Distributed Ledger Inventory Tracking via NFC Tags
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Solution Overview
Problem
The expansion of online commerce has increased the risk of customers purchasing counterfeit or defective products, as they cannot verify the authenticity or condition of items before receipt, and face difficulties in returns and refunds.
Innovation Solution
A method and system using distributed ledgers and NFC tags to track and authenticate products, where NFC tags provide unique identifiers linking to distributed ledgers stored across multiple computing devices, allowing for secure and reliable tracking of product transactions and inventory changes.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If distributed ledgers and NFC tags are used to track and authenticate products, then product authenticity and transaction reliability are improved, but device complexity and system implementation difficulty increase
Solution Approach 1:
The patent creates a distributed copy of the ledger across multiple computing devices (nodes), where each node maintains a copy of the blockchain. This allows the system to achieve high reliability through redundancy while distributing the complexity across multiple components rather than concentrating it in a single centralized system.
Solution Approach 2:
The patent introduces NFC tags as intermediary elements attached to products, which store unique identifiers and enable communication between products and computing devices. These tags act as mediators that simplify the authentication process by providing a standardized interface for product identification without requiring direct complex interactions between all system components.
2Device complexity
If centralized systems are used for inventory tracking, then system management is simpler, but security and data reliability deteriorate due to single point of failure
Solution Approach 1:
The patent segments the centralized database into multiple distributed ledger copies across different computing devices. Each computing device in the network maintains its own copy of the ledger, and transactions are validated across the distributed network. This segmentation eliminates the single point of failure while maintaining data integrity through cryptographic hashing and consensus mechanisms.
Solution Approach 2:
The patent changes the fundamental parameter of data storage from centralized to distributed architecture. By transforming the system from a single centralized database to multiple distributed copies, the patent maintains data reliability through replication and cryptographic verification while reducing dependency on any single system administrator or server.
3Ease of operation
If customers purchase products online without physical inspection, then purchasing convenience is improved, but risk of receiving counterfeit or defective products increases
Solution Approach 1:
The patent implements preliminary authentication actions by attaching NFC tags with unique identifiers to products before they are purchased. The distributed ledger records the complete history of each product from manufacture through delivery, allowing customers to verify authenticity in advance. This preliminary action of recording and verifying product identity prevents counterfeit products from entering the supply chain.
Solution Approach 2:
The patent provides feedback mechanisms to customers through the distributed ledger, which stores and makes accessible the complete transaction history and authentication status of each product. Customers can query the ledger to receive feedback about product authenticity, ownership history, and condition, enabling them to make informed decisions about purchases without physical inspection.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
This solution provides a secure and reliable method for customers to verify product authenticity and track transactions, improving the reliability of online commerce by ensuring the integrity of product information and facilitating secure returns and refunds.
Implementation Method 1
Near-field communication (NFC) is a short-range wireless communication technology enabling one-way or two-way wireless communications between two electronic devices. NFC tags typically do not require a battery—the wireless signals that the NFC tag receives from an 'active' powered NFC device such as a smartphone generally supply enough power to the NFC tag to allow the NFC tag to emit a detectable response
Implementation Method 2
generating a hash of a most recent block of the plurality of blocks and generating a new block header for a new block, wherein the new block header comprises at least the hash of the most recent block
Data Source
AI summary
Copies of a distributed ledger with multiple blocks are stored on multiple computing devices. A first computing device coming into proximity with a particular object triggers generation of a new block to the distributed ledger, the new block identifying changes to an inventory of objects of the object type and including a hash of a previous block of the distributed ledger. The new block is optionally verified before it is appended onto the distributed ledger and transmitted out to each of the multiple computing devices so that each copy of the distributed ledger includes the new block.