The First Global Luxury blockchain; LVMH, Richemont and Prada Join Forces in Blockchain Consortium
The Three rival names in the European luxury sector have established a new blockchain consortium that will allow shoppers to track the provenance of their purchases and authenticate goods.
LVMH Moet Hennessy Louis Vuitton first unveiled their plans for a global blockchain-based system in 2019, which will be joined by Prada Group and Compagnie Financière Richemont in the Aura Blockchain Consortium.
Aura Blockchain Consortium is a nonprofit group that will promote the use of a single blockchain solution open to all luxury brands worldwide.
LVMH Moet Hennessy Louis Vuitton SE, Prada Spa and Compagnie Financiere Richemont SA’s brand Cartier have partnered to develop a global blockchain that will help consumers better trace and authenticate their products, the luxury companies said Tuesday.
The platform, known as the Aura Blockchain Consortium, “enables direct-to-consumer access to product history and proof of authenticity,” and will “record information in a secure and non-reproducible manner and generate a unique certificate for its owner,” they said.
This blockchain will help the three companies as well as all luxury brands world-wide that want to employ better manage issues that are common to the all industry as such traceability, sustainability and authenticity, LVMH said.
“Several advanced conversations are also being held with brands both within founder groups and independent brands to join the Consortium soon,” the companies said.
The brands Hublot, Bvlgari, Louis Vuitton, Cartier and Prada are already active on the platform, they added.
Many sectors are looking at the possibility of using blockchain, the distributed ledger system that underpins Bitcoin and other cryptocurrencies. Blockchains are unalterable and distributed hence the data stored on them is trustworthy and secure.
Each product will be given a unique digital code during the manufacturing process that will be recorded on the Aura ledger. When customers make a purchase,the login details will enable them to locate the history of product, including its origin, components, environmental and ethical information, proof of ownership, a warranty and care instructions.
LVMH Managing Director Toni Belloni states, “The Aura Blockchain Consortium is a great opportunity for our sector to strengthen our connection with customers by offering them simple solutions to get to know our products better. By joining forces with other luxury brands on this project, we are leading the way on transparency and traceability. I hope other prestigious players will join our alliance.”