European Union (EU) officials have revealed they are developing a plan to combat the counterfeiting of real-world goods using blockchain technology and non-fungible tokens(NFTs).
[EU proposes to use blockchain and NFT to combat counterfeit goods by 2023] Golden Finance reports that the EU has recently announced that it is developing a system that will use blockchain and NFT as part of its fight against counterfeit physical goods.
— july (@July11241) September 9, 2022
Over five years of work have gone into developing the system that will be designed by the European Union’s Intellectual Property Office.
A paper published at the beginning of September describes the basic outline of how the system will operate. The organization claims to have already selected a high-level architecture for the project.
How Will This Work?
In order to validate the authenticity of a batch of produced goods, digital tokens (twin NFTs) will be issued by IP owners. To establish these objects on the tracking blockchain, the owners of these intellectual property rights must first be authorized signatories.
By tracking the supply chain as goods are transferred through the various checkpoints, the system will enable intellectual property owners to be confident that their products are genuine.
The EU proposes to use blockchain and NFTs to fight counterfeit goods in 2023. #GameFi #NFT #nftart #NFTs #NFTCommunity #DeFi #Cryptocurrency #BTC #ETH pic.twitter.com/IExAGn4eU9
— Ocean Games Guild (@ocean_guild) September 9, 2022
An operating system should be available at the European Union Intellectual Property Office by the end of 2023. To achieve this objective, the EUIPO will need to establish a registration system that compiles a comprehensive list of EU merchants, logistics providers, and intellectual property owners. Furthermore, to achieve its purpose better, the system will attempt to integrate with existing supply chain monitoring technologies currently in use.
If the European Union successfully implements this system by the end of 2023, it would be one of the first large-scale deployments of blockchain technology to accomplish the aim. However, it is important to note that blockchain technology has also been used in the past to monitor supply chains. Additionally, MiCA, a proposed rule that would regulate cryptocurrencies on a union-wide basis, is now being discussed by the European Union.