Do you have any luxury goods or plan to buy one? Why not secure yourself and check their authenticity? No one wants to pay a lot for counterfeit products. Can you really trust your seller especially if you want to buy a second-hand product? There is an innovative project, that leverages blockchain technology to keep a proof-of-authenticity for luxury products and it's called Luxochain. This company recently joined a fight with luxury goods counterfeits and wants to become a worldwide reference for the authentication of luxury products on the blockchain.
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Bear with us and you will learn more about Luxochain origins, features, and advantages in protecting buyers from being cheated.
What is Luxochain
Luxochain is a company that launched a unique system to secure people who want to buy luxury goods from getting counterfeits. This system guarantees buyers the authenticity of the item confirmed through blockchain certification.
Anti-counterfeiting is a strategy that uses identification techniques that, in order to be functional and effective, must allow trackability and traceability (track & trace) of information.
Luxochain provides genuine luxury items with Digital Certificates of Authenticity registered on the Blockchain. These certificates are safe, legible, and transferable from any smart device. Any brand can turn to Luxochain and certify the sustainability, traceability, and authenticity of its products. As a result, both users and brands receive a number of benefits. Users can check whether the expensive item for sale is genuine, while luxury brands grow their transparency, loyalty, and awareness.
The blockchain makes it possible to carry out plausibility checks. For example, one can check whether the company actually has a plant in a specific location and if the product could plausibly be at that specified location (when, for instance, each transport step has been saved). The appearance of the same product at the same time on opposite ends of the Earth would be an indication of a counterfeit.
What are the distinctive features of the Luxochain system? This project is characterized by the following:
- Provision of blockchain-based authentication certificates for luxury goods;
- The simplicity of genuinity verification using a mobile device;
- Assistance with the identification of lost and stolen luxury pieces;
- Self-financed project development;
- Issuance of Luxo Utility Token for authentication;
- No third-party involvement;
- Use of blockchain next to other technologies (near field communication, unique holograms, radio frequency identification, fingerprint product authentication, etc.);
- Adding a value of uniqueness to all precious items;
- Availability of Apps, the Mobile Wallet, and the Web Platform.
Luxochain is a Swiss company headquartered in Lugano. The company launched its project at the end of 2017 and tested it with luxury brands in autumn 2018. In May 2019 they launched Luxo Utility Token and started the business development process for different luxury industries including wine and spirits, fashion, jewelry, arts, and luxury cars.
All these achievements were made thanks to 4 major members of the team who are also co-founders of the project. These are Natale Consonni, Davide Baldi, Roberto Gorini, and Alfredo Malgrati. These entrepreneurs of Italian origin with the strongest professional backgrounds own multinational companies. In Luxochain they created a friendly team of professionals who contributed to the development of this system and taken it to the next level. Now the company can boast a partnership with the Virgo platform and many other leading companies.
How does it work?
Luxochain services sound very attractive, but how can this company check and certify the authenticity of the item? According to the official website, all authentic luxury products from the supply chain will be equipped with an invisible and encrypted serial number. This product ID is associated with a token that is uniquely identifiable and which is recorded by Luxochain on the blockchain. Once this information is saved, it cannot be changed externally.
How blockchain is leveraged in Luxochain
Users can verify the genuinity of the product anytime being equipped with a traditional smartphone. The company has created a system running on both iOS and Android devices to provide users with constant access to the blockchain and let them see the information about a product.
When a person makes a purchase of this luxury item, he or she receives the certificate of digital property that can be compared with a passport. The unique certificate provides information such as brand, model, origin, history, and handover along the entire supply chain. Furthermore, it can be used to transfer ownership rights from previous owners to new ones. If this item is once lost or stolen, it can be blocked and will facilitate the recovery of the object and return it to its rightful owner.
The company offers services to both investors and luxury brands. People who plan to buy expensive goods can check their genuinity by downloading the app or accessing the web platform. They should scan the product NFC tag or unique hologram with Luxochain wallet to verify its authenticity.
When it comes to brands, they can benefit from the following services when they insert NFC tag into the product:
- Register a product token tied to it on the blockchain.
- Transmit token from the sales chain to the customer Luxochain wallet.
- Have a boost in trust in their products and fight fake counterfeit products.
The LUXO token
LUXO token can be used to have access to the entire Luxochain environment. It is the only way to access Luxochain technology (A B2B service can be purchased using fiat as well). Producers can implement certificates of authenticity using blockchain technology without writing code. With LUXO tokens, they can buy technology to apply Block-ID protection for a limited number of products, using NFC, RFID, or FPA technology. The number of units protected by a single token depends on the technology selected as well as its actual cost and may vary over time. Luxochain will implement all features of the new technology to make the protection cheaper day by day.
LUXO token was initially deployed as an ERC20 standard token on the Ethereum blockchain.
Luxochain has developed a mobile app that is also a secure wallet. There is a smart search inside the wallet and users can scan a QR code to check the item authenticity and details too. It supports adding and managing new items as well as many other features. You can mark any item as stolen and lock it as well as unlock it any time too. The app also allows sending and receiving luxury asset certificates as well as making and receiving payments, fiat money or cryptocurrency.
Luxochain offers a number of advantages for luxury brands that include:
- Ownership guarantee;
- Grey market combat;
- End customers i-couponing;
- Efficiency of the supply chain;
- Marketing opportunities.
However, there are other benefits for both users and brands too. The existence of this blockchain also eliminates the necessity for 3rd parties and simplifies the relationship between brands and buyers.
Security and safety
The main mission of Luxochain is closely connected with user security since it aims at preventing the creation of fakes in the luxury item industries. It is one of the ways to fight counterfeiting since all the information entered can not be changed externally. Furthermore, it facilitates the investigation of crimes connected with expensive things too.
This Luxochain review has given a clear picture of the project, its goals, features, and benefits. This company was established by professionals who invested their own money and created a system that has no alternatives in the world. There are very high chances for this system to have a very promising future and help people get genuine luxurious items without being exposed to cheating or stolen products.