LUXCHAIN is a verification solution for personal luxury goods (such as handbags). We
authenticate goods and record product information so that anyone can view the proof of
authenticity. Our advanced verification standards provide transparency - boosting trust
between buyers and sellers.
In a market flooded with counterfeits, we believe that everyone should have better access to
proof of product authenticity.
We provide advanced verification via Digital Asset, Digital ID and Proof of Verification.
Digital Assets represent physical goods as a digital store of value. They contained detailed
product information and history that proves a product’s authenticity. Digital Assets can be used
to view products on demand with high transparency. Sellers can prove that their item is
authentic to buyers. Buyers have the power to make the best decisions with the right information
at the right time.
Digital Assets are created, updated, and confirmed by verifiers (luxury authentication experts).
Each Digital Asset is unique, and cannot be forged. Each Digital Asset is linked with Digital
A Digital ID is a unique identifier that represent a user identity on LUXCHAIN. It is like a
passport except it does not contain any personally identifiable information.
Digital IDs are linked to a corresponding Digital Asset whenever a product’s information or
history changes. Digital IDs help prevent fraud and increase community trust. For example, each
verifier records his or her Digital ID on the product verified. If an issue ever arises, the
responsible verifier can be quickly identified.
Proof of Verification (PoV) is a mechanism for confirming authentication history. Multiple
verifiers can cross-check each other’s authentication for the same product. Each time, a new
verifier confirms the past verifier’s work by confirming recorded product information. If the
past verifier were to ever make a mistake in determining the authenticity, the new verifier can
challenge the past verifier for correction.
PoV is especially useful for potential buyers who want to double check a product’s authenticity.
For example, a buyer would feel much more confident making a $5000 purchase for a handbag if it
had at least two different verifiers confirm the authenticity.
Our verifiers are qualified luxury authentication experts. We source our verifiers from
established organizations with a network of reputable experts for personal luxury goods. All
verifiers complete training and hold a valid certificate.
LXR is the “Luxury Exchange Reward” token used for payments, rewards and staking on the LUXCHAIN
ecosystem. The total supply of LXR is limited at 800 million tokens. LXR is designed to be used
for microtransactions that can represent precise units of value without resorting to decimal
places (hence the large supply). LXR is a secure peer to peer payment solution for fast
Verifiers are paid in LXR for verification services and the creation of a Digital Asset.
All users (Sellers, Buyers, Verifiers) can earn rewards that are exchanged for LXR tokens.
Rewards vary in amount depending on the type.
Sellers and Buyers can earn rewards by creating helpful reviews for verifiers. If requested,
other users can then choose the verifier they like.
Sellers can also earn rewards for conducting verification on personal luxury products. Sellers
who bring many authentic items have higher trust. LUXCHAIN is committed to creating a community
of trusted users in alignment with our vision. The more products are authenticated through
LUXCHAIN, the higher the chance that the seller can earn LXR.
Verifiers can earn rewards by earning high reputation. Reputation is determined by the number of
products verified, the satisfactory track record of past verifications, and user reviews.
As another example, all users can complete bounties for LXR rewards. Bounties can be tasks such
as reporting technical bugs on the LUXCHAIN platform.
LUXCHAIN’s Decentralized Verification Solution is broken down into two types of verification:
Basic Verification (BV) and Advanced Verification (AV). BV is conducted for the first time on
all products. AV is conducted anytime after BV has successfully been completed.
Sellers (Product Owners) can choose either online or offlline verification (a
combination of both is also accepted).
1. Sellers pay fees upfront with LXR to the verifier.
2. Verifiers gather product information. For online only verification, the seller will
upload all requested information, documents, and photos/videos pertaining to the
product. If done offline, verifiers will collect the information. An online interface
makes the data upload intuitive for users and verifiers.
3. Verifiers authenticate the product after analysis of the gathered information.
- a. If the product is detemined non-authentic, BV terminates at this step. The
product is returned.
- 4. If authentication is successful, the product’s unique Digital Asset is created.
- 5. Verifiers attach a tamperproof security tag on the product.
6. The product is fully authenticated, now ready to be viewed by potential buyers.
Sellers have a Digital Asset for their product that they can view anywhere, anytime.
1. The verifier first obtains the product in person. AV requires physical examination as
part of Proof of Verification (PoV).
2. The verifier first confirms the authentication history. The recorded information on
the product’s existing Digital Asset is double checked by the new verifier. In addition
to careful examination, the new verifier may use advanced hardware tools to detect
counterfeits. The tool scans the product on a microscopic scale for detailed analysis.
3. The new verifier authenticates the product using his or her unique Digital ID. The
new verifier will also update product information.
a. If the new verifier does not agree with the past authentication, arbitration
4. The product’s updated verification status is now viewable by anyone. Potential buyers
are guaranteed authenticity that is backed by multiple verifiers.
Arbitration is a system that solves disputes or claims that a user requests whenever there is a
problem caused within LUXCHAIN. Disputes can be examples such as an authentication conflict
during Advanced Verification. Another case is a seller who claims their product to be authentic
but a verifier determined it to be a counterfeit.
Arbiters (verifiers with additional criteria) resolve disputes during arbitration. By using
Digital Assets as a basic form of evidence, Arbiters objectively analyze claims for the final
Most traditional verification services are not transparent with authentication methods. They
also do not provide an easy way for sellers and buyers to check product information on demand.
This is troublesome especially when one needs accurate information to spot counterfeits.
LUXCHAIN solves this problem by providing a transparent layer of product information for all
parties: verifiers, sellers, and buyers. This is made possible with Digital Assets that contain
proof of authenticity. If the recorded data is ever found to be inaccurate, the responsible
verifier can be quickly identified for liability.
As a result, sellers have more control over their products while buyers have increased trust in
the product’s they wish to buy. Greater confidence, trust, and transparency are the key factors
that LUXCHAIN accelerates for personal luxury goods.
The Global Price Index (GPI) is the world’s first global luxury price index built on artificial
intelligence. It provides a comprehensive pricing tool that informs sellers the best market
value for their products. For buyers, the GPI suggests the best prices so that they are less
likely get ripped off. GPI gives power back to the consumers in making the best purchase
Currently, the GPI has analyzed over 350,000 luxury products worldwide.
Staking is like a security deposit made by verifiers. Verifiers “stake” or put down a security
deposit in LXR tokens when they begin verification service.
Staking ensures that bad actors are discouraged from intentionally cheating product owners.
Staking also covers for any potential damages that may occur due to a verifier's fault. It
protects product owners and interested buyers by keeping out verifiers with bad intentions.
Verifiers stake a variable rate depending on the product category and stake percentage. The
stake percentage for each product category is not yet disclosed.
The fee is calculated based on the product category and may change based on market supply and
demand. Details are not currently disclosed.
The fee is paid directly to the verifier for his or her service. Fees are paid by the owner or
user requesting verification so that their product can obtain a valid Digital Asset. Having a
Digital Asset is like having a digital certificate that proves the product’s authenticity, thus
increasing the product value.
The verifier sends a fraction of the fee to the LUXCHAIN ecosystem which helps maintain the
security of Digital Assets. The LUXCHAIN ecosystem also helps support core services like reward
payments and network transaction fees of LUXCHAIN’s underlying protocol.
LXR can be traded for fiat currency once it is listed on an exchange. They can be traded just
like other cryptocurrencies, such as a LXR/BTC pair. For example, the BTC gained can then be
traded for fiat currency.
In an effort to facilitate a healthier token economy, we will initially limit the number of LXR
tokens available to the public.
Individuals who hoard large amounts of LXR will have a harder time manipulating the price. This
is because the amount of tokens they can possibly own is 40% of the total supply, instead of a
much larger percentage.
Our goal is to create a healthy ecosystem of fair pricing that reflects the real supply and
demand of LXR.