Studies show that the number of counterfeit products has increased over the past few years and many of them were imported into the country. There have been many prevention measures, quality checks, and other protocols implemented to curb this fraudulent practice. A potential solution to fake products is Blockchain technology. Companies can use smart contracts and Django web development to create a method that introduces transparency to supply chains. Blockchain can be used to authenticate a product and stop customers from being fooled by knockoffs.
Brands are no longer threatened by counterfeit products and they can build consumer trust with the help of smart contracts. The Django web development company can create a proactive system that includes all involved parties in the transaction. They can view the lifecycle of the product from source materials to manufacturing and transportation to the shop, so they know the products are reaching their end customer.
The Pre-Blockchain Retail World
Counterfeited products are not only limited to luxury items like jewelry, designer clothes, shoes, and art. It includes many traditional products where retailers can disguise off-brand or faulty products as the original. These could be electronic devices, alcohol, tobacco, toiletries, pharmaceuticals, food items, and agricultural goods.
It is more dangerous to lie about the origin, formula or other specifications of prescription products and customers can suffer from more than monetary damage. The counterfeit product might have harmful ingredients or additional chemicals that could affect an ailing person in a negative manner. Fake medicine is a major issue in developing countries and may even result in death. There are organizations that intercept the smuggling of knock-off drugs but they cannot be present at every trade hub.
The practice has only picked up in the last few years and there is a need for massive intervention. Blockchain technology can contribute to the global attempts being made to rid the economy of counterfeit businesses. Blockchain systems can introduce transparency and help the world move towards a permanent and secure way to conduct business. There are ways to implement the technology with Django web development that counter fraud and come towards a globally acceptable solution.
The Role of Blockchain
Blockchain can help establish a network of participants that share the database amongst themselves. They will have all the details relevant to the lifecycle of any particular commodity. A few selected participants can help report the details to the combined Django web application server and verify at each point. Once information is added to the database, no one can tamper with it. All participants will immediately notice any corruption or modification which means the data is secure.
Consumers can use the internet to review all the products they buy on their own. The information includes the date and place of origin, manufacturing details, expiry date, ingredient sources, and any relevant compliance certificates. They can verify the authenticity and notify all sellers, regulators, and manufacturers in case they receive a faulty item using Django web development. Producers can also track each phase of their item and monitor the supply chain for better efficiency.
Advantages of Implementing Blockchain
Counterfeit items have always been a problem for suppliers as well as customers. The pharmaceutical industry loses over $200 billion every year because of counterfeit medicine and relevant activities. A distributed ledger can act as the archive and provide every buyer with a chain-of-custody log that goes back to the origin. It contains every phase in the supply chain and helps organizations offer a complete product history to their customers. The Django web development solution will have details related to everything from the assembly line to the purchase. It establishes the credibility of a product and helps build trust amongst customers. In comparison, businesses can easily accredit products to themselves making it easier for customers to pick out fake items.
Supply Chain Accountability
The customer of today holds every brand accountable to their moral and corporate ethics. They verify the integrity of an organization before buying from them. If a brand is open about their supply chain processes they are more likely to gain loyal lifelong customers. Many consumers make their buying choices based on the social and environmental responsibility measures taken by a business. Blockchain provides real-time updates on the supply chain and helps suppliers track their raw materials from beginning to end as well.
Traceability and Transparency
Surveys show that a shopper wants to know everything about the product they are buying down to the tiniest details. They want information on where a particular ingredient is from and what were the factory conditions during manufacturing. With Blockchain, they have access to every stage and can hold companies accountable for their suppliers. The Django web development platform traces a transaction and verify facts for themselves because the data is available to the public. It is easier to check the lifecycle of a product and corporations have no way to corrupt the information.
The Role of Smart Contracts
Smart contracts work just like regular contracts except for the fact there is no need for a third party such as a lawyer, mediator, or judge to enforce it. A smart contract works independently of all concerned parties. Blockchain ensures the contract is upheld and as a result benefits from all protection offered by the Django web development company solution. The process is open, immutable, and comes with time-stamps so neither party can deny their involvement. They can specify their conditions before getting into business and once the party fulfills the clauses, the contract comes into effect automatically.
Many industry sectors have been using smart contracts to handle their business deals. These are a part of Blockchain so they establish the product’s validity and guarantee authenticity to customers. All the information related to the commodity is secure in the Blockchain backed Django web application therefore the contract will take that into consideration. It will not include any information not part of the block. The smart contract can help financial institutions, innovative companies, and other businesses address key challenges. They can automate their workflows, enhance data security and mitigate any transactional costs.