Overstock’s Medici Ventures Invests in Blockchain Platform to Combat Wine Counterfeits

Overstock.com’s venture capital subsidiary Medici Ventures has invested in Israeli-based mostly technological innovation enterprise VinX to build a blockchain-run wine futures platform, according to a push launch printed October 4. The correct amount of the expenditure was not disclosed.

Per the announcement, VinX programs to produce a token-based mostly digital wine futures platform primarily based on the Bordeaux futures model, that will permit the trade of wine futures on a blockchain system. The initiative purports this will produce a safe supply chain that assures merchandise provenance and thus minimizes fraud in the wine sector.

In accordance to the push launch, 20 p.c of wine globally has counterfeit labelling. VinX reportedly options to deploy blockchain to link wine consumers right with wineries, doing away with allegedly fraudulent intermediaries. Patrick M. Byrne, the CEO and founder of Overstock.com, explained:

“Like any financial system, the wine marketplace has issues scaling its middlemen-hefty systems in parallel with the growing requires of an rising global marketplace. VinX’s ways in tokenizing wine futures although letting wine lovers to know devoid of a doubt that the bottles they invest in are filled with authentic wines will position the full marketplace as a model of a new worldwide overall economy that replaces aged boys’ networks with frictionless have confidence in as a result of engineering.”

In Could, Cointelegraph documented that Chinese blockchain startup VeChain began testing a blockchain application to verify wine provide chain and fight counterfeits. Statistics reportedly confirmed that “at least fifty percent of the Chateau Lafite-Rothschild eaten in China is bogus.”

In September, Albert Heijn, Holland’s largest grocery store chain, exposed it is utilizing blockchain to make the manufacturing chain of its orange juice transparent. The technique will reportedly retailer information that reveals the top quality and sustainability rankings held by several produce growers, as effectively as information about the fruits themselves.

A new examine by ReportLinker predicted that the blockchain in agriculture and foods source market place will be value over $400 million in the future 5 many years. The report states that “the blockchain current market is envisioned to improve, owing to the enhance in the need for source chain transparency along the agriculture and foodstuff verticals,” explaining that foods fraud is estimated to charge the world wide foods business $49 billion yearly.

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