Fighting counterfeiting
Blockchain technology can be extremely effective in detecting counterfeit products. This problem most often affects manufacturers of luxury goods, such as fashion designers. The consumer is also not always sure of the authenticity of the product. Product authentication using blockchain protects both the brand and the customer. This solution was used by LVMH (French Louis Vuitton), Microsoft and Consensys to create the Aurora platform, which helps the luxury industry monitor and track products.
The LVMH group uses blockchain technology in nearly 60 of its brands and plans to expand blockchain functionality to protect intellectual property and prevent advertising fraud. Many other luxury brands have followed suit, providing their products with proof of authenticity, allowing them to be quickly identified. In this way, the sales industry can promote and verify ethical production while proving its sustainability.
Blockchain authentication is also being used in the gemstone industry. It was introduced by Tracr, a platform designed for the diamond industry. Using blockchain, the platform allows the authenticity of natural diamonds to be determined by assigning them individual numbers. A registered diamond with this digital number can be identified by verifying its provenance and related transactions.