During the production phase of a product, a unique digital identifier (ID) is created. It contains all the information related to the product: where it was made, from what materials, and also at what stage it is. All this information about the status of the product is entered into the blockchain. The ID is used by the buyer to verify the authenticity of the purchase.
At the marketing stage of the product, a record of each transaction is noted in the certificate of authenticity. This happens during both the first and subsequent resales.
At the stage of purchase, the client is provided with a certificate of authenticity. It has the Aura logo and the product ID written on it. If the emblem can be faked, then the ID entered in the blockchain is impossible. The certificate guarantees the originality of the item and gives access to information about its production.
At the stage of caring for a thing, the owner must record information about maintenance and repair on the certificate. When repairing the product, some parts may be partially or completely replaced. If this is not noted in the certificate, then it will be difficult to prove the authenticity of the thing during resale. When reselling a fake, it is easy to detect – if the seller has a certificate, then the product is original. If not, then a copy.
Benefits for Customers
Customers can check the authenticity of the product without intermediaries, check the ownership of goods and access information about the history of the product.
Benefits for Project Partners
Aura makes blockchain technology available to all project partners. The platform can be used not only by the founders, but also by any luxury brands.
Benefits for Brands
Ensuring the production and processing of products in accordance with brand standards. Since the entire path of the product from the choice of material is recorded on the ID, it becomes easier for the brand to control production standards.
Benefits for the Market
Aura protects the luxury market from fakes and gives you the opportunity to control secondary sales.
To check the originality of a branded item, buyers need to obtain a certificate of authenticity. The first blockchain platform in the history of luxury, the Aura Blockchain Consortium, allows buyers to verify the originality of luxury branded items without resorting to intermediaries.
Aura was developed in 2018 by LVMH, along with major luxury brands Prada and Cartier, as well as Richemont. Among the co-founders of the OTB Group and more recently Mercedes Benz. In creating the platform, they teamed up with the developers of the ConsenSys project.
The exact cost to LVMH of this system is not known, but during the launch of the Aura Blockchain Consortium, LVMH Group CEO Antonio Belloni said that the company had invested "several millions" in the creation of the initial blockchain. The founders of the consortium will invest in the further development of the system, but for now all its members pay an annual license fee.
LVMH (Moët Hennessy Louis Vuitton) is a French luxury goods company headquartered in Paris. It owns over 70 luxury fashion brands including Christian Dior, Fendi, Givenchy, Loewe, Kenzo, Celine, Tiffany & Co, Louis Vuitton, Guerlain, Moët & Chandon, Hennessy.
The main goal of creating Aura is to use blockchain technology as a guarantor of product authenticity. Blockchain makes it possible to store and transmit secure information. The data written to it cannot be hacked or changed. At first, the Aura service was available only for Dior and Louis Vuitton products (the absolute “champion” in terms of fakes). But since the spring of 2021, when the Aura Blockchain Consortium appeared, other clients can also use it. OTB, Louis Vuitton, Prada, Cartier, Bulgari, Miu Miu, Maison Margiela, Hennessy and Hublot brands use the platform to protect their products from fakes.
With Aura, customers can learn the history of a purchased product, obtain proof of ownership, and obtain warranty and maintenance information.“The advanced Aura Blockchain technology matches the product ID with the customer ID,” says the LVMH website, “forming an infrastructure based on a chain of secure and non-reproducible digital blocks. In this way, customers can access product history and authenticity at every stage of the production cycle, from the extraction of raw materials to the point of sale.”
For example, the famous watch brand Hublot has developed a digital electronic certificate that is stored on the Aura blockchain. It gives buyers the opportunity to verify the authenticity of their watches. To do this, you need to take a photo of your purchase and send the photo to the Hublot e-guarantee app. With it, you can check the authenticity of the product, and get the status of the guarantee. In case of theft, the certificate reflects this status to prevent resale.
If you buy a watch in the secondary market, then to check the originality you need to take a picture of the watch and send the photo to the Hublot app. The application will check the originality of the watch and issue a transaction report.You can also find out in it whether the watch is stolen or officially resold.
Other integrations that the Aura Blockchain Consortium is working on include tracking features, using RFID, NFC, and NFT to create “digital twins.” This and more is being brought to life through a partnership with blockchain development company Temera.
In 2022, Mercedes-Benz joined the Aura Blockchain Consortium. The German group has become the fifth member and the only automotive player in the blockchain platform dedicated to the luxury industry.
In the spring of 2023, LVMH introduced a new feature to its network called "Multi-Token minter" (MTM). MTM allows consortium members to create smart contracts that can be deployed on the Aura blockchain, as well as on any public blockchain, including Ethereum, Solana and Cosmos.
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