Cointelegraph has produced a comprehensive article on how blockchain and DLT is leveraged to detect fake products and components in various forms of production.
Addressed under a number of headings, the article puts forward various arguments for why blockchain can provide the transparency that is “crucial in preventing the circulation of fake products.”
- What is the importance of supply chain transparency?
Supply chain transparency is crucial in preventing the circulation of fake products. Therefore, businesses must take steps to protect their brand and reputation from being tarnished by knockoff goods.
Counterfeit products have become a growing problem, affecting both consumers and legitimate businesses. These products can be harmful and frequently are of low quality, ranging from counterfeit electronics and medications to designer handbags and clothing.
Similarly, counterfeit medicines can be ineffective or even harmful, and they are a major problem in developing countries. For example, in 2012, around 100 people died in Pakistan after taking fake heart medicine. In 2017, Hermes filed a lawsuit against an online shop for selling imitation Hermes bags, which hurt the reputation of the high-end brand.
Fake products hurt genuine businesses, which lose money and their reputation, in addition to consumers who inadvertently buy these products. Consumers must be aware of this problem and make appropriate efforts to avoid purchasing fraudulent goods.
Supply chain transparency is important for a number of reasons:
Quality control: Companies are able to better understand their suppliers and the procedures used to produce their products when the supply chain is transparent. Because of their ability to spot and resolve any flaws or concerns that develop in the supply chain, businesses are able to improve quality control.
Sustainability: Transparency in the supply chain is crucial for confirming that businesses are acting ethically and sustainably. Companies can find areas where they might lessen their environmental impact and enhance the working conditions of their suppliers by tracking the whole supply chain.
Customer trust: As customers come to anticipate transparency in the items they purchase, supply chain transparency can contribute to increased customer trust in businesses. Companies can show their dedication to sustainability by disclosing details about the sources of their products and the processes used in their production.
Risk management: Supply chain transparency enables businesses to spot possible hazards and take precautions to reduce them. For example, organisations can identify suppliers in high-risk sectors or those with bad track records and take steps to lessen their reliance on these providers.
Compliance: Rules and regulations in a variety of industries frequently demand supply chain openness. Companies may make sure they are following these laws and staying out of trouble with the law by establishing a transparent supply chain.
The article goes on under the headings:
- How does blockchain technology help in fake product detection?
- What are the benefits of using blockchain for product authentication?
- What is the role of digital identities in fake product detection?
- Are there any companies using blockchain for product authentication?
- What are the challenges and limitations of blockchain-based product authentication?
- What are the future directions and potential applications of blockchain technology in product authentication?
Blockchain technology can help to avoid fraud and counterfeiting, preserve consumer safety and improve overall economic performance by providing a secure and transparent record of transactions, it concludes.
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