NFT-based authentic product verification and trading platform

Abstract

Counterfeit product has been a major problem to the economy for a while. The effect seems to be larger when it comes to the luxury product segment. When the consumers were unsure if the product that they are buying is genuine or not and its cost is very high, then the severity will become even greater.

Among the countless number of attempts to fix this solution, utilizing blockchain technology is one of the most popular approaches for present days. In anti-counterfeit domain, associating an NFT token to a physical product is the most common approach. It allows us to unlock the ability to track and trace the trades and the transfers of the product to the public. However, current systems could not fully prevent the problem from happening. To address this problem further, this research proposes a system that is not only able to mint an NFT token for a product, but also fully support the product trade process. This system also adds a warranty agreement burden to the seller, so that it will create risk factor for criminals. The proposed system was experimented with 2 main use cases which leads to the conclusion that, this system is capable of supporting both business-to-customer and customer-to-customer trades. Lastly, this research conducted a cost analysis, to understand the additional cost that the system caused and discussed some alternative blockchain networks that could minimize the cost.