America

How Blockchain Can Help Track Counterfeit Goods – crypto.news

While the counterfeit business is thriving, the real business has been hit hard. According to one report, counterfeit goods cost the global economy an estimated $323 billion in 2018. As Forbes puts it, counterfeiting is the world’s largest illegal industry. By 2022, the counterfeiting business will be worth $2.8 trillion and 5.4 million jobs will be lost. The world is facing a tremendous supply crisis, causing shipment delays and counterfeiters may use this opportunity to capture a larger market.

Is the main purpose a substantive business?

All major businesses suffer heavily from counterfeit goods, including cosmetics, pharmaceuticals, edible oils and clothing. Gartner estimates that over 60% of his “extra virgin” olive oil is fake. Counterfeit goods have a great impact on the image of a company’s brand.

Counterfeit goods cost the world about $90 billion each year. Counterfeiters make millions of dollars selling low-quality copies, and companies must find viable remedies beyond established technology. Counterfeiters are gaining momentum as a result of supply chain disruptions and manufacturing shortages.

The pandemic has also disrupted global supply chains, allowing cartels to flood markets with counterfeit goods to meet demand. are also aware of this.

To combat counterfeiting, we need to introduce new technologies such as blockchain. Several luxury goods companies, notably his LVMH, implemented blockchain technology after realizing it was an efficient technology to combat counterfeit goods.

Sector most affected

By providing consumers with more affordable options, counterfeit goods stifle innovation across industries. This has a negative impact on brand image and is very expensive for businesses.

  1. Shoes: As of 2016, shoes accounted for 22% of the total value of counterfeit goods seized by customs. Mass market companies like Adidas, Nike, Luxury brands such as Reebok, Michael Kors, Gucci and Louis Vuitton were targeted by counterfeiters. Billions of dollars are lost due to counterfeit goods sold under the brands of these companies.
  2. Fashion and Clothing: Data show that the clothing industry is the second most affected by counterfeit goods.according to ghost Data show that 20% of fashion items sold on social media channels are counterfeit. Counterfeiters advertise counterfeit products on Instagram and other popular platforms under the guise of branded products.The fashion department lost more $50 billion Due to counterfeit sales in 2020. This figure includes reproductions of clothing, watches, perfumes, and other items.
  3. Pharmaceuticals: The impact of counterfeit goods on the pharmaceutical business is horrifying, to say the least. The pharmaceutical industry lost him more than €10.2 billion in 2020 due to the sale of counterfeit medicines. Antibiotics, lifestyle remedies, analgesics, antimalarials, diabetes treatments, and central nervous system medicines are often correctly manufactured counterfeit medicines and pose a serious public health hazard.

Other industries heavily affected by counterfeit goods include toys, jewelry, electronics and leather goods.

Some organizations ignore the production of counterfeit goods containing logos, arguing that the costs of tracking counterfeiters outweigh the losses. Additionally, social media networks ignore messages promoting counterfeit goods as they increase interaction.

How companies find and stop counterfeit goods

companies are forgery industry. Traditional tactics fail to stop counterfeiters, and addressing the problem requires looking beyond them. Below are four tools businesses can use to detect and prevent counterfeit goods.

  1. Human Verification: Companies can use regulators to perform on-site physical inspection, sampling, and testing, and provide verification certificates. These regulators can also audit seller review ratings to prevent rating falsification in the case of digital operations.
  2. AI-assisted verification: Customized artificial intelligence-powered systems can evaluate and recognize the features, components, and ingredients of authentic products according to traditional approaches for determining authenticity.
  3. Digital Authentication: This is a good quality control method. We apply techniques such as DNA analysis and spectrophotography to capture and record the product as a digital object. Blockchain technology is then used to verify the object’s legitimacy by tracking it from start to finish.
  4. Validation in place: Handling points are important to ensure that goods are shipped from the right fulfillment center and sold at the right retail outlets. A QR, RFID or NFC chip can be used to complete the scan and record the geolocation of the scanner for verification at the handling point. Both stores and customers can scan all parts of the supply chain.

These issues help tackle the problem, but they have certain flaws to consider. For large companies producing thousands of products every day, human verification methods are not sufficient. One option is to combine all three methods, but the costs skyrocket. A low-cost solution is needed to eradicate counterfeiting across industries.

Blockchain as a potential solution

Improved traceability and end-to-end tracking It can greatly help organizations combat counterfeit goods, and blockchain is helping companies across industries track shipments in real time.

Walmart is using blockchain to make its food supply network more open. Ford uses it to track its cobalt suppliers. FedEx uses blockchain to secure its chain of custody. Businesses are increasingly using blockchain.

By identifying proof of product origin or provenance, blockchain helps combat counterfeiting. By integrating this with blockchain’s end-to-end tracking system, businesses can ensure quality checks at every level, from manufacturing to delivery.

Smart tags are the key to blockchain-powered solutions to prevent counterfeiting. Businesses use smart tags to achieve blockchain provenance identification. They are attached to items to identify their manufacturing location, track their current location, and assign specific information at various stages.

  1. RFID identification tags: Radio frequency identification tags communicate using radio waves. A reader is required to receive the signal from the RFID tag.
  2. QR Codes: Businesses typically use them to track payments and deliveries. Unlike RFID tags, QR codes can be read by smartphones and tablets, making it easier for companies to check shipment status.
  3. NFC Chip: NFC is an acronym for Near Field Communication Chip. This component is made out of silicon and attached to an antenna to enable short-range wireless communication between two devices. Combining NFC chips with blockchain will improve the trust and transparency of supply chains.

When a smart tag is attached to a product, new per-transaction data is transferred to the blockchain with matching time stamps, creating a data trust layer by making the data immutable. This allows interested parties to track shipments and observe their history from the beginning.

We are seeing the emergence of blockchain-powered solutions that provide businesses with specialized tools to combat counterfeiting. They use distributed ledger technology to generate a digital trail across their supply chain.

The platform automates the flow of money and services in the supply chain and eliminates the possibility of fraud. Blockchain-powered anti-counterfeiting technology can be easily integrated with traditional systems. As a result, blockchain is a low-cost option to combat counterfeiting.

Counterfeiters seek to capitalize on and expand their market share as consumer demand increases. The world urgently needs low-cost solutions to combat counterfeiting. With blockchain adoption rates looking promising, entrepreneurs have a chance to use it to improve the global economy. Additionally, blockchain solves the counterfeiting problem without replacing legacy systems. The use of blockchain continues to expand as companies digitize their operations.

https://crypto.news/how-blockchain-can-help-in-tracking-fake-products/ How Blockchain Can Help Track Counterfeit Goods – crypto.news

Back to top button