Table of Contents
Whenever the topic of luxury watches comes up, words like precision, timeless design, and craftsmanship are an automatic. In today’s world, that narrative is being augmented with a digital layer and blockchain technology is one of the most exhilarating additions being made to the horology industry. It started with the technological revolution in finance and art and now it has extended to luxury watchmaking.
As we progress into this new era of technology, Evolution watches pledge to keep telling their customers the story behind each wristwatch. With the addition of blockchain, verifying the history and ownership of the watch will become more effortless than ever.
Understanding the impact of blockchain technology on watches is vital for all sprawling watchers, collectors, brands, and enthusiasts.
The Main Barrier: Counterfeits and Uncertain Ownership History
Tracking counterfeit luxury watches has always been extremely challenging. Counterfeit ownership has always posed a problem too. The industry is always in pursuit of losing track watches. Keeping track of all replicas is an uphill battle to begin with.
The challenge was daunting for brands too. Rolex, Audemars Piguet, and Patek Philippe spent decades combating counterfeit models. Time and again, skilled collectors found it difficult to spot genuine replicas. To make matters worse, some counterfeit watches are artificially crafted in such a way that they possess the ability to deceive seasoned experts at first glance.
In addition, it can be difficult to keep track of a watch’s history. Watches often change ownership. They may be bought, sold, auctioned, or handed down from generation to generation. Verification is difficult without clear documents because customer’s buy watches without brand authentication check. This has directly lead to a lack of confidence within the secondary market. Resulting in buyers becoming more cautious, and hence allowing the entry of stolen or fake watches being sold.
At Evolution Watches, we know that trust is essential. And ot is precisely the area where blockchain technology assists.
How Blockchain Technology Can Help
Blockchain helps by providing a secure uneditable vault, containing the crucial data of the entire lifecycle of a watch. It acts as a digital ledger that keeps important information regarding the watch that can be verified for authenticity.
These are the ways in which blockchain is being used to protect collectors and brands:
Digital Watch Passports
Luxury watches can be registered on blockchain platforms which creates permanent digital passports containing vital information as:
- Brand, model, and serial number
- Date of manufacture
- Ownership history
- Service and repair records
- verification of authenticity
Information that is deemed essential can never be altered or hacked, hence creating a unbreakable chain of information that follows the watch forever.
NFT Ownership Certificates
Several luxury watch brands are now testing the waters with NFTs (non-fungible tokens) as digital certificates of ownership. Therefore, these NFTs now serve as an undeniable testament of ownership for the timepiece.
Upon reselling, the NFT is issued to the new purchaser and ensures a clear and easily traceable transfer of ownership. This helps prevent fraud and adds significant trust to the resale process.
Smart Contracts for Resale and Warranty
Renewal of certain conditions allows processes to be automated using smart contracts, known as self-executing agreements. For watches, smart contracts can be used for:
- Verification of warranty and tracking of service.
- Private sales of watches.
- Payments of royalties for resale to brand owners.
This technology offers both buyers and sellers the needed confidence that their transactions are secure and trustable.
Which Watch Brands Are Already Using Blockchain?
Some of the most established brands in the luxury watch industry are now incorporating blockchain technology.
- Breitling issues blockchain-backed digital certificates for all new watches.
- Vacheron Constantin issues blockchain authentication for vintage models in the Les Collectionneurs line.
- Audemars Piguet and Patek Philippe are looking into blockchain technology to enhance security for resale watches.
- The LVMH Group (which comprises Tag Heuer, Hublot and Zenith) is a member of the Aura Blockchain Consortium whose purpose is to provide luxury goods digital verification and authentication.
Even smaller independent watch brands and tech-forward startups are using blockchain to foster transparency and trust with customers.
Evolution Watches and Blockchain: Our Vision for the Future
While Evolution Watches has not fully adopted blockchain into our products, we are looking ahead. We firmly think that blockchain technology can help transform the watch industry for the better. That is why we are currently looking into ways to:
- Issue blockchain-certified guarantees of authenticity for all Evolution Watches
- Create records of ownership through NFTs to facilitate secure secondary transactions
- Advertise transparent ethical sourcing and ethical workmanship expressions
- Manage service history, repairs, and warranties as timed digital records on a blockchain ledger
With changing technology, our methods will also adapt. We will always strive to combine the art of traditional watchmaking and innovative technologies, so our clientswill not only enjoy wearing our watches, but also possess them with full trust that their timepieces are genuine timepieces.
Has Blockchain Technology Got Any Future In The Watch Industry?
Everything suggests a confident yes!
As described above, blockchain technology is meant to improve luxury watch collections elevated security. It is expected that in the coming years, we will see:
- Universal blockchain registries for all luxury watches
- NFTs issued with every new timepiece
- Blockchains integrated with smartwatches and digital wallets
This is great news for watch enthusiasts as this means added convenience when purchasing, selling, or bequeathing a watch.
Conclusion: How Blockchain Technology Will Affect the Collecting of Watches
It is an understatement to say that watch industry would have been taken aback by the introduction of blockchain technology a decade ago. However, now it is providing solutions to some of the most critical issues in the industry such as counterfeiting, stolen luxury goods, and ambiguous ownership history while simultaneously enhancing the experience for collectors with added security.
Here at Evolution Watches, we look forward to what the future holds for blockchain in the world of horology. While we will continue providing high standards of timeless aesthetics and precise craftsmanship, we will always strive for groundbreaking innovations.
Additionally, the horizon of watch collecting goes beyond just owning a premium timepiece – it concerns verifiably owning a slice of history. This is exactly where blockchain technology can step in to make that future a reality.
