Lukso, a blockchain startup which was founded by two founders of Ethereum project aims to bring women into the technology frontline and at the same time, they want to reinvent how tech startups raise funds.
Lukso is a distributed computing network and blockchain startup that will run multimedia apps based on design, architecture, music and other artistic fields. Lukso designer Marjorie Hernandez had the concept of a much more female-friendly blockchain while working with EY’s venture centre in Berlin, but she soon discovered that placing it on the current Ethereum network ran into the issue of overloading blockchain.
Ethereum could not accommodate the added volume, she realised, so she wanted to make it a different blockchain like Polkadot or Cosmos, she said during an interview. Her target demographic, though, has never been in doubt.
“This entire space is built for boys, so I thought it was a fantastic way of reaching the other half of the world’s population,” she said. Blockchain is decentralised, ensuring that it operates on thousands of machines scattered across the globe, making it extremely difficult for an individual or organisation to regulate it, thus enabling for high safety standards. However, the design has not followed suit in the gender complexities of the market.
According to Hernandez’s knowledge, about 90 percent of blockchain founders, designers and programmers are people between the ages of 18 and 35. “It doesn’t feel too open to be honest,” she said.
Lukso as a Blockchain Startup doesn’t only want a global opportunity in cryptocurrencies, but also needs to reinvent how the Initial Coin Offering phase functions. Fortunately for Hernandez, she wasn’t going to have to dig hard for support in that area. Her spouse, Fabian Vogelsteller, set up the original Ethereum mechanism in November 2015, which caused ICOs to grow in popularity beginning in 2016—as well as offering scammers, fraudsters and criminals a way to pay off billions of dollars.
Although promising a new way to raise funds to emerging businesses around the world, many ICOs have shown to be scams, or have never created actual goods. The U.S. Securities and Exchange Commission has closed down or penalised dozens of start-ups that issue tokens without registering them as securities. Hernandez and Vogelsteller are seeking to improve it.
The principle is called a reversible ICO, or a RICO. The ICO model takes capital from buyers all at once, offering a product to be released in the future. But at the other hand, the RICO will also have an involvement window of about eight months, during which the investor’s cash will be converted into Lukso tokens at frequent intervals. If stakeholders don’t like the way the project grows in the fourth month, they will refund the balance of their investment and be able to sell their tokens to somebody else, said Vogelsteller, who is also the founder of blockchain startup Lukso.
“Fortunately, you get people in the RICO who are genuinely interested with the process and they’re not locked in,” he said during an interview. “It increases the pressure on the project because it needs to be delivered.”
The Lukso token is named LYX and is scheduled to go on sale in the RICO in mid-May, with the blockchain to become operational in the fall, Hernandez said. She said that the RICO process gives stockholders more security, and recalled the Miroskii project that used Ryan Gosling as one of its founders to deceive investors.
“It stops this kind of conduct,” she said. “If I don’t do my duty, investors will get out of here.”
Once you build a shortage around it, you create a culture
Two fashion areas may be ideal for the blockchain of Lukso. The first is luxury pieces like Louis Vuitton’s handbags. Fraud is widespread in designer goods, but the actual Louis Vuitton bag can have a chip embedded in it that is certified on the Lukso blockchain. The chip would create a digital bag authentication registry which could be used to monitor ownership if the bag was sold. No personal data is gathered from the purchasers, Hernandez said, because they wish to be identified as someone who can afford a $2,000 purse, Hernandez said.
“For luxury brands, a lot of customers like them know who they really are, they’re a somewhat different customer,” said Hernandez, pointing to brands like Louis Vuitton.
The second is digital design, or the chance to display unique things in augmented reality. A blockchain is needed here to verify that the designer track suit you wear on a digital rave is Burberry and not the so-called skins that anyone on the internet can access.
“Once you build a shortage around it, you create a culture,” said Vogelsteller. “This is the meaning, the scarcity, the evidence of belonging that is relevant.”
In an era where digital meetings have become more frequent as a result of the coronavirus pandemic, looking decent in VR is a fantastic chance, Hernandez said.
“This is the time for coronavirus virtual fashion,” she said.