Use Blockchain in Retail and Luxury Sectors
In comparison to most other fields of work, the luxury segment has seen a steady growth and has fully recovered from covid’s crisis. Many new technologies are emerging, such as the blockchain. Visit our website and learn more about Gaming industry and NFTs.
Why blockchain? And how could blockchain be implemented in the retail market, more specifically in luxury retail
The term Blockchain first appeared in late 1990s. Bitcoin has been the most prominent blockchain. Satoshi Nakamoto is the person who created this in 2009. You can then exchange Bitcoins in a safe, accessible and decentralized manner. Bitcoin fulfills 3 of the main purposes of currency: store of values, unit for accounting and medium of trade. There will only be 21,000,000 Bitcoin created, so it can encourage investors to buy it.
By transmitting information as blocks connected to one another, anyone can verify information and never be able change it. Each information can be shared by anyone and is then validated. This system rewards them in bitcoins for the amount of computing capacity that they have brought.
This is because all of the transactions on the blockchain are validated by the users, the part that is decentralized. So, no one will be able to falsify or defraud transactions. This report is available to everyone.
Today, when we talk about blockchain technology we tend to think of financial transactions and cryptocurrencies. The blockchain technology has the potential to be applied to other fields such as health and democracy. All of these fields would benefit from this technology.
According to the introduction, Blockchain allows for information exchange, storage, and distribution. Knowing this we can imagine the possibilities of using this technology, say, in the luxury market, where authentic is more important than anything else.
Why is a luxury product valuable? Its materials, its past, its name, but above all its rarity. Louis Vuitton’s and other luxury labels destroy goods that are not sold to preserve prices, because the rare items have value. Understanding this can help brands reduce their profits by decreasing sales. The stock increase or the loss of exclusivity. The feeling of exclusivity is lost if every person has the same handbag. Falsification is the biggest threat in the luxury industry. Nearly the same handbag can be purchased for up to ten-fold less. A lot of people will use this illegal alternative even though they are also looking for the prestige associated with these brands. To ensure your handbag, watch or shoe is authentic, you can use blockchain.
Create a blockchain private for the brand and we can immediately tell whether a product came from the factory of the brand or was a copy. This is because it would have its code associated directly with the blockchain.