Blockchain Provides Verifiable System for Authenticating Luxury Goods

The luxury goods market has grown by leaps and bounds in recent times with more and more people joining the elusive millionaire or billionaire club, which is currently valued at three trillion. Apart from the works of art, and diamonds, the market primarily constitutes of luxury apparel and accessories. For a buyer who has paid a hefty amount for an artwork, a fur coat, a handbag, or a diamond, it is essential to know if it is worth the cost. This is where Blockchain the digitized, decentralized public ledger comes in to picture.

One of the most popular uses of Blockchain is in the diamond industry. For long, unscrupulous vendors have been using popular social media channels such as Facebook and Whatsapp to pass of “blood diamonds” as good ones using forged papers. With Blockchain it is possible for a potential buyer to authenticate whether the proceeds from the diamond they have purchased could be used to aid military rule in conflicted areas, a cause of concern in the world today.

Appraising the worth of luxury goods

One of the key roles played by Blockchain is related to the way it appraises everyone in the value chain about the worth of the luxury good. It informs the customer about the point of origin of a luxury good say a diamond. Blockchain because of its very nature, encourages transparency and provides a transparent fair pricing index which is not reliant on the whims and fancies of the merchant’s valuation of the good. Therefore, customers can be confident about the price they have paid for their purchase.

Not just for appraising the worth of a luxury item, the untapped potential of Blockchain solutions for luxury goods could be used for minimizing fraud and counterfeiting practices and helping both the merchant and the consumer validate whether the goods they have at their end is the real thing. Blockchain could also help stabilize the luxury goods market, which is currently in a state of flux as there are billions of dollars’ worth of counterfeit products that are competing with the authentic goods.

Future of Blockchain solutions for Luxury goods

With consumers becoming more and more concerned about the point of origin of their luxury goods and showing their willingness to pay more for the product, Blockchain development companies can provide both the merchants as well as the consumer with a very vital asset — trust and transparency. By tracking the entire life cycle of a luxury good right from sourcing to the final product, this technology assures the customer the product they own is from the label, and not a cheap replica.