SYSTEMS, METHODS, AND MEDIA FOR PREVENTING COUNTERFEITING USING NON-FUNGIBLE TOKENS

Smart overview of the Invention

The patent application outlines a method to combat counterfeiting through the use of non-fungible tokens (NFTs). By integrating an ID tag into a physical product, which is recognizable by devices communicating over a network, the system links this tag to a digital asset. This asset, secured by an NFT, includes a unique product identifier and metadata. The NFT is stored on a blockchain, ensuring the authenticity of the product when the ID tag is scanned by a device.

Background

Counterfeiting is a significant issue for manufacturers of high-quality goods, leading to brand dilution and consumer deception. This challenge extends to digital products, where unauthorized reproductions can harm brand reputation and profitability. Traditional anti-counterfeiting measures are often complex and require constant updates to outpace counterfeiters. The application addresses these issues by leveraging NFTs to secure both physical and digital products.

Methodology

The method involves creating a digital asset that represents the physical item, secured by an NFT. This asset includes metadata like color, size, or material and is linked to the physical product's ID tag. When scanned by a device, such as a smartphone, the asset is displayed on an online platform. The blockchain network can be private, allowing controlled access for inventory management and transaction recording among various entities.

Applications

The system is applicable to various products including footwear, apparel, and electronic devices. It can also be used in digital realms to secure virtual objects against unauthorized duplication. By recording details on a private blockchain, entities like suppliers and retailers can update their systems with product-specific information, enhancing transparency and traceability.

Additional Features

The method extends to managing counterfeit reports from users via an online platform. Data about counterfeit items are used to create NFTs that notify ecommerce sites of illicit sales. This approach not only protects brands but also rewards users for reporting counterfeit goods. The system supports transferring digital assets to third parties, and it generates reports on transactions stored on both private and public blockchains.