Fake Product Identification by QR Code Using Blockchain

Abstract

Ever since its inception in 2008, Blockchain technology has been widely used in most industries to ensure data security and authenticity. From Bitcoin to Blockchain-as-a-Service (BaaS), it has been increasingly adopted. Counterfeiting is one of the biggest issues that companies are fighting, impacting revenues, brand value, and customer trust. In this review, a decentralized Blockchain- based supply chain solution to ensure product authenticity without third-party dependency is discussed. Through the use of distributed ledger technology, authentic and fake products can be identified at all levels. Unique QR codes, produced by the system proposed here with SHA-256, provide transparency and traceability to each product. Blockchain-based anti-counterfeiting mechanism provides a secure, tamper-evident method of proving product authenticity, allowing organizations to uphold integrity in their supply chain.

Introduction

Project Overview

This project addresses the global problem of counterfeiting across industries like pharmaceuticals, electronics, luxury goods, and food. Existing methods such as serial numbers and manual checks are inadequate. The proposed system combines QR code technology with blockchain to offer a secure, transparent, and tamper-proof solution for verifying product authenticity.

Key Concepts

• Unique QR Codes: Each product is tagged with a unique QR code containing key data (product ID, manufacturer info, timestamps, blockchain transaction hashes).

• Blockchain Integration: All product data is recorded immutably in a decentralized blockchain ledger, ensuring data integrity and preventing tampering.

• Real-time Verification: Consumers and retailers can scan the QR code via a mobile or web app to instantly confirm the product’s authenticity.

• Smart Contracts: Automate the verification and update process without human intervention, ensuring only legitimate data is entered and updated.

System Features

1. User Registration & Authentication: Secure user access using unique IDs and multi-factor authentication. Only verified manufacturers can register products.

2. Product Registration: Manufacturers enter product data, which is securely stored on the blockchain. A unique QR code is generated for each product.

3. QR Code Scanning: Users scan the QR code using a smartphone. The app checks the blockchain for matching data to verify authenticity.

4. Supply Chain Transparency: Every step in the product’s lifecycle—from manufacturing to retail—is recorded, enabling full traceability.

5. Tamper Detection: The system flags any discrepancies between the scanned data and the blockchain, identifying counterfeit products instantly.

6. User-Friendly Interface: A simple, intuitive mobile/web app facilitates product registration, scanning, and transaction tracking.

System Architecture Components

• Manufacturer Registration Module: Enables secure onboarding and product input.

• QR Code/NFC Tag Generation: Assigns blockchain-linked identifiers to products.

• Blockchain Ledger: Stores product lifecycle data in an immutable format.

• Smart Contracts: Automate registration and verification tasks.

• Supply Chain Tracking Module: Tracks product movement across the supply chain.

• Fake Product Detection Engine: Uses scan patterns, reviews, and irregularities to identify counterfeits.

• Reporting & Alert System: Notifies relevant stakeholders in real-time upon detection of a fake product.

Development Methodology

• Phase 1: Market research and system design.

• Phase 2: QR code algorithm development and blockchain linkage.

• Phase 3: App development and testing.

• Phase 4: Pilot testing and full-scale deployment after feedback analysis.

Security Features

• Cryptographic Hashing (e.g., SHA-256): Secures product data.

• Tamper-Proof Transactions: All blockchain entries are permanent and verifiable.

• Smart Contracts: Enforce strict access control and automatic execution.

Results

• The project demonstrated successful real-time authentication of products.

• Counterfeit products were correctly identified and flagged.

• Supply chain transparency was achieved through traceable, immutable blockchain records.

• The system was proven scalable and capable of handling high transaction volumes efficiently.

Future Enhancements

• AI-based fraud detection

• IoT integration for advanced supply chain tracking

• Expansion into more industries and use cases

Conclusion

The \"Fake Product Identification by QR Code Using Blockchain\" project addresses the issue of counterfeit products by using QR codes and blockchain technology to verify product authenticity. Blockchain ensures immutability and transparency, and it is nearly impossible to tamper with product information, thereby increasing consumer trust and confidence. The system positively helps manufacturers and retailers by maintaining an accurate, clear record of merchandise from production through sale to avoid losses through counterfeiting and maintain stock up to date in real-time. Future developments are to incorporate IoT and AI for better detection and expand the size for global and multi-language uses, a scalable system to fight counterfeiting worldwide. Future development of a blockchain-based e-voting system will consist of its enhanced functionality and security. The introduction of IoT devices like smart sensors or RFID tags to track products in real-time, enhancing traceability is some of the significant developments. Other evolutions may involve reviews, ratings, and verification history of the products to enhance consumer trust and interaction. The system would further be connected with large e-commerce websites and mobile apps so that product verification would be simple. Finally, incorporation with support for multiple languages and region law support would allow it to grow freely across the entire globe, utilizing the decentralized nature of blockchain to operate flawlessly in multiple jurisdictions.

References

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Copyright

Copyright © 2025 Mrs. Gandhimathi K, Mr. Agathiyan J, Mr. Arvind R, Mr. Harisujith V, Mr. Lalith S, Mr. Naveen Kumar D. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.