The European Union (EU) is working on a project that involves blockchain architecture and the use of non-fungible tokens (NFTs) to combat counterfeiting and tampering. The project is the fruit of several meetings and blockchain hackathons organized by the European Union Intellectual Property Office and proposes to create digital twins of products to work their way through supply chains.
The European Union will use NFTs to protect intellectual property
The European Union recently announced that it is working on a system that will use blockchain and NFTs as part of its fight against counterfeiting of physical goods.
The proposed system will be designed by the European Union Intellectual Property Office and is the result of more than five years of work. A document published this month explains that the organization has already selected a high-level architecture for this task and details the generalities of how the system works.
Intellectual property (IP) holders will create digital tokens (twin NFTs) to prove that a group of produced goods is genuine. These intellectual property owners will need to be included as approved signers in advance to create these products on the tracking blockchain.
The solution will then enable supply chain tracking as products are transported through various checkpoints, allowing intellectual property owners to be certain that products reaching stores are genuine.
The European Union Intellectual Property Office hopes to have a functioning system by the end of 2023, but to achieve this goal it will need to create a registry system of all intellectual property owners, operations EU logistics and retailers. To better achieve its goal, the report says the system will seek to be interoperable with existing supply chain tracking solutions.
If the European Union manages to implement this system by the end of 2023, it will be one of the first applications of blockchain technology on this scale for the purpose. However, blockchain technology has also been used for tracking supply lines before. Recently, Vechain, an enterprise blockchain project, announced a Partnership with Orionone, a global supply chain technology solution, to integrate blockchain into its working technology stack.
The European Union is also currently discussing MiCA, a proposed Union-wide law to regulate cryptocurrencies.
What do you think of the blockchain and NFT solution proposed by the European Union to fight counterfeiting? Tell us in the comments section below.
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