Luxurious labels Louis Vuitton, Cartier, and Prada have decided to part with the Aura Blockchain Consortium to supply shoppers with a blockchain-backed seal of authenticity for their merchandise.
The consortium by the worlds largest luxurious product producers will present prospects with a further technique to show that their merchandise is real upon buy.
The counterfeit luxurious items market in the world over is valued at almost $1 trillion, in response to studies.
An ASSOCHAM report dating back to 2018 signified that the fake luxury goods market in India alone was worth Rs 6,000 crore. A significant part of the market is made up of goods from LVMH, Louis Vuittons parent company, Prada, and Cartiers parent company Richemont.
Blockchain authenticity will remain unquestionable as the digital ledger is not hackable and will record the entire transaction history of each item that will be purchased.
This will further make every item traceable from its first purchase all the way down to its return back to the fashion houses. Since all the certificates will be encrypted, there will be no room for fake certificates or hacked certificates.
The consortium hopes that this will increase peoples willingness to sell second-hand luxury goods. Despite brands going to be using blockchain technology, they have no plans currently in place to start accepting cryptocurrency payments, according to a Bloomberg report.
The consortium is already in talks with other luxury brands to add them to the group. The plan is to use the system as an industry standard instead of letting individual brands resolve it with their own solutions and methodologies.
According to LVMHs Managing Director Antonio Belloni Louis Vuitton, Bulgari and Hublot have already tried the technology, while Tiffany is the next to join the block.
There might be new processes involved in Aura Blockchain as the technology evolves further, said Cyrille Vigneron, CEO of Cartier.
Cartier recently tested out a new feature that uses blockchain technology ensuring that products that are being returned havent been altered or changed.
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