Thanks to the revolutionary innovation that is the blockchain technology, Luxochain has been helping to fight the counterfeiting plague in the luxury industry starting with Italian luxury products which are statistically one of the most counterfeited luxury goods in the market. In the words of Davide Baldi, the CEO and co-founder of the Swiss company; Luxochain aims to become;
“the most important industrial reality in the anti-counterfeiting of luxury goods starting from products Made in Italy.”
How does the technology work?
The Luxochain technology works by allocating a unique digital passport called a Block ID to luxury products right at the point of production. The Block ID is an encrypted serial code associated with a uniquely verifiable token. The product’s digital certificate contains every relevant detail about the product and once it has been registered on the blockchain by the manufacturer, it is entered into the distributed database where it is public for everyone to see and can neither be edited nor deleted.
What has Luxochain planned for the February?
In late January 2019, Luxochain announced the launch of its unique blockchain based service to be implemented in the Luxochain system, to be used in addition to the certified system Block ID to fight counterfeiting. The technology will incorporate a combination of Radio Frequency Identification (RFID), Near Field Communication (NFC) and the brand new Fingerprint Authentication (FPA) to create the ultimate anti-counterfeiting system.
The Luxochain system uses a mobile app, which is available in beta version and compatible with both Android and iOS. Using the app, before a buyer purchases a luxury product, whether online or in a physical store, they can verify the authenticity of the product using the information attached to it as available on the database of the blockchain. This will be done by scanning the product code to certify the originality of the product. The product’s unique certificate will reveal information pertaining to the origin of a product, the model and make as well as its history across the supply chain.
At the point of sale, once a purchase has been completed, vendors will transfer ownership of the product to the buyer, the new owner. This new piece of information will be updated and reflected on the blockchain. Thus, in the event of a theft or in the case of illegitimate merchants, the system can block the product so as to boost the chances recovery of the product to its legitimate owners, thus combating counterfeiting and theft in the luxury market.
With the Luxochain, the middlemen are effectively removed from the system. People looking to purchase high-end products can simply register on the app and complete their purchases securely with their chosen brands within the mobile app. With the elimination of third parties, Luxochain also helps to streamline the relationship between lovers of luxury products and the vendors of such products in the market.
Luxochain is set to revolutionize the luxury industry and provided the leading luxury brands in the market make smart decisions regarding the implementation of technological innovation, the benefits of Luxochain’s range of services are almost limitless. The newly incorporated technologies will help provide a mechanism of transparency to help fight counterfeiting and build the trust of customers in the brands. Based on anticipation, it is expected that this system will be well received when the new technologies are fully implemented in new versions of the Luxochain mobile app in the coming months.