Home Blockchain Blockchain News Using Blockchain to track luxury items

Using Blockchain to track luxury items

Audio version of the article

The authentication process for watches is archaic, still done using warranty cards and paper certificates. Blockchain will transform the nature of watch ownership

For a global business worth a reported $17 billion, driven by increasingly sophisticated online platforms, the secondary – or “pre-owned” – watch market is constrained by a singularly analogue factor. For the authentication of watches, dealers still rely on the traditional warranty cards and paper certificates issued by manufacturers.

Given that counterfeiters can now clone “super fake” watches with such sophistication that even experts get duped, trusting mere paperwork for the authenticity of items is an increasingly dubious proposition.

But blockchain technology may offer a solution. The idea of using blockchain’s distributed ledger system to ensure failsafe authentication and accountability is already being trialled everywhere from the art market and auction houses to financial services and music-rights management.

In the watch market, it offers the opportunity to create a fixed and immutable record for any watch, safeguarding transactions and devaluing counterfeits. More fundamentally, proponents argue it could transform the entire nature of watch ownership, as a watch’s digital “identity” – and by extension, its connection back to the brand itself – remains secure and constant even as the watch itself changes hands multiple times.

French entrepreneurs Guillaume Kuntz and Marc Ambrus launched Watch Certificate, a side venture to their online marketplace Tradeewatches, in the teeth of the Covid-19 lockdown. For between €99 and €299 (depending on the value of the watch), their service enables clients to put a watch through a detailed checking and authentication process. A physical steel card is then provided, bearing a QR code linked to a digital certificate secured in the blockchain. The checks themselves are carried out by watchmakers local to the client, selected by Watch Certificate, and validated by independent experts. Kuntz describes this as amounting to the creation of a passport for a luxury watch, which can be viewed via a phone app.

“The certificate is a tamper-proof document, with 42 checkpoints and high-definition pictures including the movement and the serial number,” Kuntz says. “For the buyer, it is a guarantee that the watch is real, but it also details the condition and authenticity of the parts, which is particularly useful in the vintage world where each part can have a strong impact on the value of the watch.”

- Advertisment -

Most Popular

Improving Robots’ performance with Machine Learning

A small drone takes a test flight through a space filled with randomly placed cardboard cylinders acting as stand-ins for trees, people or structures....

Combination of Robots, AI and Data Analytics in your local Supermarket

Robots patrolling grocery store aisles and warehouses; so-called dark stores dedicated to online-only orders; data crunched in the cloud that allows retailers to identify and even...

5 (Most Common) Mistakes New Data Scientists Must Avoid

Emerging technologies like data science, machine learning, artificial intelligence are exploding by giving new dimensions to its applications. With business booming into data-driven technologies...

Using Blockchain to manage the supply chain COVID-19 vaccine

Blockchain could play an essential role in the distribution of the COVID-19 vaccine. Tackling COVID-19 will require the first-ever deployment of blockchain in the...

Role of Artificial intelligence in IVF

IVF is a physically and emotionally draining process and success isn’t guaranteed. But machine learning technology could improve the odds for couples trying to...

Machine Learning a major part of Google Sheets

It’s been a while since the first version of BigML’s add-on for Google Sheets. The post announcing it described how one could add predictions...
- Advertisment -