Chinese Alcohol Wholesaler And Marketer Oranco To Use Blockchain To Fight Counterfeit Products
Oranco one of the most prominent premium alcohol marketer and wholesaler in China just announced that they are going to use a product based on blockchain technology to fight fake products.
Counterfeit goods are a nearly $500 billion industry that, by nature, is difficult to quantify. It’s likely that this number is much higher. Chinese merchants are particularly egregious in this regard, developing cheap knockoffs of popular brands and selling them to unsuspecting customers who are hungry for a good deal.
The press release of the product states:
“On August 20, 2018, the Company, through its wholly-owned subsidiary Fengyuang Huaxin Liquor Development Co., Ltd., entered into an agreement (the “Agreement”) with Guangzhou Silicon Technology Co., Ltd. (“GSTC”), a company specializing in blockchain technical solution development and technical support, to develop the Technology for the identification and anti-counterfeiting of the Company’s premium alcoholic beverages.”
Now, in accordance with the agreement, the participating companies have agreed on developing a blockchain-based tech for
“the identification and anti-counterfeiting of the Company’s premium alcoholic beverages.”
Blockchain offers an undeniable advantage for trust and customer/brand relations. By allowing identification information to be recorded and, above all, verified, it can allow real traceability of the marketed products and the way they have been produced.
President of Oranco, Mr. Peng Yang commented:
“This technology will assure the authenticity and further build the value of our premium products. We look forward to further exploring and exploiting blockchain technologies following this exciting step.”
Using blockchain to see if a product is fake or real is nothing new and has already been used for several years for the certification of diamonds and precious stones by Everledger, a company that has created a universal registry. Each stone or diamond is notarized in the blockchain with many traceability elements such as the owner’s name, the serial number which is also laser engraved on the stone, and all related data: size, color, purity, and so on.