As part of its efforts to combat counterfeiting of real-world goods, the European Union (EU) has revealed that it is developing a strategy that would use block chain technology and non-fungible tokens (NFT).
The European Union Intellectual Property Office will be in charge of designing the proposed system, which is the culmination of almost five years of work.
in a document which was released in early September, the group states that they have already decided on a high-level architecture for this project, and outlines how the system would work.
Intellectual property (IP) owners will issue digital tokens (twin NFTs) to prove that a set of manufactured products is genuine. In order to build these elements on the tracking blockchain, the holders of these intellectual property rights will first need to be incorporated as authorized signatories.
Supply chain tracking system
Therefore, the system will allow the supply chain to be traced as items move through the various checkpoints, allowing intellectual property owners to be sure that products sold in stores they are authentic.
The goal of the European Union Intellectual Property Office is to have a system that is operational by the end of 2023. However, to achieve this goal, the EUIPO will need to develop a registration system that brings together all intellectual property. holders, logistics operations and retailers in the EU. According to the study, for the system to better achieve its goal, it will strive to be compatible with other supply chain monitoring technologies that already exist.
If the European Union manages to implement this system before the end of the year 2023, it will be one of the first deployments of blockchain technology on that scale in order to achieve the goal. Although, blockchain technology has also been used to monitor supply lines in the past.
VeChain cryptocurrency used for supply chain management
Recently, a blockchain enterprise project known as VeChain (VET) made an announcement about a relationship with Orionone, a global supply chain technology solution. The purpose of this cooperation is to integrate blockchain technology into Vechain’s existing technology stack.
Meanwhile, last year, electrical components giant Schneider Electric selected the blockchain platform focused on supply chain management. VeChain as a partner of your ecosystem.