Detecting Fake Products Through A Barcode-Based Blockchain System
Counterfeit products are a rising issue that affects both consumers and genuine businesses. These products, which range from counterfeit electronics and medications to designer handbags and clothing, can be hazardous and generally of poor quality. For example, counterfeit electronics can be dangerous, resulting in electrocution or fires.
Counterfeit drugs, on the other hand, can be inefficient or even hazardous, and they are a serious issue in developing nations. According to Akunyili, drug counterfeiting first surfaced in Nigeria in 1968. In sub-Saharan Africa, as many as 267,000 deaths per year are linked to fake and substandard antimalarial medicines. Over seven tonnes of counterfeit medications and cosmetics were destroyed in Libreville on January 16, 2020, during a joint operation against the illicit selling of counterfeit items by the Gabonese Directorate of Medicines and Pharmacy and the Competition and Consumer Affairs Directorate.
Fake items harm legitimate businesses, who lose money and reputation, as well as consumers who purchase these products unwittingly. Consumers must be aware of this issue and take proper precautions to avoid purchasing counterfeit items.
Fake product issues have increased in recent years, causing additional problems for customers. For this, we can suggest a blockchain-based method for detecting counterfeit products. The suggested system has the following characteristics: flexibility, transparency, security, and privacy. Consumers can scan the QR code with their cellphones to determine the authenticity of the product. This is the primary goal of the suggested system.
By utilizing blockchain technology, consumers no longer need to rely on trusted third parties to reliably determine the source of the acquired commodity. Any application that employs blockchain technology as its foundation ensures that the data is “tamper-resistant.”
Transparency in the supply chain is significant for several reasons:
Quality Control: When the supply chain is transparent, companies may better understand their suppliers and the techniques utilized to generate their products. Businesses can increase quality control because of their ability to detect and rectify any flaws or concerns that arise in the supply chain.
Sustainability: Supply chain transparency is critical for establishing that organizations are functioning ethically and sustainably. By examining the whole supply chain, businesses can identify areas where they can reduce their environmental effect and improve the working conditions of their suppliers.
Customer Trust: As customers start to expect transparency in the products they buy, supply chain transparency can help enhance customer trust in firms. Companies can demonstrate their commitment to sustainability by releasing information about their product’s origins and manufacturing procedures.
Compliance: Supply chain transparency is commonly required by rules and regulations in a range of businesses. Companies may ensure that they are adhering to these standards and staying out of legal issues by building a transparent supply chain.
Blockchain technology can be used to improve supply chain traceability and transparency, assisting in the detection and abolition of counterfeit goods. By documenting every transaction and movement of a product on a decentralized ledger, blockchain creates an immutable and transparent record of a product’s path from producer to end-user.
As an example, consider medicine supply chains. According to the World Health Organisation, one in every ten medical products — such as pharmaceuticals — in developing countries is counterfeit, and the problem is just as prevalent in developed economies.
It will be easier to identify and stop the spread of counterfeit pharmaceuticals if a safe and transparent supply chain for medications is established utilizing blockchain technology.
Cryptographic hashes are employed to protect records, making it difficult for anyone to change the records without being detected.
Here are some processes in a blockchain-based medical supply chain that can be tracked to prevent counterfeit drug circulation:
Manufacturer: The company that makes and packages the pharmaceutical logs the details of that procedure on the blockchain as well.
Distributor: The drug is subsequently conveyed to the distributor, who logs the medicine’s receipt and movement on the blockchain.
The wholesaler takes the drug from the distributor, verifies its authenticity, and records its route on the blockchain.
Pharmacy: Once the medication has been received from the wholesaler, the pharmacy verifies its authenticity and records its journey on the blockchain.
End-user: After purchasing the drug, the end-user can scan the blockchain-based QR code on the packaging to authenticate its legality.
Blockchain technology allows you to follow every step of the supply chain, making it easier to detect any fraud or tampering with the medicine. This can help in identifying and halting the distribution of counterfeit medications, as well as ensuring that only genuine medicines reach end users.
What are the drawbacks of blockchain-based product authentication?
While blockchain-based product authentication has numerous advantages, it also has certain drawbacks, such as high implementation costs, restricted scalability, and the necessity for compatibility between multiple blockchain networks.
Creating a blockchain-based system can be costly, and there may be additional costs associated with teaching workers how to utilize the system. Another challenge is the demand for technical know-how to construct and maintain a blockchain-based system. This may necessitate specialized skills that are difficult to find in a firm or industry.
Scalability is a further setback of blockchain-based product authentication. As additional products are added to the system, the size of the blockchain may grow dramatically, resulting in longer processing times and more expensive transactions.
When it comes to blockchain-based product authentication, data privacy is also an issue. Although blockchain technology provides a secure and impermeable record of transactions, data privacy remains an issue. Businesses must ensure that the data they collect and maintain complies with all applicable privacy regulations.
Another challenge with blockchain-based product authentication is adoption and acceptance. Because blockchain technology is still in its early stages, some stakeholders, such as suppliers, distributors, and clients, may be hesitant to accept it. This could limit the efficiency of blockchain-based product authentication.
Possible way forward
A potential route is to create enhanced blockchain-based systems capable of interacting with other technologies such as the Internet of Things (IoT) and artificial intelligence (AI). This may enable for more advanced tracing and authentication of items along the supply chain, minimizing the risk of fraud, counterfeiting, and other product tampering.
A further possible application of blockchain technology in product authentication is the formation of decentralized markets. These marketplaces would employ blockchain technology to facilitate direct transactions between buyers and sellers by eliminating intermediaries such as banks or payment processors. By doing so, it may be possible to increase transparency, reduce transaction costs, and build a more secure and reliable infrastructure.
The usage of blockchain technology could help both food safety and traceability. Businesses can ensure that food products are safe, high-quality, and fresh by tracking the entire supply chain with blockchain.
Don’t forget to check us out on: https://africablockchain.institute/
