Blockchain Technology to Solve the Luxury Goods Market’s Issues
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The luxury goods market involves some security concerns for buyers and sellers, and blockchain technology might be the right solution to solve it.
Towards the end of the previous week, Forbes described the barriers that sellers and buyers face in the luxury goods market, such as designer handbags, vintage wines and spirits, and luxury cars. Crypto and blockchain specialist Andrew Rossow points out this difficulty:
“Absent paying a visit to an appraiser or utilizing an authentication system of sorts, there’s no way to be completely confident in the valuation. That’s where the implementation of blockchain technology comes into effect, which can make a huge dent in this industry.”
Rossow claims that blockchain tech can solve a specific number of problems while trading luxury goods and one example is the possibility to track counterfeit products via a decentralized network.
The blockchain and crypto enthusiast offered several arguments to support his vision on blockchain and the luxury goods ecosystem.
“Currently, there are two different valuation systems being utilized simultaneously—the value a merchant assigns to an item and the value a consumer assigns to an item. Unfortunately, these systems provide a subjective measure of value, absent another mechanism to help confirm their price.”
Rossow added that:
“The Blockchain can provide such a system that can be utilized by both merchants and consumers to help validate and authenticate these luxury goods.”
In Rossow’s opinion, blockchain’s another advantage is its characteristic to directly control the counterfeit status of a luxury product. He believes that such items are the main causes of market destabilization.
“For the average consumer, it becomes very difficult to deduce the authenticity of an item. Why? Loyalty. We want to trust the merchants we purchase our goods from. Potential buyers have to put their trust in merchants of sometimes dubious credibility to determine the authenticity of the goods they want to purchase.”
Author: Adriana Midrigan
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