In the modern era of e-commerce, the problem of fake products is prevalent, and it poses significant risks to both consumers and manufacturers. However, digital identities can play a crucial role in detecting and preventing fake products from entering the market.
Digital identities provide a secure and reliable means to validate the origin and ownership of a product. Manufacturers can establish a verifiable record of a product’s validity by registering it with a digital identity.
As technology makes it easier to trace and confirm the authenticity of products, this record can aid in preventing the entry of counterfeit goods onto the market. The movement of goods through the supply chain, from the manufacturer to the final consumer, can also be tracked using digital identities.
This increases visibility and openness throughout the whole supply chain, enabling more effective tracking and management of the product’s journey. In turn, since any irregularities in the supply chain may be found and looked into, this can aid in preventing the entry of fake goods onto the market.
Continuing the example of fake medicines, let’s understand how digital identities can be used in the healthcare industry. For instance, for each batch of medication they generate, pharmaceutical firms can construct digital identities that include details such as the producer, the date of production and the specific serial number of the medication.
A blockchain could be used to store this digital identity, establishing an unchangeable and impenetrable record of the medicine’s validity. Decentralized storage allows users to store their own credentials on their devices, giving them full control and making their identities self-sovereign. This allows for greater interoperability and protection against being locked into a single platform.
Before distributing medication to patients, pharmacies, hospitals and other supply chain distributors could use digital identification to confirm the medicine’s legitimacy. This may aid in preventing the distribution of bogus medications that might be harmful to patients. Digital identities can also be used to monitor and manage the flow of pharmaceuticals more efficiently by tracking them as they move through the supply chain.
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