All you need to know about wine and NFTs -in 4mins read-
NFTS are the latest trend sweeping the internet, and the wine industry is getting on board.
NFTs have taken the tech world by storm, becoming one of the hottest trends in the tech world this year. While most of the excitement around NFTs has been in digital art, many other industries like fashion, jewellery, and wine have got their customers wanting to get in on the action.
There are already some fascinating discussions around NFTs in our wine world as the leaders are starting to spread the word and answer questions. Yet the lack of knowledge results in a lack of confidence, making those more traditional buyers question the NFTs implications for buying and selling their wine.
Let’s shine some light on the topic, shall we?
Wine tech key terms
It is fair to say that if all this techy stuff gets you scratching your head and asking yourself, “What’s an NFT?” you are most definitely not alone. For most wine people who talk about soils, vintages and wine styles around the world, tech is a very distant issue. And why should you care anyway?
The reason for that is simple: Web 3, the blockchain and NFTs are here to stay, and they hold the potential to, sooner than later, become the norm.
Keep reading to get a full grasp of the key terms:
First, let’s take it easy. In economics, “fungible” items are commodities that are interchangeable and identical to each other. Frequently cited examples include currency — one $1 coin is effectively identical to another $1 coin. Contrarily, the term “Non-fungible” refers to something that can’t be exchanged for something of equal value, quality and quantity. An art piece, a custom made article, or a limited edition product are nonfungible items.
What is an NFT then?
In simple words, it is the extension of a nonfungible product into the digital world. NFTs or Nonfungible Tokens are non-interchangeable units of digital data stored and traded on the blockchain.
Every NFT is completely unique and cannot be copied, and these often take the form of digital assets. Everything from a painting to a yacht or a bottle of wine can be transformed or tokenized into an NFT. The true magic of this is that the certificate of ownership and authenticity can be copied, cloned, or hacked as it exists in the blockchain. Therefore, every NFT can be verified back to their original creator as they have a certificate of authenticity and ownership.
What’s the blockchain, you might then ask?
The blockchain is a digital ledger of transactions facilitated by smart contracts. They allow peer to peer, seamless interactivity. As the blockchain is immutable and un-transferable, it has the benefits of bringing transparency, trustworthiness and decentralization into wine trading.
Want to learn more?
Check out Four Ways the Blockchain Is Shaping the Future of Wine
NFTs are particularly relevant in the Wine Industry since 20–25% of the fine wine is estimated to be fake. With the blockchain, you can guarantee the ownership of the provenance of each bottle, ensuring its proper storage condition lowering your investment risk to the minimum.
Read more: Promoting Trust And Fair-Trade In The Wine Industry: The Revolutionary Role Of NFTs.
Unlike the famous Grimes six-million-dollar collection of images and short videos set to music, the wine industry is taking much smaller steps into the tech world. Led by companies like Wiv, many big names like former NBA player Yao Ming, Chateau Angelus and Robert Mondavi are jumping into the game. This is grabbing the attention of crypto geeks and those modern and tech-savvy investors seeking to diversify their portfolios. The truth is, they hold an immense potential to bring massive value to the world of wine investments and trading, and the first step starts by educating ourselves on these new concepts that will become a requirement of the future.
Want to learn more? Go now to The Big Vin Theory podcast interviewing Tommy Nordam Jensen, WIV CEO, to get the full picture of the future of wine tech. 👉🏼 Open Spotify
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It is a lot to keep up I know- but stay tuned to learn more about these fascinating technologies that will shape the future of the wine industry!
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