Counterfeit items have always been a problem. Fake bags, shoes, drugs, currency, you name it and they have counterfeited it (or tried). Where cryptocurrency is concerned, there are plenty of scams out there. However, the bad guys haven’t yet figured out how to counterfeit digital items. Actually, the blockchain can destroy counterfeit items. Here’s how.
Why You Want to Prevent Counterfeit Items
Some people may be thinking to themselves, who is a counterfeit item hurting? Much of the time, these items lead to product recalls and lawsuits. In more serious cases, a counterfeit can lead to prescription drug overdose, allergic reaction, or death.
Where Blockchain Comes Into Play
Blockchain can help identify and track the proof of origin of counterfeit items. This is because blockchain provides a secure tracking system for the supply chain. Every step of the way, from beginning to end, is tracked on the blockchain.
When a counterfeit item is produced and sent out, blockchain is able to help identify when the fake originated. It is able to do this through the use of smart tags. These tags will let you know where the item was manufactured, track the location, and other relevant information about the good as it works its way through the supply chain.
Common Types of Smart Tags
The most common type of smart tag that just about everyone has heard of is QR codes. These codes are easily scannable with a phone, iPad, or other mobile device and can relay information about the item when scanned.
RFID tags are another type of smart tag used to identify counterfeit goods using blockchain. Instead of using a QR barcode, RFID tags use radio waves to communicate the necessary information. A reader is used and emits radio waves and the RFID tag sends a signal back.
Another popular smart tag used in this process is laser marking machines. These are used to etch barcodes and graphics onto ceramic or metallic surfaces. Usually, a special scanner is needed to process this kind of tag. The scanner will collect data and trace the product.
Each product is assigned a smart tag before entering the supply chain, which is how it helps prevent counterfeit items.
How Blockchain Can Destroy Counterfeit Items
In theory, a scammer could create a counterfeit smart tag by duplicating a genuine tag. This would be incredibly difficult to do though. Scanning a duplicate smart tag would reveal that it is a counterfeit. Below is how blockchain can destroy counterfeit items industry by industry.
The fashion world has been overrun by counterfeits for decades. Fake Louis Vuitton purses and knock-off Air Jordans have been circulating forever it seems. Blockchain provides a tool for verifying the authenticity of an item.
Blockchain is also making it easier to track fake prescription drugs. Counterfeit malaria drugs are responsible for about 155,000 deaths of children each year. A platform called the MediLedger Network is being used in hopes to eliminate counterfeit drugs around the world altogether.
Electronics, another commonly counterfeited item, can also be guarded by blockchain. Honeywell, a well-known name in technology and security, has partnered with iTRACE and SecureMarketing to start using blockchain technology to verify the sale of electronics.
That being said, there are ways to guard yourself against being scammed. Always stay vigilant and use secure platforms when completing purchases.
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Drew Blankenship is a cryptocurrency investor, family man, father and lifelong automotive enthusiast. He lives in North Carolina with his wife, daughter and their dog Enzo.
