How Blockchain Technology Is Changing the Face of Hospitality – Rolling Stone

Crypto can be in the winter, but blockchain technology in the hospitality space continues to grow and evolve. There are a growing number of opportunities that blockchain technology brings to the hospitality industry – especially the restaurant world.

Blockchain and NFTs can revolutionize supply chain transparency. There are companies, such as EZ Labs, that focus only on blockchain solutions – without cryptocurrency – that provide ways to track the exact origin of purchased parts in the supply chain to offer security in the finished project. This is tracked on the blockchain so it cannot be faked. Penfolds already uses this technology for its wine exports to China; wine can be tracked on the VeChain blockchain platform. EZ Labs is another example of a blockchain wine tracking company.

Almost like a certificate of authenticity (but one that cannot be forged), blockchain technology can track and monitor every part of the process, from when it is picked, tapped and shipped to when it arrives. The touchpoints it moves through are all tracked on the blockchain. This is a way to really make sure the process is secure every step of the way. With 25.8 percent of bottles suggested to be counterfeit according to Euromonitor’s 2018 Global Illicit Alcohol Study, it’s even more important than ever to make sure the product is genuine. But I think this could go even further.

There are some areas of wine investment that are still woefully behind the times in terms of systems and processes. Legacy systems tend to remain very old fashioned with large companies acting for you. Your wine inventory really only exists on paper with faith in the holder. Blockchain technology can give individuals more transparency about their holdings and help reduce the risk of fraud.

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Blockchain can also help modernize the collection and trade of fine wine, opening it up to those with less capital like what we’ve seen in the investment world with apps. Currently, most places to invest in require you to put down between $5,000 and $8,000 before you even start investing. Many of them focus only on the biggest brand names, many well over $1,000 per bottle. If top-end wine and spirits bottles and kegs could be tokenized as NFTs, people could buy and trade far more freely without the need for a wine investment company. They could trade openly on digital platforms.

For those brands that sell wine and spirits, this is something that can really revolutionize the process. This can give you a direct line to those customers who can drop tokens for new wines as a reward. This can help with brand loyalty: Consider the airdrops that we already see in the crypto space. It can give brands new ways to raise capital directly from the customers who buy their products.

For restaurants, NFTs can replace the way tables are booked. We have already seen many top restaurants such as Fat Duck (Bray, Berkshire, England), Clove Club (London) and Alina (Chicago) sell tickets as pre-paid seats. No-shows are currently a major problem for restaurants. The restaurant I work at, Restaurant Story, only has 10 tables; if two don’t appear, it’s 20 percent off cover. If tickets were digital, secure NFTs, they could be easily sold and then traded, allowing those unable to place their orders to sell them on an open market or give them to friends or family without hassle.

The biggest disadvantage here is that there can then be a premium with people who sell on. But again, that’s where the function of the percentage of the resale of the NFT is paid to the restaurant. This means that the restaurant does not miss out on the benefit of being so sought after that people are willing to pay four times the value of the restaurant order.

The combination of blockchain technology running alongside physical products and services has a whole range of possibilities that are only just being explored.