Blockchain Technologies’ NFC Role in Product Authenticity
According to the 2020 Gustavson Brand Trust Index, levels of consumer trust in today’s brands have reached an all-time low. At the same time, over 90% of customers report “authenticity” as the most important factor influencing their purchase decision process.
So, in today’s rapidly changing environment, it is imperative for brands in all industries to focus on delivering high levels of product and brand authenticity. But can this be done effectively as the global supply chain continues to expand and become more complex?
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New blockchain-based technologies such as NFC tags can help brands access and deliver real-time, accurate and truthful information, which can help consumers verify authenticity claims and brand claims.
In this guide, you can better understand how blockchain-based NFC technologies play an increasingly important role in securing and authenticating products throughout their journey from manufacturer to consumer.
What is NFC technology?
NFC – or Near-Field Communication – technologies are an emerging solution that is already being adopted successfully in a wide range of markets and industries.
Today, one of the best-known areas of use for NFC technology is in contactless payments and financial transactions. NFC crypto payments are also becoming increasingly popular.
In particular, thanks to their unique features, NFC technologies can be effective used in product authentication to prevent tampering and fraud attempts.
This two-part system enables the exchange of information between the NFC tag and an enabled reading device (ie any modern smartphone).
Some of the key features of the NFC communication protocol include:
- The information exchanged is encrypted
- Information is exchanged over a short range, usually 4 cm
- NFC tags are tamper proof and almost impossible to counterfeit
- An attempt to modify the product renders the NFC tag unusable, thereby helping manufacturers detect threats.
NFC and Blockchain Technologies: How Smart Packaging Drives the Next Era of Product Authenticity
Working with a product authentication specialist, you will be able to implement an NFC-based product authentication system by leveraging the unique capabilities of this technology.
This is how it works.
NFC-embedded labels and smart packaging solutions help to create a digital twin of the product itself.
When the label is scanned by enabled devices, each product’s transaction is recorded in the blockchain, thereby creating an immutable and unalterable trail of information about the product’s journey to the consumer.
Both manufacturers and consumers can then access this information by scanning the NFC tag through ad hoc devices and smartphones.
A product authentication expert can help you understand how to incorporate NFC tags, blockchain-based technologies and NFT digital twins into your product authentication strategy.
The benefits of increasing product authenticity through NFC solutions
NFC tags and blockchain-based are rapidly growing in popularity, and new uses for these technologies are being found every day. Here are just a few of the unique benefits of implementing blockchain-backed NFC solutions.
Tamper-proof physical-digital seals
NFC tags and labels act as “physical-digital seals” for your products throughout their journey through the supply chain. When the NFC tag is incorporated into the product’s packaging, opening and tampering can be easily detected and prevented.
Real-time data and information
NFC tags can be scanned by any smartphone and provide a quick and efficient exchange of information.
Thanks to their ability to deliver real-time, accurate information about a product’s status and location, NFC-enhanced packaging represents an efficient solution for companies looking to gain greater supply chain visibility.
Secure exchange of data
Since the information carried by NFC is exchanged in an encrypted manner, immediately and at a short distance of around 4 cm, these systems leave little scope for attempted data breaches.
Also, every product transaction is automatically recorded in the blockchain, creating immutable records that are immune to tampering and fraud.
User-friendly data interfaces – for manufacturers and consumers
NFC tags play a critical role in helping manufacturers guarantee product authenticity – and in ensuring consumers can verify the claims a brand has made.
This system can prevent counterfeiting and help consumers make informed choices about the products they buy, but it also helps manufacturers ensure that no counterfeiting attempts and fraudulent activities take place throughout the supply chain.
Work with a Blockchain and NFC product authentication specialist
While blockchain-based NFC solutions represent an effective solution for most businesses, they may not be the best option for all organizations.
Working with a product authentication specialist can help you understand which technologies to invest in to ensure a streamlined product authentication strategy that works for both your team and your customers.
