Using NFC and Blockchain technology to secure the supply chain
Why should you consider NFC and blockchain to secure your supply chain? Let’s start with a few basics.
NFC means Near Field Communications. NFC is a way to transfer data wirelessly by first detecting nearby devices enabled with NFC and then communicating with the devices without using the internet. You may recognize the technology from your smart phone and the iPhone app, Apple Pay, or Android Pay. It’s adapted from an older branch of technology known as RFID (radio frequency identification). NFC uses radio waves to transfer small amounts of data between enabled devices that are within centimeters of each other. NFC does not rely on the internet which removes a potential source for interference and manipulation.
What does all this have to do with supply chain? When you think about the supply chain for any given manufacturer, it’s clear that the company faces trust issues related to the many people, companies, even nations that have some contact with the product’s supply chain. If not trust issues, then the company faces the dangers of cyber security attacks or just old-fashioned theft. While the consumer may think of pharmaceutical thefts as in-store robberies, the thieves have stepped up their game to include attacks on warehouses and delivery vans to obtain, for example, prescription drugs. Experts say that cargo theft shave increased fourfold since 2012.
Add to these issues the constant ebb and flow of increasingly global supply chains, the difficulty in keeping goods moving efficiently and securely, and trying to stay one step ahead of malicious attacks on assets and the business’ worldwide communications networks. It definitely makes for a challenging environment.
NFC is in the early stages of use as a security component that, when combined with the blockchain technology like that used in cryptocurrency, creates a private blockchain that protect products while in the supply chain. This application of the NFC and blockchain technologies appears especially useful to the supply chain for pharmaceutical companies and fine art, as well as the chain of custody applicable to forensic evidence.
How does this new technology work in practice? A company called Chronicled developed a product called Cryptoseal. It is a thin, adhesive strip which contains an NFC chip inside. The NFC chip contains a product’s unique identifiers. Manufacturers can modify the size as required for each product and the strip attaches easily to any item. The strip contains the manufacturer’s identity, the object, its packaging, and any metadata unique to that product. The manufacturer registers all that information and verifies it with the Ethereum blockchain. The product then confounds forgery and assures the product’s identity and genuineness. It is just the beginning of tamper-resistant paraphernalia that, when combined with blockchain registration, will provide security for the supply chain’s chain of custody.
Three technologies better than one. Chronicled maintains that each component of the Cryptoseal is not enough on its own to protect the product’s identity. Together, however, the NFC chip, the tamper-resistant seal, and the blockchain registration present the best resolution to a supply chain obstacle.
To learn how one baby clothes fashion brand uses NFC and blockchain technology to track and verify a product, read the nfcworld.com article entitled “Fashion brand adds NFC and Blockchain for authentic personal clothing”. This technology may help eliminate the “knock-offs”, the flourishing criminal activity that sells unlicensed copies of popular and expensive designer label fashions and accessories. These items sell for far less than the originals at great harm to the original fashion line. Securing the supply chain in a way that proves the product’s authenticity protects not only the designer/manufacturer but also the consumer.
Blockchain Healthcare Review reports on blockchain technology and how it is reshaping information technology. The publication is dedicated to educating entrepreneurs, investors, key decision makers and enthusiasts alike.
