From tracking vegetables at Walmart and now ascertaining the provenance of wine, companies are turning to blockchain to take control of the sometimes murky supply chain.
Medici Ventures, a subsidiary of Overstock.com, one of the more popular e-commerce platform is joining the fray as it seeks to eliminate fraud along the way. And for this, it has turned to Israeli start-up VinX with a yet to be disclosed investment – a press release indicates.
Counterfeits present a big problem in the wine industry and the firm puts the figure at 20% globally. The share is even bigger in China where half of the wine is thought to be counterfeit. The weak point is usually with intermediaries who take advantage of their privilege.
“Like any economy, the wine industry has difficulty scaling its middlemen-heavy systems in parallel with the growing demands of an increasingly global market.
VinX’s steps in tokenizing wine futures while allowing wine enthusiasts to know without a doubt that the bottles they purchase are filled with authentic wines will position the entire industry as a model of a new global economy that replaces old boys’ networks with frictionless trust through technology,” Overstock’s founder and CEO Patrick Byrne is quoted as saying.