LVMH is going to be launching a blockchain platform that will help confirm the authenticity of high-priced goods. One of the benefits of going down this road for the luxury conglomerate is going to be that they are not going to have to rely on third parties blockchain technology.
Investing In Authenticity-tracking Blockchain
Imagine knowing the wheres, hows and whats of your Saintonge bag. Wouldn’t it be great if you are able to determine the whole journey of its lifecycle. I am talking about being able to trace your Saintonge from the alligator farm to the store. If you grab it second hand, then you will be able to know the multiple chains of owners that have bought and sold it.
Looking to make this a possibility the LVMH blockchain team has been working with ethereum design studio ConsenSys and Microsoft Azure. Together they are building AURA using a permission version of the ethereum blockchain which focuses on data privacy called Quorum which was developed by JPMorgan.
According to Coindesk who spoke to a source close to the project, when it comes to challenges like the problems encountered by the blockchain venture between IBM and Maersk, LVMH will donate all intellectual property (IP) to a separate entity. That entity, in turn, will be owned by the participating brands. The source explained: “So Gucci, for example, could decide to join the platform and be a shareholder – in which case their claim to the IP would be as great as Louis Vuitton’s claim to the IP. That is the main difference between this project and the IBM Maersk project, which hopefully makes it much more comparable to Komgo, the trade finance consortium.”
With whispers circulating that AURA will go live in May or June 2019 with LVMH brands, Louis Vuitton and Parfums Christian Dior, Coindesk reported that neither LVMH nor its partners ConsenSys and Microsoft would comment ahead of the project’s official announcement. Following its launch, the cryptographic provenance platform will then be extended to over 60 of the company’s other brands.