LVMH introduces Blockchain Technology to track luxury goods - luxury Blogs

LVMH introduces Blockchain Technology to track luxury goods

A technology formerly created to optimize and protect the cryptocurrency Bitcoin, Blockchain cannot be tampered with or altered by any entity. It will be used by the French conglomerate to verify the authenticity of its high-priced goods, trace it?s origins and eliminate counterfeit issues.
Over the last twenty years, the market for luxury goods has been valued at approximately $3 trillion globally. However, the Global Brand Counterfeiting Report 2018 estimates that the losses suffered due to counterfeiting have amounted to $323 billion in the year 2017, with luxury brands incurring a loss of $30.3 billion through internet sales.
Plagued by a flourishing counterfeit industry driven by fraudulent imitations and near-original replicas, the largest luxury conglomerate LVMH has come up with a solution to ensure the authenticity of every product bearing its label ? the Blockchain technology. To circumnavigate a products life cycle, blockchain technology is being viewed as a trusted verifiable system. Codenamed ‘AURA’, the cryptographic derivation platform is meant to diligently track the movement of goods by Louis Vuitton, as well as other LVMH brands, which include Christian Dior, Fendi, Givenchy, Bulgari, etc.
With this platform, the company can provide their consumers with the necessary data to determine the origins of the goods tracing it to the raw material manufacturing stage, the point of sale and eventually to the used-goods markets.
The functioni...