Blockchain for Anti-Counterfeiting in the Luxury Goods and Pharmaceutical Industries
Counterfeiting is one of the major issues in the world. Fake luxury goods such as bags, watches, and shoes are purchased by many individuals. Fake drugs are sold even in the sphere of medicine, and it is quite dangerous and even fatal. The question I have always had is how this problem can be solved by the use of technology.
Blockchain is one of the solutions that has been gaining popularity. Blockchain is a special sort of digital system, which keeps records in a safe and permanent way and easy to check. It has the potential of assisting industries to prevent counterfeiting through assigning unique digital identity to each product.
Fraudulent items cost companies in the luxury goods industry millions of dollars annually. Once the product is produced, one can add a record to the blockchain that contains data, such as time of production, factory, and owner. The information is updated each time the product passes through the stores or distributors or even through the online shops.
This simply makes anyone know whether the product is genuine or not. I believe that it is extremely powerful since even when one intends to duplicate the product, he or she will be unable to duplicate the digital record on the blockchain. This is a useful way of securing brands, but also ensures that buyers are assured of purchasing original commodities.
It is a more severe problem to the pharmaceutical industry. Counterfeit drugs may negatively affect the health of the people or can even lead to their death. Blockchain would assist in tracking each drug to the pharmaceutical store. The blockchain can store a code on each batch of medicine.
By scanning the code, the pharmacies and hospitals can identify the medicine as original before administering it to patients. In my opinion, this application of blockchain can save the lives of many people as it will minimise the risks of counterfeit drugs entering the market.
Another opinion of mine is that blockchain will increase the transparency of the supply chain. The route of the product can be seen by the companies, regulators and customers alike. This enhances faith and minimizes fraud.
Others fear that blockchain is a complicated technology, yet in actual sense, one may not need to do a lot of work regarding this method of anti-counterfeiting when the technology is established.
Finally, blockchain is very instrumental in combating counterfeiting of luxury products as well as drugs. It gives a lasting document of authenticity, builds trust and safeguards both the companies and the consumers.
I am also enthusiastic about the possibility of this type of technology and wish it was used in more industries, soon. Blockchain will allow making the future safer, more reliable, and less risky both to buyers and patients.