Wiv.io: Is NFT the future of wine?
As old as the world itself, wine has always been an important cultural experience in human history-from the worship of wine in ancient times to a multi-billion dollar market today. The global wine market in 2019 was 364.25 billion and is expected to reach 444.93 billion by 2027.
In addition to being a trophy for the collector community, fine wines are also a good alternative investment option. It shows an impressively stable price and is less volatile compared to other assets.
However, wine and trade investment are still treated with caution by investors because of some obstacles; proving the source of wine, transportation, storage, and high costs all make wine trade a challenge.
As the crypto era of revolutionary non-fungible token (NFT) technology has entered the art world, the question arises-what can it provide for the ancient wine industry? Could it be the answer to modernizing the wine trade?
Old industry moves toward technology
WiV Technology CEO and co-founder Tommy Nordam Jensen acknowledged the outstanding performance of wine in the investment environment in an interview with DailyCoin.
“Over time, as prices rise, wine is a good asset. Wine as an asset is one of the best performing alternative assets. Wine outperforms the stock market, real estate, and classic art. And so on, so it has about 240% growth over a ten-year period,” Jensen mentioned.
Given the long history of the wine industry, digitalization is slowly entering the market. According to Jensen, only 5% of wine is traded online.
“The industry itself is very old. It has been around for hundreds of years, so today’s transactions and many processes are the same as 300 years ago, and haven’t changed much,” Jensen pointed out in an interview.
WiV Technology’s current mission is to introduce encryption technology into the wine world. The company works with wine producers, distributors and merchants around the world to bridge the gap between the old and new markets.
On the blockchain-based WiV platform, every bottle or box of wine is associated with a unique and irreplaceable WiV Token, just like every bottle of wine. These tokens can be quickly and transparently traded in the NFT market.Jensen said
“We firmly believe in this. We are establishing some unique methods and the overall utility of wine. Decentraland, Cryptobox or Sandbox are the future of digital real-world assets. Just like wine, you need to display, sell and display the physical objects in the virtual world. wine.”
Instant proof of wine origin
One of the most important aspects of investing in wine is the record of its sources and storage methods, which determine its value.
Approval of wine origin is accompanied by a lot of paperwork, requiring manual checks at every step of the process, which slows down the transaction potential.
Blockchain technology and tokens are an excellent solution for tracking wine ownership. The decentralized structure makes it almost impossible to fraudulently claim ownership of tokenized assets.
The blockchain contains information about wine, which is stored and verified globally in the form of small packages. If any of these small packages are changed, it is obvious on the chain that the information is not suitable and the change is rejected.
This means that buyers and sellers can be confident that their investment is real and will not be subject to fraud. By withdrawing the paper documents, the transaction can be completed almost immediately.
Solve the problem of wine transportation and storage
Another consideration for wine investors is the logistics and storage of their collections. NFT solutions for the wine trade are removing this barrier, making the wine trade process faster and more progressive.
Investors no longer need to worry about wine transportation or specific storage conditions. Instead, they can hold a token that matches a bottle or case of wine and guarantee the authentication of their wine collection.
When the wine is resold, only the NFT is moved. Holding digital wine assets is not only a good way to guarantee the origin, but also reduces the inherent risks of wine collection. There is a direct correlation between the number of times a bottle is moved and its potential damage. A few minutes in a hot place may have a serious impact on the value of wine.
Cheaper and faster transactions
The WiV platform allows the ownership of wine assets to be traded at a faster and lower price than the traditional market.
Blockchain technology has introduced changes in the management of the transaction process. Blockchain does not have a central authority that needs to maintain its integrity, thereby reducing the need for brokers and related fees. So, in the final analysis, investors spend much less.
These conditions are necessary for the growth of markets that are more liquid than in the past. Tokenization is attracting a new generation of wine investors who want to add premium wines to their portfolios as liquid assets.
Investing in wine through the WiV platform provides the best of both worlds: the efficiency, transparency and speed of the digital market, and the history and establishment of physical products.
on the other hand
- The main challenge for WiV is the old market. It may not be ready to go digital, because the typical wine investor may not have the ability to navigate the digital world.
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