ModulTrade Partners With Luxochain against counterfeiters
In order to further protect users online transactions, ModulTrade has signed an agreement with Luxochain to unite efforts in the development of blockchain-based trading networks aimed at guaranteeing the authenticity of the products traded online.
Online sale of counterfeit goods, arguably one of the major problems currently plaguing e-commerce, may have its days numbered after that ModulTrade has signed an agreement with Luxochain to unite efforts in the development of blockchain-based digital passport aimed at guaranteeing the exclusivity and non-repeatability of the products traded online on ModulTrade’s platform.
Counterfeiters’ business is brisk, with $ 1.2 Tn in 2017 and $1.8 Tn estimated in 2018, and it is no mystery that e-commerce is one of their favorite distribution channels, with 20% of the products sold on online portals estimated to be fake, according to one survey. In China alone, 40% of the goods sold online are either counterfeit or of poor quality, thus increasing local buyers’ wariness on online offerings and ultimately killing the legitimate online business.
Against this background, Luxochain’s solution will give e-commerce users assurance that the goods they are trading are not counterfeit or tampered with. In addition, Luxochain’s smartphone app will engage the final users of the goods, who will then be able to verify with a few taps on their smartphone that their online purchase (be it a bottle of fine Italian or French wine, or a luxury bag) is authentic.
In order to further protect users online transactions, ModulTrade will integrate Luxochain’s solution into its value ecosystem, thus providing product certification services on its smart-contract platform and on its marketplace, the MT Market, to the benefit of producers, resellers and art galleries for artworks, who will easily be able to demonstrate the authenticity of the goods they are selling.
The availability of a smart-contract trade platform with blockchain-based certification of authenticity available will provide trust between e-commerce users, as well as between end customers and brands, ultimately removing a large hurdle for global trade.