blockchain technology, customers can track down the entire record of a wine bottle. Since each transaction gets recorded in the system, it is possible to track the journey of the wine bottle from the manufacturer to the customer.
Once they are done with the application of the blockchain technology in the wine market, the Everledger team is trying to apply this technology in the fine art market as well.