Everledger uses blockchain to block fine wine fraud

Everledger, a London-based startup, has entered into a strategic partnership with IBM to transform the way fine wines are authenticated by replacing paper records with a tamper-proof digital ledger that follows each bottle down the supply chain and every time it changes hands.

To provide the wine industry with a transparent and immutable ledger for record keeping and fine wine authentication, Everledger is deploying a blockchain network capable of embedding around 90 data points for each bottle of wine manufactured and distributed to retailers. Without hacking into the actual blockchain network, obtaining cryptographic keys and signatures, it is virtually impossible to pass the authentication process.

Because cases of wine fraud are increasing at rapid rate under today’s paper-based verification system and consumers avoid consulting fine wine authenticators, Leoni Runge, head of fine wine at Everledger, and the rest of the Everledger development team believed a blockchain-based immutable wine authentication system was urgently needed in the wine industry.

“In the fine wine industry there’s a lot of fraud. People take an original bottle and refill it or they fake new bottles. This poses a threat to sales and to people’s reputation. Collectors don’t want to open a bottle to prove it’s real, so we have to find another way. Blockchain enables us to secure the identity of an asset in a way we haven’t been able to before,” said Everledger head of fine wine Leoni Runge.