Fake Product Identification Using Blockchain Technology

Abstract

Counterfeit products have become a growing threat to consumer safety, brand value, and global trade, particularly with the rise of digital commerce and globalization. Traditional countermeasures such as RFID, holograms, or centralized verification systems often fall short due to their vulnerability to duplication, tampering, and lack of transparency. By leveraging blockchain’s decentralized and immutable ledger, the system ensures that once product data is registered, it remains tamper-proof, thereby providing a reliable basis for authenticity verification. In this framework, each item produced is assigned a distinct identifier—such as a QR code or barcode—linked to blockchain records that store product metadata and ownership history. End users can validate authenticity by scanning the identifier through a mobile application, which interacts with the blockchain to confirm legitimacy. A successful match authenticates the product, while mismatches identify counterfeit goods. The architecture also incorporates role-based dashboards, enabling manufacturers to register and monitor items, vendors to manage certified inventories,and buyers to instantly validate purchases. With the integration of automated smart contracts code generation, and real-time blockchain interactions, the system demonstrates scalability, security, and cost-effectiveness. By combining tamper-proof records with accessible verification tools, the model enhances supply chain traceability, strengthens consumer confidence, and safeguards brand reputation. Potential future extensions include applying artificial intelligence for predictive fraud detection, integrating IoT sensors for live tracking, and optimizing blockchain deployment for industrial-scale adoption. This approach offers a robust pathway toward protecting consumers and industries from the risks of counterfeiting.

Introduction

The rapid growth of globalization and e-commerce has led to increased counterfeit products across industries like fashion, pharmaceuticals, electronics, and aerospace. Counterfeits cause financial losses, safety risks, and erode consumer trust. Traditional verification methods (RFID tags, holograms, centralized databases) are vulnerable to copying, alteration, or hacking, highlighting the need for a secure, tamper-proof authentication system.

Proposed Solution:
Blockchain technology offers a decentralized, immutable ledger that securely records product data. Each product is assigned a unique QR code linked to a blockchain record via cryptographic hashing. Consumers can scan the QR code with mobile devices to instantly verify authenticity by comparing it to blockchain entries. Genuine products match the blockchain data, while discrepancies flag counterfeits. This system increases transparency, reduces intermediaries, and improves accountability along the supply chain.

Literature Review:
Prior studies have developed blockchain models integrating QR codes with smart contracts on platforms like Ethereum. These models demonstrate enhanced security, scalability, and cost-efficiency over traditional methods, emphasizing blockchain’s strength in immutability and consumer-driven verification.

Methodology:
The framework involves product registration at manufacture, QR code assignment, and real-time verification via smart contracts accessible through mobile/web apps. Role-based dashboards enable manufacturers, vendors, and customers to manage product information securely, reducing reliance on third parties and improving supply chain transparency.

Results:
Implementation showed the system could generate unique QR codes, enable instant authenticity checks, and store immutable product data. Verification speed improved dramatically (from ~4.5 minutes to ~1.3 minutes), tampering risks were nearly eliminated, and user trust increased significantly. Role-based dashboards streamlined operations and fostered accountability. Performance metrics showed high accuracy (96.8%), precision (95.4%), recall (94.7%), and F1-score (95.0%). Scalability tests confirmed suitability for industries vulnerable to counterfeiting.

Comparative Analysis:
Compared to traditional verification methods, the blockchain system outperforms in verification speed, transparency, scalability, user trust, and security.

Conclusion

The research presented in this paper addresses the critical global challenge of counterfeit products, which not only undermine consumer trust but also damage brand reputation and create severe financial and safety risks. By introducing a blockchainbased verification framework, the study demonstrates how decentralized and immutable technologies can be effectively applied to resolve product authentication concerns across diverse industries. A central contribution of the system lies in its integration of unique QR codes that are securely linked to blockchain records. This feature enables consumers to validate product authenticity instantly at the point of purchase, eliminating the dependence on intermediaries.In contrast to traditional techniques like holographic labels, RFID tags, and centralized databases—often vulnerable to replication and manipulation—the proposed system delivers a tamper-proof and real-time verification mechanism that is both reliable and user-friendly. The inclusion of role-based dashboards further enhances accountability across the supply chain. Manufacturers are able to register and track their goods securely, vendors can manage inventories with confidence, and consumers gain the ability to independently validate their purchases. This multi-stakeholder design fosters transparency and shared responsibility, ensuring that trust is embedded at every stage of the product lifecycle. By empowering each participant with secure access, the system creates an ecosystem that is both sustainable and resilient against counterfeit infiltration. The comparative evaluation results reinforce the effectiveness of blockchain integration. Key performance indicators such as transparency, verification speed, and consumer trust exhibited significant improvements when compared to traditional systems. Notably, verification time was drastically reduced, and the likelihood of tampering was nearly eliminated. These outcomes highlight blockchain’s transformative role in enhancing supply chain security and establish a new benchmark for product verification in industries most affected by counterfeiting.

References

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Copyright

Copyright © 2025 Prakyath ., Ashwin S, Vinyas B G, Spoorthi . 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.