Some of the world’s leading luxury brands are coming together to offer a blockchain solution that helps customers identify the authenticity of their products.
Louis Vuitton, Cartier and Prada partner on a blockchain solution
Louis Vuitton, Cartier and Prada are set to offer a blockchain solution to customers seeking an extra seal of authenticity for their luxury goods. In a joint statement earlier today, the brands said the blockchain-enabled solution would be available to all luxury brands. This move will ensure they provide shoppers with the assurance that what they’re buying is authentic.
The trio also added that the fix would make the products more traceable and transparent. The blockchain solution provides an encrypted certificate of guarantee to customers. Namely, this would help buyers know whether a product is counterfeit or not.
Moët Hennessy Louis Vuitton (LVMH) managing director Antonio Belloni said that these certificates have existed in the industry for a while. Still, blockchain’s reputation makes them better. In fact, the brands would be using the Aura Blockchain to track their products. Aura matches a product ID to a client ID through a series of secure, non-reproducable digital blocks that provide customers with a certificate of authenticity.
Belloni said, “Trust is the one key on which our industry is founded and one we really want to preserve.” He added that most of their younger customers are concerned about the authenticity of their products. This is mainly why the company is deploying the technology. In the final analysis, the integration of this blockchain solution would allow people to resell luxury goods on the secondary market more easily.
Cartier chief executive officer Cyrille Vigneron believes the Aura Blockchain is still young and has room for further growth. Meanwhile, Belloni said the consortium is a way to set an industry standard instead of each brand developing its individual solution.
Brands not yet ready to accept cryptocurrencies
Digital currencies have gained huge adoption in recent months, with companies such as Tesla, TIME and Christie’s providing crypto payment options to their customers. Although the luxury brands are also deploying blockchain technology, both Vigneron and Belloni said they don’t intend to accept cryptocurrencies as payment for their goods just yet.