LVMH, the owner of Louis Vuitton luxury brand label, is set to unveil a Blockchain platform for tracking high-end products to ascertain their authenticity. This project is meant to combat the proliferation of counterfeit goods in the luxury industry.
The Blockchain platform is dubbed AURA and is expected to be deployed either in May or June 2019 for the $53 billion (as of 2018) business.
The users of AURA will not be only limited to Louis Vuitton but also Parfums Christian Dior which is another LVMH brand. Beyond the two brand lines, the Blockchain platform is set to be extended to support the tracking of LVMH 60+ luxury brands such as Hublot, Dom Pérignon, and Dior. There are also plans to allow competitors to utilize the platform.
LVMH Is Partnering With Blockchain Experts
Consensys-an Ethereum sandbox- and Microsoft Azure are the partner firms that are helping LVMH to develop the AURA platform.
Experts from the two firms have been able to build AURA from the Quorum toolbox which offers the permissioned version of the Ethereum Blockchain. Quorum was developed by JP Morgan. It enables the development of networks that focus on data privacy which gives AURA a high degree of privacy.
Tracking Luxury Goods
An unnamed inside source has revealed to Coindesk that AURA will proffer proof-of-authenticity solutions to high-end products. Firstly, the system will trace the origin of raw materials to determine whether the production processes add value to the item. Secondly, the platform would record key supply chain events from the point of sale to the stores and even beyond to the second-hand goods markets.
The AURA platform will also play a vital role in protecting creative intellectual property rights that are often prone to theft. The Blockchain features will also offer anti-ad fraud solutions, exclusive offers ads and events for specific markets and brands, etc.
Other similar platforms to AURA include Vechain and Arianee.
AURA Will Run Behind The Products
Customers of luxury brands that partner with LVMH in the project will not be able to directly see the AURA platform as it will not be available as a mobile app. However, it will serve as an industry consortium that powers various apps for products such as Dior or Louis Vuitton so that clients can prove the authenticity of their brands.
Avoiding Conflict Of Interest
The idea of LVMH accommodating rival firms on AURA Blockchain is in itself a tricky situation as a conflict of interest among the firms is likely to be a concern. However, to create a level field for all brands, LVMH will forfeit all its intellectual property rights to an entity that is co-owned by all members.
Quorum’s data privacy tools will then protect information leaks to non-members or customers.
LVMH Is Setting New Standards For CryptoKitties
LVMH chose to work with one of Quorum which is one of Ethereum’s enterprise sandbox to build AURA. This ensures that the new platform operates on ERC-721 non-fungible token (NFT) standard that allows immutable digital representations. For instance, a second-hand handbag can be trailed to the previous owner, and even to the alligator farm where the leather came from in real time.
The LVMH CEO, Bernard Arnault, is committed to making the Paris-based luxury brand to be the go-to luxury shop that can be trusted.