Louis Vuitton and Dior just some of the luxury brands going Blockchain by partnering with Microsoft and Blockchain startup ConsenSys.
Luxury Brand Louis Vuitton Meets… Ethereum
Announced via a press release May 16, LVMH, the owner of various high-end fashion names, confirmed it was seeking to overhaul its business using the technology.
The plans involve a whole new platform dubbed AURA, built on the Ethereum blockchain and which leverages the Microsoft Azure cloud platform.
“AURA makes it possible for consumers to access the product history and proof of authenticity of luxury goods — from raw materials to the point of sale, all the way to second-hand markets,” the press release summarized.
The move marks a new frontier for the luxury market, Blockchain participation of which has so far taken a more limited form. As Bitcoinist reported, integrations have included schemes such as art auctions and e-commerce.
Vuitton, for example, which began to increase transparency in its supply chain in 2016, will use AURA as the last step in its traceability efforts.
“During production, each product is recorded on the shared ledger, irreproducible (sic) and containing unique information,” the release continues about how the platform will work.
At the time of purchase, a consumer can use the brand’s application to receive the AURA certificate containing all product information.
AURA ‘Truly Decentralized’
Elements of the operation mirror those currently underway in other industries keen on utilizing blockchain for their supply chains.
Those industries have become increasingly varied, and now include everything from metals to coffee and even lettuce shipments.
While some implementations have attracted criticism given blockchain’s comparatively nascent state, for ConsenSys, the benefits of introducing decentralized architecture make the luxury fashion project worthwhile.
“AURA is a groundbreaking innovation for the luxury industry,” Ken Timsit, managing director of the company’s enterprise blockchain arm ConsenSys Solutions commented.
ConsenSys is proud to contribute and to work with LVMH on an initiative that will serve the entire luxury industry, protecting the interests, integrity, and privacy of each brand, leveraging Ethereum blockchain technology in a truly decentralized way.
So far, Dior and Louis Vuitton are the only participants in the program, with executives revealing discussions to sign up others were ongoing, without naming specific brands.
The unveiling follows news ConsenSys was seeking $200 million in outside funding after a challenging few quarters which saw staff layoffs earlier this year.