A trio of high-end luxury companies are coming together to tackle counterfeit goods through a blockchain-based seal of authenticity.
The collective effort aims to give shoppers a level of assurance that the pricy products being purchased are authentic.
As reported by CoinDesk in March 2019, LVMH enlisted a full-time blockchain team under the Aura codename to develop a cryptographic provenance platform for the luxury market. The team worked closely with Ethereum design studio ConsenSys on a project that finally appears to be coming to fruition.
The firms told Bloomberg that although blockchain technology is being used to prove the authenticity of luxury products, the brands have no plans to accept cryptocurrency as a form of payment.
"Among LVMH Maisons, Hublot, Bvlgari and Louis Vuitton are already active on the platform," LVMH said in a lavishly worded press release. "Hublot, for example, has launched a digital e-warranty, which is stored in the Aura infrastructure and allows customers to verify the authenticity of their watch via a simple photo taken with a mobile phone."
According to the latest statistics released by the consulting firm Bain & Company, the luxury market remains lucrative with online sales reaching $58.9 billion in 2020, up from $39.7 billion in 2019.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.