Aura Blockchain: A New Reality for the Luxury Industry
Blockchain technology has been actively implemented in various areas of human life, from IT to medicine. The luxury industry is no exception. In 2021, luxury brands joined forces to create a blockchain solution that raises the standards of the premium segment.
Aura Blockchain is a blockchain consortium created in April 2021 by LVMH Moët Hennessy, Prada Group, Cartier, part of Richemont. In October, the luxury brands were joined by the holding corporation OTB Group, and in spring 2022, by the Mercedes-Benz company.
Source: Twitter
The mission of Aura Blockchain is to raise the standards of the luxury industry and improve customer service quality. To achieve this, the first non-profit association of luxury brands plans to use blockchain technology and develop a circular business model that is sustainable and transparent.
How does the Aura Blockchain consortium work?
The Aura Blockchain project is fully open to all industry participants. Large and small brands, technical partners, supply chain and sales experts, industry and government organizations, trade associations, and partners in creating financial, technological, and infrastructure ecosystems can all join the consortium. The community welcomes representatives from all stages of luxury goods production and sales who are interested in improving the processes of buying, owning, reselling, and recycling.
The platform is based on the Quorum blockchain. Each brand must manage at least two nodes to support it. The blockchain maintains a shared ledger and is updated according to the network consensus provided by the participants. The centralized component of the project includes off-chain services (including API interfaces), interface applications for interacting with customers, and blockchain services that act as intermediaries between the blockchain and third-party applications.
Source: auraluxuryblockchain.com
Opportunities for Brands
Aura Blockchain offers luxury industry representatives the ability to eliminate industry-specific problems and meet the demands of modern customers. The benefits of the project include:
Aura Blockchain offers luxury industry representatives the ability to eliminate industry-specific problems and meet the demands of modern customers. The benefits of the project include:
- Ease of use and flexibility of the platform. Any brand can join the project, even if they have not worked with blockchain technology before. At the same time, the platform can meet the needs of each user through a variety of individual solutions.
- Guaranteed data protection. Thanks to cryptographic protection of information, the data of all brands are safe, can be controlled, and certified worldwide.
- Coverage of the entire product life cycle. The platform allows you to obtain information about every stage of the luxury item's existence, from production to recycling. The platform also provides the ability to control the second-hand market.
- Direct interaction with customers, ensuring impeccable service and assistance in solving any issues (receiving electronic guarantees, taking care of the product, etc.).
- Collaboration with leading luxury brands.
- Carbon neutrality and a transition to 100% renewable energy use by 2025.
Opportunities for Customers
Aura Blockchain offers luxury goods enthusiasts the following possibilities:
- Authenticity verification: all luxury brand products that have joined the consortium come with a unique certificate, guaranteeing their authenticity and compliance with industry standards.
- Access to transparent supply chains: the platform enables customers to access the entire product lifecycle, from raw material sourcing to after-sales services and recycling/reselling.
- Ownership transfer: if desired, the owner can officially transfer the ownership rights of the product, for example, by gifting it.
- Direct communication with brands: customers can directly communicate with the brands, participate in community activities, and receive personalized event invitations, and after-sales services.
The use of innovative technologies and complete transparency in the processes are undeniable advantages for any luxury brand. That is why representatives of the luxury segment are trying to put their ambitions and leadership aspirations aside, and coming together to improve the world of luxury.
