Distributed Ledger Product Authenticity Verification
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Solution Overview
Problem
Current solutions for preventing counterfeiting, such as centralized databases and serialization methods, are ineffective due to vulnerabilities in data security and ease of manipulation, leading to widespread illicit trading and corruption, especially in industries like automotive parts, tobacco, and luxury goods.
Innovation Solution
A distributed ledger system, like blockchain, is implemented to verify product authenticity through unique identifiers (SLIDs) and smart contracts, allowing for secure ownership tracking and transfer, with multiple nodes validating transactions to prevent fraud and ensure data integrity.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Device complexity
If centralized databases and serialization methods are used for product tracking, then implementation cost and complexity are reduced, but security against counterfeiting and data manipulation is compromised
Solution Approach 1:
The system segments the centralized database into multiple distributed nodes across the supply chain. Each node (manufacturer, distributor, retailer, consumer) maintains a copy of the ledger, eliminating the single point of failure and manipulation vulnerability inherent in centralized systems.
Solution Approach 2:
The patent introduces cryptographic hash functions and digital signatures as intermediaries between product identifiers and ownership records. These cryptographic mechanisms mediate the verification process, ensuring that product codes cannot be forged or altered without detection.
2Ease of operation
If centralized registration systems are implemented, then ease of operation is improved, but vulnerability to corruption and unauthorized access increases
Solution Approach 1:
The patent merges the registration functions into the distributed ledger itself. Instead of separate registration systems that are vulnerable to corruption, the ownership and product information are combined into a single immutable chain of blocks that is replicated across all nodes, making corruption extremely difficult.
Solution Approach 2:
The system performs preliminary cryptographic validation of product codes and ownership transfers before recording them in the ledger. Digital signatures and hash verification are executed in advance, preventing unauthorized or corrupted entries from being accepted by the network.
3Ease of manufacture
If current serialization solutions are used, then manufacturing simplicity is maintained, but protection against ID copying and fabrication is lost
Solution Approach 1:
The patent replaces mechanical/physical serialization methods (printed codes, stickers) with cryptographic mechanisms. Instead of relying on physical security features that can be copied, the system uses mathematical proofs of authenticity embedded in the distributed ledger that are computationally infeasible to replicate.
Data Source
AI summary
A system for determining and verifying authenticity of a product unit comprising: a ledger system comprising at least two nodes; at least one product code attached to the product unit and having an entry in the at least two nodes, the entry defining at least a current owner and a hash of product information; the system capable of self-executing computer code for providing a request for transfer of ownership of the product unit by initiating a request from a portal and accessing a first node of the at least two nodes; quantifying a consensus of product information from the first node to a second node; engaging a self-executed computer code via confirming ownership between the first and second nodes; forwarding a request to an owner; and upon approval by the owner, confirming change of ownership by registering and confirming a change within the first and second nodes.