Three of the world’s top luxury goods companies are turning to the blockchain to try to halt the counterfeiting of their super expensive products.
LVMH (EPA:MC), Prada and Cartier (SWX:CFR) have set up a collaboration known as Aura that will prove that goods being bought are authentic and not knock-offs.
Louis Vuitton, LVMH’s luggage arm, has been working on cryptographic platform since 2019, said Bloomberg, and recently joined forces with Ethereum design studio ConsenSys on the anti-counterfeiting stamp.
At present that is all it will be used for said the report, with no plans by any of the three to start to accept cryptocurrency as a form of payment.
Fakes are a huge cost for the industry with LVMH alone said to employ 60 lawyers and spend tens of millions of dollars a year in legal cases against counterfeiters.
One report last year estimated the trade in counterfeit luxury goods at US$1.2trn with much of the activity being conducted online.