Blockchain and IoT Team Up to Combat Counterfeiting in Handicrafts and Beyond
November 20, 2024A recent paper proposes a decentralized authentication system that integrates blockchain and Internet of Things (IoT) technologies to combat counterfeiting.
The system utilizes Ethereum as the blockchain platform, employing a Proof of Stake consensus mechanism along with smart contracts for transaction validation.
This architecture consists of three layers: the physical layer with IoT devices for data collection, the blockchain layer for data integrity and security, and the application layer for user interfaces and services.
In the physical layer, various IoT devices collect real-time data about products, ensuring accurate tracking and monitoring throughout the supply chain.
The integration of blockchain and IoT aims to enhance traceability, transparency, and verification of product authenticity, which is crucial in sectors like smart cities, healthcare, and manufacturing.
The proposed approach includes algorithms for validating product authenticity and registering products on the blockchain, thereby enhancing the security and reliability of the system.
Future research directions will explore the application of data analytics and AI optimization algorithms to further improve the efficiency and security of this decentralized system.
The rise in demand for handicrafts has led to an increase in counterfeit products, complicating the differentiation between genuine and fake items.
Counterfeiting negatively impacts legitimate producers, leading to consumer distrust and financial losses, as counterfeiters profit without incurring production costs.
The paper emphasizes the importance of authenticity in products to preserve cultural identity and foster consumer trust, which supports innovation and creativity.
Traditional knowledge and handicrafts are highlighted as key cultural assets that enhance cultural tourism, drawing visitors to regions known for authentic craftsmanship.
Despite the promising nature of this integration, challenges related to IoT security, interoperability, and standardization remain, necessitating the development of complementary technologies.
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