Figure out the best way to leverage blockchain technology to address luxury industry pain points.
Cryptocurrency is having a bit of an identity crisis lately. Some extoll utopian notions of freeing consumers from banks, while others see a way to make money. It was this unregulated asset speculation that spurred investors to flock to cryptocurrency last years.
Dai stablecoins and the MakerDao infrastructure goes a long way to stabilize the cryptocurrency ecosystem. For more people to adopt crypto and start using it as a medium of exchange, easing price volatility and uncertainty have to happen. Dai’s stability helps users hedge their Ethereum assets and protect their investments from wild swings in the market.
Luxify connects affluent buyers with luxury retailers. Our client has found out that counterfeit goods pose a real risk to the market as for instance – knock-off watches or forged handbags can make their way into the system limiting consumer trust. Ordering online usally means taking a leap of faith. As ecommerce grows globally, the industry needs effective ways to fight fakes. The blockchain authentication system we proposed helps to close the trust gap.
If there is one thing that blockchain technology excels at it’s establishing immutable records among key stakeholders who may not otherwise trust each other or share information. Blockchain in ecommerce will boost trust and attract more consumers. Luxify reached out to Espeo Blockchain with one question: how can blockchain help our business?
Their experience give them a unique view of the market. Through our consulting project, we answered their questions and delivered a solid business plan for a blockchain authentication solution. Our proposal lays out a system to verify brand authenticity, track ownership, and protect the value of items through tokenization.
At the very beginning of the project some of the questions raised were: Which blockchain platform to use? Which type of Ethereum token should Luxify use to represent luxury items
Our proposal for a blockchain marketplace was to use Ethereum to handle transactions on the blockchain authentication system. Ethereum offers a robust network we’ve used for many of our clients. In terms of Ethereum scalability, we proposed using Plasma techniques to maintain asset storage. Platforms such as the Loom Network use similar solutions with sidechains to maintain a safe state of token assets. Luxify tokens themselves will be non-fungible (NFT) ERC-721 tokens which represent item ownership. As mentioned before, RFID tags attached by a team of experts established authenticity and enter the asset onto the blockchain ecommerce registry. Once there, the life and ownership of the item is being registered.
Users also have to keep their tokens in a wallet. We proposed a wallet integrated into a UX-friendly React Native mobile application. This will reduce the time of development considerably. and enable the client to reach go-to-market phase efficiently. Luxify uses blockchain technology to cryptographically store all relevant information to guarantee a data management architecture that offers the highest level of security, traceability, and transparency. Instead of opting for a central server-based data center, Luxify’s decentralized register infrastructure decreases security risks to a minimum, while allowing easy and self-organizing control over the access to the information.
Since 2013, Luxify has been a market for new and used luxury goods. The company plans to meet the ever-growing demand for high-end western brands, especially in Asia.
The company’s mission is to be the first to innovate luxury ownership by establishing an integrated mechanism for authenticity and traceability. However, blockchain is not a solution in itself — only a tool to streamline the business. Customers ready to spend want stronger guarantees. Deep cooperation between the Luxify platform as well as a network of external sellers and experts help establish credibility. ERC-721 tokens do the rest. Our plan for a blockchain marketplace uses these to transfer ownership. Experience with fakes on other online platforms limits the overall market. Tech innovation especially blockchain will help the market expand and build a network of easily recognizeable, reliable second-hand retailers .
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