- Solana Blockchain is based on Proof-of-History consensus mechanism.
- Amazon’s Amazon Managed Blockchain allow companies to easily set up and manage their own blockchain networks.
According to a report by the Organization for Economic Cooperation and Development (OECD), counterfeit products pose a major problem to the world and drain $250 billion dollars from the global economy, annually. Detecting counterfeit products requires transparency in the supply chain, which is challenging with conventional supply chains due to poor coordination between intermediaries, lack of standardization, and unsolved disputes.
How Does Blockchain Technology Helps In Detecting Fakes?
Blockchain technology has applications in supply chain management. Blockchain technology is a distributed ledger of records, where cryptocurrency transactions are verified by a network of users. Each block in the chain contains a link to the previous, which ensures transparency, as all transaction records are immutable (cannot be changed once verified and added to the chain) and can be viewed by anyone.
Blockchain technology helps in tracking the journey of goods from producer to customer. For example, an NFT creator can sell their digital asset on any NFT marketplace. The blockchain will record and keep track of the ownership of the asset by recording all transaction addresses in a decentralized network. Blockchain also offers greater security by encrypting data and preventing unauthorized access.
A blockchain is essentially transparent and tamper-proof making it an effective tool for detecting counterfeit products by providing a clear record of the entire supply chain. Smart contracts can automate the verification and validation of a product, and in case a fales product is deteced, it can raise alerts to prevent its distribution.
How Have Companies Leveraged Blockchain Technology?
MediLedger has developed a blockchain-based drug tracking system called Chronicled. This system can monitor the journey of medicines. IBM, a multinational IT company has leveraged blockchain technology to offer secure healthcare solutions designed to authenticate health credentials. Nestle, the food & drink processing company, has used blockchain to track source in its milk supply chain.
To combat the fake luxury items racquet, Louis Vuitton, Tag Heuer, Tiffany & Co, and Christian Dior work on the Aura blockchain, created by luxury brands for self use only. This enables consumers to trace products’ history and prove authenticity. Walmart has partnered with Nestle and IBM to improve food traceability. Companies that deliver packages across the world like FedEx and UPS (United Parcel Service) are also employing blockchain technology in operations.
Despite these significant benefits, there are several challenges and limitations that need to be addressed. One of Blockchain’s main drawbacks is the requirement for massive computational power. However, different consensus mechanisms are being used on an industrial scale like proo-of-stake which could be considered as an alternative for the legacy energy guzzling proof-of-work mechanism. Scalability is another drawback of this technology. The size of the chain may drastically increase as more products are added to the system, which could result in longer processing times and more expensive transactions.
Source: https://www.thecoinrepublic.com/2023/04/02/spotting-fakes-one-of-blockchains-coolest-features/