According to the 2020 Gustavson Brand Trust Index, levels of consumer trust in today’s brands have reached an all-time low. At the same time, over 90% of customers report “authenticity” as the main factor affecting their buying decision-making process.
So, in today’s fast-changing environment, it is crucial for brands in all industries to focus on delivering high levels of product and brand authenticity. But can this be done effectively while the global supply chain continues to expand and grow more complex?
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New blockchain-based technologies such as NFC labels can help brands access and deliver real-time, accurate, and truthful information, which can help consumers verify authenticity claims and brand statements.
In this guide, you can better understand how blockchain-based NFC technologies play an increasingly important role in securing and authenticating products through their journey from the manufacturer to the consumer.
What Is NFC Technology?
NFC – or Near-Field Communication – technologies are an emerging solution that is already being successfully adopted in a wide range of markets and industries.
Today, one of the most well-known applications of NFC technologies is in the fields of contactless payments and financial transactions. NFC crypto payments are also becoming increasingly popular.
In particular, thanks to their unique features, NFC technologies can efficiently be used in product authentication to prevent tampering and fraud attempts.
This two-part system enables the exchange of information between the NFC tag and an enabled reading device (i.e.: any modern smartphone).
Some of the key features of the NFC communication protocol include:
- The information exchanged is encrypted
- Information is exchanged at a short range, usually 4cm
- NFC tags are tamper-proof and almost impossible to forge
- A product-altering attempt makes the NFC label impossible to use, thus helping manufacturers detect threats.
NFC And Blockchain Technologies: How Smart Packaging Is Powering The Next Era of Product Authenticity
When working with a product authentication specialist, you’ll be able to implement an NFC-based product authentication system by leveraging the unique features of this technology.
Here’s how it works.
NFC-embedded labels and smart packaging solutions help create a digital twin of the product itself.
When the label is scanned by enabled devices, each product’s transaction is recorded in the blockchain, thus creating an immutable and impossible to alter trail of information about the product’s journey to the consumer.
Both manufacturers and consumers can then access this information simply by scanning the NFC label through ad hoc devices and smartphones.
A product authenticity expert can help you understand how to incorporate NFC labels, blockchain-based technologies, and NFT digital twins into your product authentication strategy.
The Benefits of Boosting Product Authenticity Through NFC Solutions
NFC labels and blockchain-based are rapidly growing in popularity, and new uses for these technologies are found every day. Here are just some of the unique benefits of implementing blockchain-backed NFC solutions.
Tamper-Proof Physical-Digital Seals
NFC labels and tags act as “physical-digital seals” for your products throughout their journey through the supply chain. Once the NFC tag is incorporated into the product’s packaging, opening and tampering attempts can be easily detected and prevented.
Real-Time Data and Information
NFC labels can be scanned by any smartphone and allow for the fast and efficient exchange of information.
Thanks to their ability to deliver real-time, accurate information about a product’s status and location, NFC-enhanced packaging represents an efficient solution for companies looking to gain greater visibility into their supply chain.
Secure Exchange of Data
Since the information carried by NFC is exchanged in an encrypted way, immediately, and at a short distance of around 4 cm, these systems leave little room for data breach attempts.
What’s more, each product transaction is automatically recorded in the blockchain, which creates immutable records immune to tampering and fraud.
User-Friendly Data Interfaces – For Manufacturers and Consumers
NFC labels play a crucial role in helping manufacturers guarantee product authenticity – and in ensuring that consumers can confirm the claims a brand has made.
This system can prevent counterfeiting and help consumers make informed choices about the products they are buying, but they also help producers ensure that no counterfeit attempts and fraudulent activities take place across the supply chain.
Partnering With a Blockchain and NFC Product Authentication Specialist
While blockchain-based NFC solutions represent an efficient solution for most companies, they might not be the best option for all organizations.
Partnering with a product authentication specialist can help you understand what technologies to invest in to ensure a streamlined product authentication strategy that works for both your team and your customers.
