Lukso Hopes To Leverage Blockchain For Fashion Online And Offline
Perhaps no industry is as plagued with counterfeit merchandise as the fashion industry. Walk down the street in any major city and knock-offs of Kate Spade bags and haute couture are arrayed, offering big discounts for the undiscerning. It costs the fashion and accessories industries many millions of dollars each year while denting consumer confidence.
Hoping to solve the problem is Lukso, a new decentralized network for the fashion industry. The Lukso network will focus on secure, counterfeit-free, transparent brand engagement through blockchain technology. Beyond supply chain, Lukso offers a twist – digital versions of the high fashion goods designed for the coming revolution in virtual reality worlds.
“The blockchain allows uniqueness and ownership to be made visible and executable on a decentralized basis,” says CEO Maarjoie Hernandez. “As creators of culture, it is the next logical step for the fashion and design industry to enable their brands and creations to live in the digital world,”
Since exclusivity has always been a feature of the fashion industry, the uniqueness of objects can now be owned and transferred to the virtual world through the Lukso blockchain. Customization, authenticity, and tokenization will shape the landscape for brands, with the Lyx coin the unit of commerce.
Fabian Vogelsteller, the Lukso CTO and founder, answered some Block Tribune questions.
BLOCK TRIBUNE: Explain how this will work for a consumer and for a vendor.
FABIAN VOGELSTELLER: Lukso is the tech layer for many blockchain based systems, so the exact use case will depend on the service or product build on top. We will build some of the use cases as showcases and standards definitions in-house. One use case will allow brands to authenticate their products, and customers to verify the authenticity.
The process works as follows. A secure NFC chip is placed in the item, and a certificate card is associated with it. Nothing changes for the retailer, as he simply sells the product along with the certificate. The customer then is able to claim the digital ownership by scanning the handbags chip and certificate with his phone. This process is fully automatic based on smart contracts and can only be done once by the person having both, the item and the sealed certificates QR code.
After that, the customer has a direct communication channel with the Brand and will be able to receive all kinds of benefits, from event tickets, to brand tokens, or discounts, etc. While being able to proof the items authenticity, and being able to keep it as an investment. Any person who would buy this item on the second market would be able to verify its authenticity as well as receive the digital ownership, and with it all the benefits that come along with it, as well as a direct communication channel to the brand itself.
BLOCK TRIBUNE: Why is this needed?
FABIAN VOGELSTELLER: Digital twins of items are only one basic building block in the new digital fashion era. Tokens are another. Those building blocks can be build by anyone, we just need to make sure that we all agree on coming standards to make them interoperable, as I has done with ERC-20 and ERC-725. With this, unlimited possibilities arise of a connected digital infrastructure for the fashion and lifestyle industry, where everybody can build on top. Thinkable are things like sharing economy (access instead of ownership), design-IP rights management, market places, gamification models, designer ICOs and much more.
BLOCK TRIBUNE: What is your timeline for creating it?
FABIAN VOGELSTELLER: The technology is ready and we are working with brands and startups to align the timing for when to go live with the LUKSO Blockchain. The current picture is in about a year.
BLOCK TRIBUNE: What are your token sale details?
FABIAN VOGELSTELLER: The ICO, which we are hopefully able to do in form of a RICO, a concept Iproposed at Devcon4 and a little over a year ago at EthCC, will sell 20% of the LUKSO’s Blockchain cryptocurrency called LYX. Its currently planned in spring 2019 and concrete details will follow as we get closer to that event.
BLOCK TRIBUNE: How will your company make money?
FABIAN VOGELSTELLER: The Lukso Agency GmbH is a full service agency for all work related to Fashion Blockchain using the Lukso network. It was also commissioned to build the Lukso Blockchain initially and provide updates that it will propose to the community. The second entity that is commissioning the Lukso blockchain itself is funded through the RICO and sale of the initial supply of LYX, and will keep 5% of the supply for future development.
BLOCK TRIBUNE: Will virtual items be sold as an add-on to real world goods? Or will they be separated into their own categories?
FABIAN VOGELSTELLER: That’s all up to the Brands and start-ups who have physical and virtual items. LUKSO can support all of those use cases, and in fact we believe that unique virtual items will create a whole new category for the fashion industry.
BLOCK TRIBUNE: Is the need for this already apparent in the nascent VR world?
FABIAN VOGELSTELLER: I am very interested in VR and have spend countless hours in social VR places and VR experiences. I see this future coming very fast, and the blockchain is the most necessary building block to make items, identities and money be transferable and usable in such environments.Everybody needs an avatar, and some will be more scarce than others, which will create a whole new economy around collectibles, where brands surely want to participate in. Maybe your next luxury bag comes with an avatar and some tokens?