The wine industry has evolved into a major economic player worldwide. In 2017, total wine sales, in the US alone, were nearly $63 billion, an increase of about 3 percent from the previous year. Worldwide, the wine market is currently valued at about $288 billion.
Thus it’s no surprise that modern digital technology has much to offer in this regard. Wine Chain (www.winechain.org) is the latest technological innovation to hit the wine industry, combining blockchain technology and wine traceability to solve the many problems related to quality and accountability.
The multitude of issues facing the wine industry are heightened by a general lack of knowledge about the product. What is good wine? How do you recognize a good wine? What is it worth in the open market?
Here are just a few of the problems currently facing the industry:
- Bogus products on the market, many of which are hard to identify
- Inconsistent pricing and a general lack of honest communication between vendors, retailers and consumers
- High costs associated with circulation
- Archaic marketing strategies
- Lack of understanding of the wine culture
How does Wine Chain address these issues?
Wine Chain targets the problems in the traditional wine industry by adopting a combination of blockchain technology and wine traceability for solving issues related to quality, accountability and lack of trust. By blending blockchain technology with the digital assets of wine, Wine Chain increases the value and assets liquidity of the entire industry.
The key, however, is the issuing of WID tokens by the Wine Chain to promote the spread of wine culture. This builds understanding, appreciation and recognition of fine wines around the world. Thus Wine Chain is the first cultural and social ecosystem for categorizing and evaluating wine and its digital assets.
Keep in mind that blockchain technology is the fundamental basis for Bitcoin distribution. Blockchain combines P2P networking, cryptography, consensus building and smart contracts to optimize performance and eliminate the “middle man.” This allows, and encourages, credible transactions without the expense, and potential security hazards, of third parties.
Wine Chain is based on quantum chain platform QTUM, which creates reliable decentralized applications suited for real-world businesses. In combination with PoS consensus protocol, QTUM applications are compatible with major blockchain ecosystems, while also communicating with mobile devices and IoT appliances.
This marketing strategy enables more people to understand the production processes and categories of wine, wine-tasting and healthy use of the product. It also dramatically boosts trust in the wine industry, which spurs increased sales, and enhances traceability. With a transparent supervision and management of the entire wine community, the Wine Chain mechanism of the whole community, facilitates a healthy and sustainable development of the whole ecological chain.
In addition, by building a digital asset system in wine industry, and transferring wines into digital assets a new ecological system is established in the industry. The entire wine industry chain becomes unclogged.
Operating elements and protocols
Wine Chain is divided into four application modules:
- Product traceability
- WID digital assets
- Social culture promotion
Product traceability is made possible through blockchain technology, NFC technology and RFID chip technology. The distribution of WID digital assets (bitcoins) enables the transfer of wine and other physical assets through the Wine Chain. By utilizing a personalized matching MAP, consumers can establish their own preferences so they always receive the wine of their choice.
Taking it one step further, Wine Chain can also facilitate cultural and social activities. Another big benefit is the establishment of a decentralized autonomous organization (DAO) community, one which is run by smart contracts. All financial transactions, records and program rules are maintained on a blockchain.
WID is the bitcoin of the Wine Chain. When there are more assets on the chain, WIDs become scarcer and hence more valuable. Although the WID value will steadily increase, its availability is limited; WIDs will not be issued forever.
A total of 450 million WID will be issued, about 50 percent of overall circulation, raising approximately 562,500 QTUMs.
Wine shops and chateaus will be investment hubs for wine assets and users. When the Wine Chain is flowing smoothly, it provides ongoing transactions to support the growth of the Wine Chain ecosystem, which, in turn, improves the circulation value of WIDs.
Future trend of Wine Chain
With so much capital at stake, it is inevitable that Wine Chain will have a major impact on the market in years to come. Worldwide, the wine market is expected to exceed $400 billion within five years, with a compound annual growth rate of nearly 6 percent.
Although the US, France, Italy, and Spain are the largest producers and consumers of wine, we can expect some of the smaller markets to come on board as well. Wine Chain is the future of wine marketing, domestically and around the globe.
For additional information, visit www.winechain.org.