LVMH, Louis Vuitton Owner, To Use ‘AURA’ Blockchain For Authenticating And Tracking Luxury Items
Louis Vuitton Owner Will Be Using Blockchain Technology To Track Luxury Goods
The owner of the recognized luxury brand Louis Vuitton, LVMH, will be using blockchain technology in order to track the luxury goods they sell. According to a recent report released by CoinDesk, the intention is to provide authenticity of high-priced goods.
Louis Vuiton To Use Blockchain Technology
Blockchain technology continues to expand across several industries. This time, Louis Vuitton aims at improving its logistics processes by implementing a distributed ledger technology solution. The new platform is going to be called AURA and it is expected to go live between May and June this year.
The platform will be offering services to two LVMH’s brands, Louis Vuitton and Parfums Christian Dior. In the future, the intention is to reach more than 60 luxury brands and start working with its competitors as well.
The company has been working in stealth mode for a year with ConsenSys and Microsoft Azure. AURA will be a permissioned version of the Ethereum blockchain Quorum that is currently being used by JP Morgan.
With this platform, it will be possible to know whether the goods transacted are authentic. Moreover, the blockchain network would allow individuals to have information about the origins of the materials used.
On the matter, a source involved in this project said:
“To begin with AURA will provide proof of the authenticity of luxury items and trace their origins from raw materials to point of sale an beyond to used-goods markets. The next phase of the platform will explore protection of creative intellectual property, exclusive offers, and events for each brands’ customers, as well as anti-ad fraud.”
At the moment, LVMH controls more than 60 luxury brands around the world. Some of them are Dior, Dom Pérignon and Hublot. Just in 2018, LVMH was able to register a revenue of $53 billion.
It is worth mentioning that LVMH aims at offering service to other brands. Instead of creating an app, AURE will be running behind these brands.
In order to make it attractive for other brands, LVMH will be donating the intellectual property to another entity that will be owned by participating brands. If there is another recognized company, for example, Gucci, that wants to join the platform, it will be able to claim its intellectual property part. Since the platform is based on Quorum, the privacy features included will make it easier for brands to store their information and have it protected.
LVMH will be working with an enterprise solution of Ethereum that works with ERC-721 non-fungible tokens (NFT). These tokens allow for digital representations that are not only immutable but they also represent only one item. One of the most popular platforms using this NFTs is CryptoKitties.