Shanghai-based blockchain startup VeChain is trying to re-write the entire wine business. The startup aims to verify the origin of a given wine through its application, built on blockchain technology. Industry experts estimate that China’s wine industry is close to $2.8 Bn.
At the same time, many believe that more than half of the Chateau Laffite-Rothschild wine consumed in China is fake. “The Chinese gulp more French wine than France makes”, said a business onlooker.
Currently, VeChain is working with Shanghai Waigaoqiao DIG (Direct Import Goods), and aims to test all the wine products passing through the channel. The startup has already been in an agreement to test French producer ‘Pierre Ferraud and Fils’ products.
With the help of integrating a designated NFC (Near Field Communications) chip at the wine stoppers, which when broken do not allow to read or write data onto the blockchain.
Over the last one year, already 10,000 wine bottles passing through DIG have been enabled with the blockchain, and the number is expected to rise tenfold as per VeChain observations. Using the blockchain technology verification, an Italian vineyard is trying to create a strong foothold in the Chinese market.