LVMH teamed up with Microsoft and ConsenSys in order to build a new blockchain-powered platform with the purpose of allowing the consumers to verify luxury good authenticity. The newly created system is named Aura and its purpose, according to the consortium, is to “serve the entire luxury industry with powerful product tracking and tracing services.”
The two luxury brands that were mentioned as already being involved are Christian Dior and Louis Vuitton. There are now discussions with many other brands that would be interested in using the technology. According to the official press release:
AURA makes it possible for consumers to access the product history and proof of authenticity of luxury goods – from raw materials to the point of sale, all the way to second-hand markets.
Aura will be capable of seeing a product’s unique information on a ledger that will be shared. The customers will then be able to identify the product with an official app. This also offers a certificate that shows provenance details.
The new blockchain platform was built on the Ethereum blockchain, with the use of Microsoft Azure. It will be capable of offering environmental and ethical information, warranty services and even product care instructions.
The developers hope that rival luxury brands will also use the new blockchain technology with the purpose of strengthening customer loyalty and intends to offer the platform as a tailor-made unique service. ConsenSys managing director Ken Timsit, declared:
AURA is a ground-breaking innovation for the luxury industry. ConsenSys is proud to contribute and to work with LVMH on an initiative that will serve the entire luxury industry, protecting the interests, integrity, and privacy of each brand.
Initially, the reports that AURA was being developed appeared in March and there is definitely a market for it. The high-end brands are now actively investing in blockchain technology with the purpose of confirming product provenance. For instance, Ailsa Bay, premium liquor brand, is now planning to release a new scotch whisky that will be tracked with the use of blockchain technology.
The development of Aura and the support of the two large luxury brands mentioned makes it quite clear that blockchain can be used for tracking purposes and to prove that a specific product is original.