Rethink Fine Jewellery with HyperBC — A Cut Above
Blockchain technology is disrupting the $1 trillion dollar global fine jewellery market. With key players like Hublot, Tiffany and Gucci entering the mix, it’s becoming clear that crypto is a convenient and popular means of payment. As the technology and union of markets matures, some early actors in the luxury space are beginning to mint NFTs & tokenize physical goods. In this article, the “why” isn’t discussed so much as the “what if”. What follows is a segment of HyperBC’s industrial analysis of the Fine Jewellery industry, and applications of their technology.
An immutable entry on the blockchain ledger can be used for any document, if tokenized. It serves as proof that a certain set of data was true at a certain time, verified by the sender, receiver, and everyone on the block. An immutable entry like this is invaluable for chain of custody, inspections, and appraisals in the fine jewellery space.
With increasing consumer demand for well documented materials, for fear of fakes or irresponsible business practises — it makes sense to have a decentralized log of the history and condition of every unit. This removes the risk of tampering, mismanagement or erasure by the central (or a third) party. A public ledger ensures the data is untampered with, from its inception, forever.
In May, Gucci blazed the trail for crypto payments in the luxury space with a pilot scheme in the USA. In July, Industry giant Tiffany & Co released a range of NFTs as tangible jewellery. In the same month, top watchmaker Hublot began accepting crypto payments with an exclusive new watch, in partnership with Ledger. This is not a coincidence.
Luxury goods and NFTs are a match made in heaven. Tokenized goods can, in theory, serve as proof of ownership of expensive goods. For example in the UK, courts recently accepted an NFT as a legal document — setting a precedent that may see the role of NFTs in the litigation expand. They can stand alone as a digital artwork. Their digital essence imparting a different street value than their physical counterpart — and crucially, they have no intrinsic value, only subjective… just like all art.
Exchange of currencies at real time values, very fast, very cheap — is a proposition that by far exceeds banks’. For large sums transacted overseas, bank transfers take 24 hours (on the low end) to clear. Consumers in the fine jewellery industry are beginning to see the appeal of blockchain transactions and brands are responding to that. Moving money faster, more securely, and more cheaply always caters to a consumer’s need for convenience.