Luxury Brands On The Blockchain. This article was inspired by a new ‘Blockchain-based’ partnership, where another brand is looking to exploit its immutable power of recording and tracking physical goods. Raketa, a world-renown Russian brand of watches, has become one of the first companies in the world to register its production of physical goods in the Blockchain. Their Blockchain partner/provider is Emercoin, an innovative blockchain founded by Eugene Shumilov.
Manufactured by Petrodvorets Watch Factory, a Russian enterprise with tradition and long heritage, Raketa watches are going to be recorded on Emercoin’s advanced blockchain platform. The initial scope of the partnership is to ‘step-up’ the company’s game in the fight against counterfeiting. Given the popularity of its watches and proximity to China and other Asian countries, Raketa (the brand) is affected by counterfeiting.
Luxury Brands On The Blockchain – Emercoin Blockchain Platform
The deal states that Emercoin will provide the Russain company access to its blockchain platform, packed with a wide range of services such as e-business, immutable and secure transactions, reversible payments, machine to machine protocols, and improved network security.
The adoption of the Blockchain technology in has boomed last year (2017) after a growing number of blockchain platforms have started to commercialise their services as ‘the best solutions in the fight against counterfeiting’. Partnerships like Ripple – Money Gram, VeChain – China’s Tobacco Industry – aimed cracking down on smuggled and counterfeit cigarettes – or Stratis-Earth Twin just to name a few aim highlight how fast the ecosystem is developing. Counterfeiting is a critical problem that affects most industries, not just the market for luxury goods.
Emercoin is a decentralized blockchain platform that provides a wide range of distributed trusted services. Distinctive features of Emercoin are the three-in-one hybrid mining (PoW+PoS+MergedMining), high reliability, and proven robustness. The Emercoin platform runs network security services and counterfeit solution such as EmerDPO, EmerSSL, EmerSSH, and decentralized domain system EmerDNS, just to name the few.
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“The implementation of Blockchain technology in the production and supply chains allows brands to provide customers with the authenticity of each product, thus eliminating forgery at its core. Same, in the case of that the Raketa project, Petrodvorets Watch Factory will capitalize on the bulletproof technology behind Emercoin’s blockchain,” said Stan Polosov, the COO of Emercoin’s Blockchain Engine.
Luxury Brands On The Blockchain – How Does It Work?
For those of you not so familiar with blockchain tech or what it can do, the tech is quite simple; as all luxury goods are serialised with a number applied at the production stage, any brand can record the serial of each product in the blockchain. Once recorded the data cannot be deleted or tampered with.
Moreover, each recorded serial contains extra information such as the date of manufacturing, the craftsman in charge, any official repair history -if any, information about the initial and any subsequent owners and so on. The sky is the limit.
Also, by recording product information in the blockchain, the manufacturers eliminate the need for purchasing any additional raw materials such as papers, paints, and tools for creating and issuing physical certificates such as warranty card that can be anyway counterfeited or even lost.
Brands like Raketa are pioneering technologies called ‘Digital Proof of Ownership’ as the goods are recorded in the blockchain while reducing unnecessary expenses and environmental pollution. From a buyer’s perspective, the goods are checked via special apps designed to communicated with the blockchain and used to verify the authenticity of luxury goods, expensive accessories, art, collection cars and expensive mansions.
Luxury Brands On The Blockchain – Is There A Limit?
It is not just the luxury landscape that can benefit from such innovative technology. Blockchain can be used to confirm ownership rights of all types of properties that rely on fixed numbers and unique serials; VIN number of vehicles, the public registry of land titles, software licenses, serial numbers of personal luxury goods, and all type of goods that rely on certificates of ownership to prove their authenticity.
All recorded and tracked on the blockchain, with the help of an app, straight from your smartphone.
With the same app, during the sale or transfer of assets, the first owner performs a simple operation on the blockchain that transfers their right to ownership to the buyer which is then recorded on the blockchain as the new owner. Hope you enjoyed the article and I’d much appreciate your point of view regarding blockchain tech and the best parts to come in the comments below.