Promoting Trust And Fair-Trade In The Wine Industry: The Revolutionary Role Of NFTs.
The global wine industry is estimated to generate about $29 billion in revenue annually, according to Toptal, and by 2022 it is expected to rise to 281 million cases, worth $32.9 billion. In a rather adverse context such as the pandemic, the industry has shown great resilience, adopting new technological trends as a driver for continued growth and expansion. Despite this industry’s exponential growth in the past few hundred years, there are still a few rough edges to be trimmed — unfair trade practices and diminishing trust decrease investors’ confidence in the industry.
That’s when companies like WIV technology, led by Tommy Nordam Jensen and Håkon Harberg, can bring an innovative approach to increasing revenue and boosting investors’ confidence in the fine-wine industry. Eliminating unfair trade practices, (amidst many other advantages), using the blockchain and NFTs.
Blockchain technology and NFT’s can embed trust and fair trade in the fine-wine industry if fully utilized. WIV technology is not leaving anything to chance in their approach to increasing the value of the wine industry.
NFTs or Non-Fungible 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 such as art collectibles. Everything from art to a real-estate title documents can be transformed or tokenized into an NFT. Every NFT can be verified back to their original creator as they have a certificate of authenticity and ownership.
Here is how NFT can be used to promote trust and fair trade in the wine industry.
Check against wine counterfeiting.
One of the most evident challenges affecting the wine industry is the issue of misattribution of origins and the counterfeiting of rare and exotic wines. Imagine spending a fortune on a rare wine only to discover it to be a counterfeit wine filled into a bottle under a fake label. NFTs certainly have the power to become the silver bullet against it.
Vineyards can create NFTs for cases and bottles of fine wines through the WIV ecosystem, which investors can trade for profit at will. Since the vineyards will have to make the physical versions of the tokenized cases and bottles, every purchaser can verify the existence of their article and their origin. This can be backed up by new and existing technologies that can guarantee provenance and store it in the metadata (or code) of the NFT, which then becomes immutable.
Promotes transparency
The WIV technology NFT approach against wine counterfeiting encourages transparency on an unprecedented scale. A strategic collaboration between leading wine producers allows them to share important information on the blockchain-powered ecosystem with their consumers.
Information from harvesting to distribution techniques, labelling, and sustainable agricultural practices will be available to consumers on the WIV ecosystem.
Suffice to say, a blockchain ecosystem, like the one presented by Wiv, is decentralized. Every bit of given information is verifiable by pretty much everyone. This eliminates fraud as it is simply impossible to claim ownership of someone else’s NFT.
Cost-efficient
The NFT technology approach to the wine industry does not only reduce counterfeiting and fosters transparency. It is cost-efficient. Since every NFT can be easily verified, consumers need not spend on verification and wine sorting. Since NFTs can also be traded peer to peer within the blockchain ecosystem smart contract, the need to spend on logistics, transaction fees, and paperwork is greatly reduced if not eliminated.
Increases liquidity
In simple economic terms, liquidity refers to the ease with which an asset can be converted into cash, whether tangible or intangible. Wine as a liquid asset needs to be sold to be converted into raw cash. NFT provides a borderless market where wines can be traded by millions of consumers from every corner of the earth, provided there is internet access. With NFTs, the industry will expand into the less explored markets with great success. A consumer from Hongkong can purchase directly from a producer in France, with no intermediaries involved. A wine collector can easily use his collection as loan collateral since his ownership can always be verified.
This will exponentially increase the rate at which wines can be converted into raw cash.
The WIV NFT approach to promoting the wine industry presents a golden opportunity to investors to maximize their wine investment. The elimination of counterfeiting, wine authenticators, and the cost efficiency of investing through the WIV ecosystem will result in the industry’s exponential growth.
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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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