If you’ve been following this series of blockchain articles, you would know that the technology has a wide array of applications outside of bitcoin. We have seen how blockchain can change the healthcare industry, its usage in shipping, and in video games, but also the technology can be used in the fashion industry to combat counterfeits.
It was recently announced in late April that Moët Hennessy Louis Vuitton (LVMH), Cartier, and Prada are coming together to offer a blockchain solution as an extra seal of authenticity to their customers.
Counterfeiting has been a massive issue in the fashion industry for decades and according to the research firm Frontier Economics, the counterfeit global trade is set to hit $991 billion by 2022, which is almost double the amount made in 2013. A lot of money is at stake here so these brands are looking to use Aura Blockchain to protect their products and ensure their authenticity.
Cariter CEO Cyrille Vigneron said regarding Aura Blockchain that “it’s something simple but it means the trust between the two parties is enhanced” and he would later comment that auction houses might look into it.
What is Aura Blockchain?
LVMH, Cariter, and other luxury brands came together to create a nonprofit blockchain platform called the Aura Blockchain Consortium which uses blockchain technology to track any of their products via a unique digital mark. This digital mark is based on a non-fungible token, and all the brands in the network are active participants in governance and strategy.
Aura is a private fashion blockchain so only the brands on the network can use it, but it’s not the only one as there also exists Arianee that works with Audemars Piguet, Vacheron Constanti, and Givenchy, just to name a few.
Timothy Iwata Durie, Cartier’s global innovation director, said the Aura network assigns each product with a “unique digital identity” which houses historical data, and this data can be attached via different methods such as a QR code or an RFID tag. This technology has been around for a while, but given the pandemic and the increase in remote selling, it has made this tracking method a lot more important and vital to the company.
Durie would later go on to say “Consumer needs have shifted, and the focus on sustainability has accelerated the urgency…”
Following the Rules
That's it. Forget 'authenticity cards'. Soon ppl will flex an $AURA token which points to the authenticity and provenance of their piece.
But to pass the token, as an NFT I assume, the exchange should be on the blockchain. Curious about the UI and UX. https://t.co/ajQKCRdKdM
— Ken Osh (@kenoshtan) April 20, 2021
Belloni said that Aura is in contact with other brands, but won’t say who would be joining the network next.
Belloni also states that there are currently no plans to accept Bitcoin or any kind of cryptocurrency at the moment, although Microsoft and ConsenSys, a blockchain software company, are working together to develop infrastructure that could allow luxury brands to allow cryptos to be used as payment.