- Solana startup Baxus has developed a blockchain-based trading platform for secure access to luxury spirits and wines
- The platform employs blockchain, AI learning, and data analytics for real-time pricing analysis
- Baxus is the latest company to bring blockchain to the wines and spirits sector
Baxus, a startup based in the United States, has developed a blockchain-based trading platform to provide secure access to luxury spirits and wines, aiming to eliminate the fear of counterfeit products. Baxus employs a blockchain protocol for storing, authenticating, and tokenizing fine wines and spirits, integrating blockchain technology, AI learning, and data analytics to offer real-time pricing analysis. The project, built on Solana, is the latest attempt to use blockchain to ensure the authenticity of luxury products.
A Market Riple for Modernisation
Fine wines and spirits have long been seen as equal to cars, property, and art by the wealthy looking to diversify their investment portfolios. However, the alcohol investment market is notoriously complex and fraught with potential scams; in the early 2000s, a massive fine wine fraud was revealed, which led to one victim spending $35 million in an attempt to bring the sole perpetrator to justice.
More recently, in 2023, the City of London Police reported 89 cases of alcohol investment fraud, resulting in losses exceeding $3.8 million, according to Action Fraud. The issue of cask fraud within the whisky market has become so prevalent that it was recently addressed in the Scottish Parliament.
Baxus Leveraging Blockchain, AI, and Web3
Founded in 2021 by Tzvi Wiesel, a seasoned whiskey trader and collector, Baxus addresses not only investment scams but also broader global issues such as supply chain transparency and sustainability. By providing a transparent and traceable ecosystem for collectible spirits, Baxus helps to “reduce waste, combat counterfeit products, and promote fair trade practices,” according to Finian Sedgwick, Baxus’ Chief Operating Officer.
Built on the Solana blockchain, Sedgwick says that the the Baxus Marketplace leverages open Web3 payment infrastructure to lower costs, enhance transparency, and inject liquidity into a traditionally fragmented and offline market. Users of Baxus can conduct transactions using credit cards, direct wire transfers, and cryptocurrencies, with each bottle authenticated with a radio-frequency identification (RFID) tag and assigned a unique non-fungible token (NFT).
This token is added to the seller’s digital portfolio, which includes comprehensive pricing data history, allowing owners to decide when to list their bottles on the market. To ensure product integrity, Baxus stores all bottles in a climate-controlled environment, protecting consumers from scams and guaranteeing uniformity.
Latest in a Long Line
While Baxus is offering a platform for makers of fine wines and spirits, some have already gone it alone. Earlier this year, Scottish gin distillery Roehill Springs announced that it is using blockchain to ensure transparency regarding the water used in crafting its spirits, providing customers with detailed insights into the quantity, quality, and origin of the water employed in its gin production process.
Back in 2019, blockchain logistics company VeChain teamed up with iconic Australian winery Penfolds, deploying secure NFC chips into the bottles of Penfolds Bin-407 to prevent counterfeit bottles making it to market.
