Raising a Glass to Blockchain Applications
August 23, 2022
Read Time 5 MIN
Please note that VanEck may have a position(s) in the digital asset(s) described below.
How does crypto impact the real world? Many investors and would-be participants are waiting for a Web3 project that holds benefits and value that extend beyond holding an expensive NFT in a digital wallet. At VanEck, we believe that NFTs can provide real-world utility. We are excited to share an overview of an NFT project that caters to a more mature crowd – wine enthusiasts!
Disruption Tastes “dVIN”
Let's discuss a community-first Web3 project that redefines the way we think about clubs and memberships, solves problems around protecting authenticity, and explores a novel way for community members to connect over shared interests. We'll review how NFTs are fueling this next-level, disruptive business concept.
What is Club dVIN?
Club dVIN is a global community centered around a love of premier wines and built on top of blockchain technology.
This community was curated for people with an authentic and diverse passion for wine and features a real club experience with vintages from some of the most exclusive vineyards. When starting a new NFT project and minting the initial memberships, team members spend a lot of time figuring out how to avoid bots. With this in mind, the Club dVIN team interviewed potential members over video conference and at wine tastings to ensure their community was built around real people with a real passion for the good stuff.
Authenticity Solved by Blockchain Technology
There are many estimates about the amount of counterfeit wine sold globally with experts quoting ranges between 5% and 20%.1 Sour Grapes, a 2016 Netflix film, followed a wine fraudster who took bottles from famous vintages, refilled them with cheaper wine and sold them with forged labels. Club dVIN Co-Founder David Garrett has emphasized the importance of the “chain of custody” of wine and is actively tackling this counterfeiting issue with a proprietary blockchain mechanism called “Digital Corks.”
Chain of Custody – Source: Club dVIN.
What is a “Digital Cork”?
The NFT acts as a certificate of authenticity. Just like any true art work or collectible, provenance is everything and you can quickly provide this with your crypto wallet. The token resides on the blockchain, thus immutable (can't be changed), in the form of a transparent record.
Uncork a Bottle on the Blockchain
Few experiences are as enjoyable as opening a quality, rare wine, especially when you share these experiences with others. Let’s assume for a moment that you’re enjoying a meal with friends and family and you present a rare bottle of wine. The sommelier uncorks it, and while she does, you pop the digital cork within your wallet. The bottle is now recorded as opened, or uncorked, on the blockchain, preserving the integrity of the overall wine experience.
Popping the Cork to Onboard New Users
At VanEck, we started to do more with POAPs (Proof of Attendance Protocol). They act as digital badges that users collect after attending live events or experiences. With a POAP in your wallet, you can prove through the blockchain that you were there! They are a great way to reward and measure community engagement.
Club dVIN has taken this idea a bit farther, creating a "Tasting Token" that serves the same purpose, but uses the token as a vehicle for onboarding new wine enthusiasts and potential members.
What is a “Tasting Token” and how does it work?
Let’s go back to our example of popping the digital cork within your wallet. This action provides you with an opportunity to mint up to 12 Tasting Tokens.
Your guests may now try the wine and scan your wallet with their own to collect a Tasting Token. This digital badge-like asset becomes proof of experience that together you opened a bottle of a specific vintage on a particular date and time. It becomes a record on the blockchain that can be used for engagement or further incentives by that vineyard. You don’t have to be a NFT expert to see why this would be fun!
Tasting Token example – Source: Club dVIN.
More on Tasting Tokens
Once minted, each Tasting Token converts to a piece of collectible, digital art. The rarer the wine, the rarer the artwork! In a brief tutorial on how this concept works, David asked me to scan a QR code generated from his wallet with my own. Shortly after, I received a token in my wallet that featured high-quality art, a record of the time, date and vintage of the wine he just opened.
Lastly, the Digital Cork, whether opened or unopened, allows wine makers to participate in secondary market royalties. NFTs can be revenue powerhouses, passing through royalties for all types of art, not just those tied to pictures of apes or tokens with embedded music files.
The Last Drop
Many believe that the next million users to get onboarded into Web3 will come from projects like Club dVIN, as we bring friends and family into the metaverse through shared interests and passions. If you would like to learn more about Club dVIN because you enjoy community over floor prices and flipping NFTs, then I encourage you to visit their website and see if a membership is right for you. Ultimately, our hope is to show how blockchain technologies can power Web3 projects and change the way people think about everyday concepts and business.
1 Source: The Wine Wankers, ‘20% of all wine in the world is fake’ – this expert’s guide will save you a fortune, accessed August 22, 2022.
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November 30, 2023
November 30, 2023
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