Can You Tell a Fake? How LuxFi is Using Blockchain Tech to Battle Counterfeiting
Telling a real luxury good from a fraudulent one has never been harder; whether it is eye-popping Air Jordans, the latest Nikes from LeBron James, matching gold-plated Rolexes, celebrity-signed Gucci bags or even 15 carat Tiffany diamond necklaces — the black market for replica goods has never been more active.
Every brand around the world, large or small, contributes time and money toward maintaining and protecting their image. The high quality and attention to detail that goes into creating such high-value, high-quality items is something luxury brands are particularly aware of, constantly seeing that their goods are produced in ways which meet the expectations of their customer base.
Starting with the design and conception of a product, moving to the sourcing and procurement of materials, then later to the fabrication, assemblage and testing of each good and finally, the finished product being packaged, signed, sealed and shipped from the factory and on to the retail consumer — this has been the arduous process which luxury brands have had to continually strive to maintain, in order to stay competitive and offer the highest quality goods possible.
It is such attention to detail at every level that sets luxury brands apart and it is this same awareness and focus which will help them stay competitive in the new global e-commerce landscape.
The global battle against fake products
Counterfeiting is now a globally-recognized problem and has been well-documented as a scourge on free-market competition, challenging the legitimacy of luxury goods and brands. It is a certainty that around the world there exists a multitude of factories producing “luxury products” when in fact such factories are malevolent copycats engaged in fraudulent activities of the highest magnitude, fabricating (nearly) identical replicas which are in fact 100% fake.
When whole factories are found to be creating fake luxury goods, companies often must litigate for themselves, dealing with a complicated web of country-specific laws and regulations and sometimes finding no assistance from authorities without engaging in bribery themselves.
It is now harder than ever to tell the difference in a real luxury item from a real one. We all know what authentic Nike sneakers look and feel like, but how easy is it then to tell if they’re real or not when you’re shopping online? The truth is, you would never know until they arrive at your doorstep, but by then it is too late. All consumers rely on good information and a safely guarded marketplace where they can barter and trade. If there exists a lack of consumer trust, then free market capitalism and global trade assuredly suffers, with consumers bearing the brunt of such malfeasance. The reliability and honest manufacture of consumer goods is something that affects all of us, no matter where you are or what you buy — counterfeiting must be eliminated to ensure a global free market may prosper, so that innovation can occur and thus be rewarded.
Blockchain has brought the next evolution of trade and commerce
Interacting with retailers from within web3 marketplaces is now a fully-authenticated (trustless) experience, utilizing smart contracts and non-custodial accounts within permission-less mediums of decentralized exchange, activities unseen before in human history. We are indeed at a crossroads and LuxFi is changing the landscape for luxury brands and retail consumers.
Online sales are crucial to luxury brands success going forward and physical retail storefronts will eventually come to exist in the metaverse, thus allowing consumers to engage with brands and the products they love in truly new ways. How we know a product is real is now manifested by merging blockchain tech with real-world assets, using tracking chips to protect and empower luxury brands and utilizing the non-fungibility and embedded commission structures of NFTs.
We now have immediate, fee-less, unmistakable transfer of ownership of real, tangible goods and a wholly innovative new method of empowering consumers around the world.
LuxFi’s NFT Marketplace has changed the way we interact with luxury brands
We have begun to see the use of NFTs from brands such as the Aura Consortium and from blockchain projects in the luxury industry such as Lukso and Arianee, all using NFTs for authenticity purposes. LuxFi has built a system, an Asset-Backed NFT Marketplace available to all, where all products sold are authenticated by professional verifiers. LuxFi directly tokenizes products from legitimate brands and retail partners.
Once products are authenticated, LuxFi ties the physical product to its NFT counterpart using unique product fingerprint technology or working directly with brands and manufacturers to insert a secure NFC chipset inside each item during production. Each product is tied to an NFT which is verified and accounted for via the ever-present, immutable, globally-distributed blockchain ledger.
We’ve just begun to embrace these nascent blockchain technologies and this is truly the next wave of e-commerce we have long been waiting for as LuxFi’s Asset-Backed NFT Marketplace is now here to bring all these things — authenticated luxury goods listed in an open marketplace backed by real-world assets and secured with traceable, immutable blockchain NFTs — into alignment and into congruence, one product at a time.
About LuxFi
LuxFi is the world’s first asset-backed NFT marketplace for luxury assets, where people can buy, sell and invest in luxury assets using cryptocurrencies and traditional payments. We eliminate counterfeiting while minting an NFT on a multi-chain blockchain network, with a focus on luxury assets that hold value well and have a high resale value. Leveraging our big data intelligence system and unique algorithm for automated data collecting and data processing, the value of each NFT on our platform is backed by real-world data.
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