LVMH “the world leader in luxury” is reportedly in the midst of launching a blockchain in order to authenticate its goods. As the owners of the distinguished Louis Vuitton brand, the luxury goods company could lead a major shift away from fake items plaguing our shelves.
A blockchain backed platform code-named AURA is said to be put in place around June this year. However, the technology will be seen in Louis Vuitton and Dior before being employed into all of LVMH’s 60 companies. After being implemented across all 60 brands associated with LVHM it is suggested that the platform may then become available to other luxury brand competitors.
According to sources involved with the project, a blockchain development team has been secretly working for over a year. The project is said to be produced in close partnership with the Ethereum design studio, ConsenSys and Microsoft Azure. Although an official statement has not yet been released by any companies, a source who claims to be involved made this statement to CoinDesk:
“To begin, AURA will provide proof of authenticity of luxury items and trace their origins from raw materials to point of sale and beyond to used-goods markets. The next phase of the platform will explore the protection of creative intellectual property, exclusive offers and events for each brands’ customers, as well as anti-ad fraud.”
AURA is said to have been built on a permissioned version of Ethereum blockchain named Quorum, which has been developed with data privacy in mind.
A report from 2016 claims that counterfeit goods cost the UK economy £17.3bn and destroyed as much as 72,000 British jobs. The luxury goods conglomerate is a major player in the industry with over 60 brands from Marc Jacobs to Tag Heuer. Implementation of AURA has the potential to mutually benefit economies and brands alike.