Overstock.com’s venture capital subsidiary Medici Ventures has invested within Israeli-based technology company named VinX to develop a blockchain-powered wine futures platform. However, the actual amount invested in the new project is still not revealed by the company.
In line with an official announcement by the company, VinX plans to develop a token-based digital wine futures platform which is based on the Bordeaux futures model, that may alter the trade of wine futures on a blockchain platform. The initiative purports would produce a secure supply chain that will assures product ownership and therefore would reduces fraud within the wine trade.
As per the press release, around 20 % of wine world-wide has counterfeit labelling. VinX reportedly plans to deploy blockchain to link wine shoppers directly with wineries, eliminating allegedly dishonorable intermediaries.
The chief executive office and founding father of Overstock.com ‘Patrick M. Byrne’, mentioned:
“Like any economy, the wine trade has problem in scaling its middlemen-heavy systems in parallel with the growing demands of an increasing international market. VinX’s steps in tokenizing wine futures whereas permitting wine enthusiasts to grasp whileout a doubt that the bottles they purchase are crammed with authentic wines and would position the complete trade as a model of a new international economy that replaces traditional boys’ networks with frictionless trust through technology.”
Earlier in May, it was reported that the Chinese blockchain startup VeChain began testing a blockchain application to verify wine supply chain and fight counterfeits. Statistics reportedly showed that “at least half the Chateau Lafite-Rothschild consumed in China is not real.”
Even earlier this week, Albert Heijn, Holland’s largest grocery chain, disclosed that it would be employing blockchain to form the production chain of its orange fruit juice clear. The system would reportedly store information that reveals the standard and ratings held by numerous growers along with the additional info concerning the fruits themselves.