– The Key to Unlocking Possibilities in the Luxury Industry –
The luxury industry is perpetually stricken with stories of fraud, counterfeiting, certification tampering and black markets. Has there ever been a point where you worried about the authenticity of a product after purchase? Let’s say you just bought a Hermes bag worth ten thousands of dollars, what assurance do you have that your new bag is the original designer’s product? Yes, diamonds are a girl’s best-friend so counterfeit diamonds would be a fake friend right? How do you ensure that your diamond earrings were made from real diamonds? A lot of new-age painters replicate works of famous artists and sometimes, the forgeries are sold as original murals at exorbitant prices. Imagine you go back home and on a closer observation realize the signature on the painting is a fake.
This problem isn’t just unique to you, in a year, reportedly over $2 trillion worth of purchased luxury products are fake. Thanks to the revolutionary blockchain technology, Luxochain offers an easy way to verify the authenticity of luxury items before ownership is fully transferred to you.
Luxochain is a Swiss-based platform that is built on the blockchain technology designed to help buyers determine the authenticity of luxury goods before they make a purchase.
The operation of Luxochain via blockchain technology is relatively simple, here is how it works;
- Firstly, all luxury products have a unique serial code allocated to them at the production level.
- Luxury brands in partnership with blockchain platforms can register their products on the blockchain using this serial number. The serial number provides an abundance of information concerning the product – the date of production, the designers/brand, any history of previous owners, etc.
- Once data has been entered into the blockchain, it is recorded in the permanent database and can neither be edited nor deleted.
- When you make a purchase, Luxochain allows the scanning of the serial code in the blockchain database. The information returned at the end of the scan will help you determine the authenticity of the product.
- In a similar operation on the blockchain, the trader transfers the right to ownership to the buyer; the customer is then recorded on the blockchain as the new owner.
Benefits of Luxochain:
Luxochain platform is already emerging as the key to unlocking several possibilities in the luxury industry. Here are just a few of them:
Luxochain uses the blockchain technology to build shopper’s trust by providing transparency of the product’s information stored in the database. It tracks and records every part of the production process, from manufacturer to customer. Other than just offering this information, Luxochain makes the data easily accessible to customers, it puts information at your fingertips.
Luxochain offers the ultimate anti-counterfeiting solution to luxury brands and their customers.
The blockchain technology verifies the originality of goods using the unique serial numbers tagged at the point of production. When shoppers purchase a luxury product, they can verify its authenticity and then be registered as the official owner.
When an item is purchased, the seller transfers right to ownership to the buyer, this operation is recorded in the blockchain certifying the customer as the new owner of the luxury item. If the owner chooses to resale the product to someone else, the new ownership status is updated to the digital ledger too. In the event of a loss or theft, the owner is notified should someone attempt to trade the stolen product. The transaction can be traced to the product helping the owner recover the lost or stolen goods.
It all boils down to this – reliance and sustainability. At the end of it all, the primary goal of Luxochain is to give buyers confidence in whatever purchase the make. When customers are certain of the authenticity of the products, they are more likely to part with large amounts of cash than when they harbour doubts. As long as customers remain satisfied with their products, luxury brands stay in business to supply this product to the market.
Though bitcoin is blockchain’s foremost and most popular implementation, currently, blockchain has evolved into a general purpose technology, and there is no shortage of its implications for disrupting new technologies. Luxochain, through the implementation of blockchain technology in transactions involving luxury items, encourages brands to ensure ethical and environment-friendly practices while offering more transparency to consumers on the other end.