The multinational conglomerate LVHM, owner of multiple luxury brands like Louis Vuitton, Hublot and Dior, is all set to launch a blockchain-based project that will be utilized by the users to trace the authenticity of luxury goods, as per the reports.
The blockchain powered project is been named as AURA which is the cryptographic provenance platform will include Louis Vuitton and another brand of LVMH namely Parfums Christian Dior. The blockchain powered system is hopeful of going live in May or June. LVMH will be adding more than 60 high priced products and other products from its rivals.
The LVMH conglomerate has already hired a full-time blockchain team secretly for over a year, and the same blockchain team is working closely with ConsenSys Ethereum design studio and also with Microsoft Azure, as reported by two familiar people.
The permission-less blockchain network will not be implemented by AURA system publically rather the product that is being built on a permission version of the Ethereum blockchain platform known as Quorum is supposed to be used by AURA. Quorum is a modified version of the Ethereum that was developed by JP Morgan; the project is expected to go live in May or June. The main focus of the project will be over data privacy.
Ahead of the official launch of the project nor LVMH and neither its associates ConsenSys and Microsoft commented over the project. However, some sources have stated that Aura will provide the proof of authenticity of high priced goods and will even monitor their origins from raw materials to the sale and outside used goods markets. The next stage of the platform will examine the safety of creative intellectual property, special offers, and events for every brand of customers and even anti-ad frauds.
The desire of LVMH with AURA is to provide white label service to other brands which also includes its group rivals. LVMH is not the first company to suggest a tracing blockchain project, different luxury provenance platforms and mini consortia like Arianee and Vechain had even proposed about it.
Sources who are linked with the project say, LVMH has asked why it will allow third parties to place themselves within its brands and also between their partners at a time when blockchain is considered as a technology for removing intermediaries.
Sources described that if you are the customer of the high priced brand, then you will not be noticing AURA; rather you will be noticing the Louis Vuitton app or the application of other luxury brands.
LVMH has researched the issues that are emerging within IBM and Maersk due to its blockchain partnership. As a solution, the platform will be distributing the intellectual property (IP) to the individual entity and then that entity will in-turn will be acquired by the brands that have participated.
The data privacy tool of Quorum must ensure that the information is not leaked within the brands or their respective customers. The project is in accordance with the industry standards of luxury goods, especially with the anti-counterfeiting efforts of the European Union Intellectual Property Office.