Luxury firms like Louis Vuitton, Cartier, and Prada have teamed up on a blockchain ecosystem that will give their clients the possibility to verify their good’s authenticity.
The network was developed in collaboration with ConsenSys and is called Aura Blockchain Consortium. The luxury groups introduced it on Tuesday and they believe this service will help the industry as well.
“By joining forces with other luxury brands on this project, we are leading the way on transparency and traceability.”Toni Belloni, LVMH Managing Director
In an interview with Bloomberg, the companies stated that even if they are approaching this kind of technology, they won’t go in the digital currency direction, and no crypto will be accepted for purchases.
One of the major issues of this industry is it has to deal with a lot of counterfeit products. This brings considerable losses to the companies and also displeasure to scammed clients. But how can blockchain technology change it?
Blockchain technology validates transactions in a digital method, and it may be used in many ways, not just as a foundation for cryptocurrencies. The Aura Blockchain Consortium will give customers an encrypted document that will guarantee them the originality of the product. Even though luxury groups already provide purchasers with authenticity certificates, they can still be counterfeit. A blockchain network can make them even more secure.
“Consumers can easily and transparently follow a product’s lifecycle, from conception through distribution, with trusted data throughout, and thus strengthen their relationship with their favorite luxury brands.”The companies stated.
Richemont-owned Cartier has already tested an online service for returning products. It allows clients to upload a picture of their article on the blockchain network to prove that it is in the same condition as when it was delivered.
“It’s something simple, but it means the trust between the two parties is enhanced.”Cyrille Vigneron, Cartier Chief Executive Officer
Joining forces is seen as the right solution for these companies, rather than build a separate network for each one of them. The Aura Blockchain Consortium is currently talking to other firms to be part of this new service, but it is yet unknown to which ones.