Abstract

Existing product anti-counterfeiting and traceability solutions across today’s internationally spanning supply chain networks are indeed developed and implemented with centralized system architecture relying on centralized authorities or intermediaries. Vulnerabilities of centralized product anti-counterfeiting solutions could possibly lead to system failure or susceptibility of malicious modifications performed on product records or various potential attacks to the system components by dishonest participant nodes traversing along the supply chain. Blockchain technology has progressed from simply being a use case of immutable ledger for cryptocurrency transactions, to a programmable interactive environment of developing decentralized and reliable applications addressing different use cases globally. Key areas of decentralization, fundamental system requirements, and feasible mechanisms of developing decentralized product anti-counterfeiting and traceability ecosystems utilizing blockchain technology are identified in this research, via a series of security analyses performed against solutions currently implemented in supply chain industry with centralized architecture. The decentralized solution will be a secure and immutable scientific data provenance tracking and management platform where provenance records, providing compelling properties on data integrity of luxurious goods, are recorded and verified automatically across the supply chain.

Highlights

  • The problem of counterfeit product trading, including luxurious goods or pharmaceutical products, has been one of the major challenges the supply chain industry has been facing in an innovation-driven global economy

  • Given the growing concern in counterfeit trading activities, though there have already been a variety of innovative product anti-counterfeiting solutions introduced in supply chain industry, the main research question is as follows: “Why would existing anti-counterfeiting and traceability systems benefit from decentralization enabled by blockchain technology to better combat the rampant counterfeiting attacks?”

  • These attacks manipulating threats listed under the physical near-field communication (NFC) tag threats and system threats according to the threat analyses performed are (1) modification of product records stored in tags, such as fabricating product identifiers or vintages of any product; (2) cloning of metadata stored in tags such as those genuine product records to any counterfeit product tag; and (3) removal of a legitimate tag from a genuine product and its reapplication to any other counterfeit products

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Summary

Introduction

The problem of counterfeit product trading, including luxurious goods or pharmaceutical products, has been one of the major challenges the supply chain industry has been facing in an innovation-driven global economy. Given the growing concern in counterfeit trading activities, though there have already been a variety of innovative product anti-counterfeiting solutions introduced in supply chain industry, the main research question is as follows:. This research will focus on explaining the reasons why these existing supply chain software solutions, including NAS, would benefit from decentralization enabled by blockchain technology. Based on the findings and opportunities identified from these analyses, a set of fundamental system requirements of developing a decentralized product anti-counterfeiting and traceability system is defined The decentralized solutions, such as the Decentralized NFC-Enabled Anti-Counterfeiting System (dNAS), are aimed at delivering a more secure and higher quality approach to verify authenticity and provenance of luxurious products, such as bottled wine. The decentralized version of the existing solutions, such as dNAS, could define a framework and practice for different nodes along the supply chain to integrate the low-cost, real-time, and immutable blockchain technology into their daily supply chain workflows

Background
Decentralizing with the Blockchain Technology
Blockchain at the Core
States and Accounts
Smart Contracts and Ethereum Virtual Machine
Related Work of Blockchain Implementations
The NFC-Enabled Anti-Counterfeiting System—NAS
Security Analysis on NAS
Asset Analysis
Threat Analysis
Discussion of Research Results
Summary of Vulnerabilities on Centralized System Architecture
Improved Data Integrity of Supply Chain
Strengthened Security Considerations
High Availability of System Functionalities
Potential Concerns on Development of Decentralized Solutions
Manageable System Integration Model
Degree of Decentralization
Limited Scalability
Potential Security Vulnerabilities
Findings
Privacy Concern
Conclusions

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