Supply Chain Tracing and Anti-Counterfeiting with Distributed Ledger Technology

Abstract

In recent times, there has been a rampant proliferation of counterfeit products that has left a trail of devastation in the manufacturing sectors. The repercussions of this extend to companies, impacting their brand reputation, revenue streams and overall profitability. Industries like agriculture, banking, electronics, and high-value deliveries uses the emergence of blockchain technology as a powerful tool to discern between authentic and counterfeit items. Its potential as a means to curtail the influx of fake products in the market is substantial. Blockchain technology, at its core, operates as a decentralized and distributed digital ledger system, meticulously recording transactions within interconnected blocks across multiple databases. The inherent security of this technology ensures the immutability of these blocks, rendering them invulnerable to alteration or hacking. By leveraging blockchain technology, consumers can independently verify the authenticity of a product, eliminating the need for reliance on third-party intermediaries. Incorporating recent technological advancements, the utilization of Quick Response (QR) codes offers a robust approach to combat the proliferation of counterfeit goods. The integration of blockchain technology with QR codes serves as a means to uphold the integrity of products. This innovative system securely stores product details and unique codes in the form of blocks, where QR codes play a pivotal role in collecting and matching these unique codes with entries in the blockchain database. If the QR code matches with entries in the database, the user receives a confirmation of the product's authenticity; otherwise, an alert is triggered, signaling the presence of a counterfeit product.