LVMH to offer blockchain certification of luxury goods
LVMH, ConsenSys and Microsoft have announced the launch of AURA, a consortium to power the luxury industry with blockchain technology. The AURA platform will enable brands to ‘track and trace’ luxury goods via blockchain certification. This can be used by brands to track everything from production parts through to customer aftercare. Development on the initiative was unofficially revealed in March and will start with LVMH brands, initially Louis Vuitton, before widening its participation.
The key technology behind the initiative is ‘Tracability Smart Contracts’ that blockchain company Consensys have been heavily involved in developing. Tracking and tracing products via the blockchain will prove authenticity and goes some way towards tackling the problem of fake designer goods – an industry reportedly worth $460 billion. AURA can also be used to give additional consumer benefits such as product aftercare, enhanced customer service and loyalty schemes. The AURA platform aims to make itself available to the whole of the luxury goods industry via an API that allows brands to interact with AURA on a white-label basis.
Ken Timsit, Managing Director of ConsenSys Solutions, the enterprise blockchain arm of ConsenSys, commented:
‘AURA is a groundbreaking innovation for the luxury industry…protecting the interests, integrity, and privacy of each brand, leveraging Ethereum blockchain technology in a truly decentralized way.’