Tracking information with Blockchain – Not limited in traceability

BLOCKCHAIN
TRACEABILITY
Tracking information with Blockchain – Not limited in traceability

08/04/2020

Besides the application of Blockchain in agricultural product traceability, this technology can also be applied to solve many other problems such as anti-counterfeit goods, theft, and document digitalization.

Blockchain is currently a hot keyword in the world of technology. The keyword “Blockchain” started to emerge after the investment fever in Bitcoin in late 2017. However, most people often confuse Blockchain and Bitcoin and believe that Blockchain is just a technology applied to the financial sector. Blockchain is a revolutionary technology for storing and handling information. Therefore, Blockchain is applicable in many other fields, such as supply chain, education, health, and data digitalization.

Simply explained, a blockchain is a time-stamped series of immutable records of data that is managed by a cluster of computers joining into that Blockchain. Each of these blocks of data is secured and bound to each other using cryptographic principles. Because there is no central server required to store data, the information on the Blockchain is completely open, creating transparency and undeniable information.

 

The current traceability systems are developed in a centralized database. The traditional traceability system is untransparent. It does not earn consumers’ trust because the retrieved information can be changed entirely or deleted. Therefore, Blockchain is the optimized solution for the current traceability system. With Blockchain, all actual information recorded cannot be altered, modified, or deleted. Consequently, it makes the recorded data complete transparent and reliable as well as highly secure.

Besides the Supply Chain, Blockchain is applicable in many other fields. It helps businesses to solve current problems and improve their competitiveness.

How can Blockchain-based traceability prevent counterfeiting?

Counterfeit goods damage the world economy 1.2 trillion USD annually; this figure can increase to 1.82 trillion USD by 2020. Goods counterfeiting causes economic losses and more damages to society as tax losses, fraud, and increasing illegal activities, then adversely affecting the health and safety of consumers.

Blockchain can solve this problem by providing consumers with transparent, complete, and accurate information about the origin of the product. From there, consumers can distinguish fake and genuine goods through the traceability of the product.

 

WOWTRACE demos Blockchain anti-counterfeiting solution at the 6th International Conference in Ho Chi Minh City Hi-tech Park in 2019

Currently, most of the anti-counterfeiting solutions are implementing through hologram stickers, QR codes, product verification systems, etc. These anti-counterfeiting methods are not the optimal solution because these data can be imitated and faked. Many blockchain-based traceability projects have developing solutions for solving this problem. One of them is WOWTRACE — a Blockchain-based traceability solution startup; they identify each product uniquely and store information on the Blockchain. Each product has its unique ID and information coming along with proof of transaction on the Blockchain, making it impossible to forge.

Most traceability solutions use QR codes only, which can easily be copied and pasted into fake products. WOWTRACE develops alternative anti-counterfeiting solutions such as using NFC and Blockchain encryption technology. When consumers scan the codes on a product, only authentic product information is available. If the imposters copy this QR code and attach it to the fake product, consumers won’t get the product information by scanning in the same way. Then, they can distinguish the counterfeit products. This solution helps improve the anti-counterfeiting capability for businesses.

Application of Blockchain in anti-theft

According to the report of the Association of Certified Fraud Examiners (ACFE), every year, each manufacturing enterprise loses about 194 thousand USD due to stealing and fraudulent activities. Thefts usually target high-value components and accessories to exchange these components and spare parts with the low-quality and cheaper ones. This situation causes serious losses to the manufacturer. Notably, it is more challenging to manage when the company uses cross-border manufacturing model or in the case of returned products for warranty.

Blockchain-based traceability can help businesses control this risk. By using the transparent, incontrovertible, and immutable characteristics of the information stored on Blockchain, businesses can strictly control each component throughout the supply chain. Each component is identified with a unique ID and updated on Blockchain through NFC technology and QR code will create a solid foundation for the management of inbound materials. Then, when assembling these components, the details of the assembly process will be verified on the Blockchain with private keys issued to each worker in the production line. This information is unable to change or delete, modify, and undeniable. Businesses can reduce the fraud of goods because all activities are closely monitored and can be retrieved easily to detect signs of fraudulently exchanging or stealing goods. This solution can be applied similarly across the entire supply chain, including warehousing, transportation, retail, warranty to limit product theft and fraudulence. Thereby, businesses can better control their business activities and minimize the risks coming from unrighteous acts internally and externally.

Blockchain-based data digitalization

The digital asset management market is worth about $ 1200 billion in 2018 and has an estimation to reach about $ 6900 billion by 2024. Digitalization of data and digital asset management is the world trend because this is an effective way to help businesses reduce cost and time of handling paperwork, as well as improve the quality of services and easily share information.

The field of digitalization of documents and digital asset management is facing big challenges, including limited communication between parties, untransparent information sharing or the possibility of data deletion and modification, data security, difficulty in validating documents, and property rights. Most current digital asset management solutions are built on centralized data technology. This means that only a few parties take the role of validating the information and update it on the system; and difficulties in sharing information. Also, the centralized data system carries many risks because the information can be intentionally altered and the system may get attacked, causing the stored information to be deleted or stolen.

There have been many Blockchain startups to solve these shortcomings. WOWTRACE is one of the pioneering startups in this field. WOWTRACE’s solution will identify the documents and assets that need digitizing by using a unique QR code to store all this data on the Blockchain. With this solution, information about the status of ownership, the transactions of documents and assets are constantly updated. At the same time, data stored on Blockchain can be easily accessed and shared with high security while preserving transparency. Therefore, WOWTRACE’s solution can be applied in enterprises or administrative procedures of governments such as information authentication, tracking digital asset status, ownership verification in such a safe way, helping businesses and governments save a lot of time and money.

Anti-counterfeiting, fraudulently exchanging goods prevention; Data digitalization and digital assets management are just blockchain applications in terms of information management and retrieval. These applications help businesses and society save a lot of time and costs; meanwhile, increase transparency, prevent fraud and illicit behaviors. It is Thereby contributing to the sustainable development of society.

About WOWTRACE

WOWTRACE is a completed ABCD (AI, Blockchain, Cloud, Data) Traceability Solution that brings sustainable growth and transparency to the supply chain across Asian countries. Thereby, all stakeholders achieve end-to-end visibility and control over their operations on the supply chain.

Learn more about WOWTRACE at: https://www.wowtrace.io/

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