One of the Chinese alcohol wholesale and marketer, Oranco, which is well-known for Fenjiu liquor and imported wines, based on the reports, is presently testing a blockchain solution to provide the authenticity of its products.
Based on the press release on July 26, Oranco subsidiary, Fengyuang Huaxin Liquor Development has teamed up with blockchain-focused firm Guangzhou Silicon Technology (GSTC) before a year ago. Both the firms have decided to work together to find out a solution for identifying Oranco’s beverages as genuine.
The solution mainly consists of a proprietary anti-counterfeiting laser recognition, including blockchain technology as a means to monitor and certify the alcohol products.
This process takes place in two steps. First, GSTC is accountable to check whether the given product is authentic or not. After this, GSTC will be using a new blockchain solution to provide a digital ID for the product of the blockchain.
Peng Yang, president of Oranco, expects that by using the new blockchain-based assurance, the firm’s products will increase in value:
“We believe the verification capabilities of blockchain will enable us to credibly assure the origins and authenticity of our premium alcoholic beverages. This technology will assure the authenticity and further build the value of our premium products.”
This is not the first time a wine company has taken this move. Some of the wine and liquor companies have used blockchain to monitor and demonstrate the authenticity of their products, as the market for fakes is increasing day-by-day.
In May 2018, VeChain, a blockchain firm from Shanghai, declared that it was testing a blockchain app to check the authenticity of the wine supply chain to fight fakes. For this project, VeChain has teamed up with Shanghai Waigaoqiao Direct Imported Goods to begin testing with products from French producer Pierre Ferraud and Fils.
In October 2018, Overstock.com’s subsidiary Medici Ventures invested in Israeli-based company VinX to build a blockchain-based wine futures platform. Vinx said that the tokenized trade of wine would form a secure supply chain which ensures a source of listed wines and thus decreases fraud in the industry.