Blockchain Technology Detects Bogus Products
By Sandeep Kasalkar
By providing a tamper-proof and transparent record of the entire supply chain, making it easier to identify and verify the authenticity of products, and enabling the quick detection of any fraudulent behaviour, blockchain technology can help in the discovery of fake products.
Increased supply chain traceability and transparency using blockchain technology can help detect and halt the sale of counterfeit goods. By recording each transaction and movement of a product on a decentralised ledger, blockchain creates an immutable and transparent record of a product’s journey from producer to end-user.
Let’s use the supply chains for prescription drugs as an illustration. The World Health Organization estimates that one in ten medical products, such as pharmaceuticals, are fraudulent in developing countries, and that the problem is just as prevalent in rich countries. It will be easier to spot and halt the spread of bogus medications by creating a secure and open supply chain for medicines utilising blockchain technology.
In a supply chain built on blockchain technology, every time a drug changes hands, the transaction is recorded on the blockchain, creating an unalterable and visible trail of the product’s movements. The records are protected using cryptographic hashes, making it difficult for anyone to change the records covertly.
Moreover, supply chain verification and validation can be automated with smart contracts to ensure that the product has not been tampered with or diverted from its intended course. Smart contracts can also automatically send out alerts in the event that a fake product is found, allowing quick action to halt its distribution in the future.
The following phases in a blockchain-based drug supply chain can be monitored to stop the spread of fake medications:
Manufacturer:
The organisation that manufactures and packages the medication also records the particulars of that process on the blockchain.
Distributor:
The medication is subsequently sent to the distributor, who logs the medication’s receipt and transit on the blockchain.
Wholesaler:
The distributor delivers the medication to the wholesaler, who then collects it, authenticates it, and logs its route on the blockchain.
Pharmacy:
The pharmacy verifies the validity of the medication after obtaining it from the wholesaler and tracks its travel on the blockchain.
End-user:
The end-user can verify the legitimacy of the drug after making a purchase by scanning the blockchain-based QR code on the packaging.
Due to the ability to track every stage of the supply chain, blockchain technology makes it easier to detect fraud and drug tampering. This can help identify fraudulent medications and stop their distribution, ensuring that only real medications are given to patients.
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