Proceedings of the 5th International Conference on Smart Systems and Inventive Technology (ICSSIT 2023)

IEEE Xplore Part Number: CFP23P17-ART; ISBN: 978-1-6654-7467-2

Identification of Fake Products using Blockchain

Technology
2023 5th International Conference on Smart Systems and Inventive Technology (ICSSIT) | 978-1-6654-7467-2/23/$31.00 ©2023 IEEE | DOI: 10.1109/ICSSIT55814.2023.10060998

Nongmeikapam Thoiba Singh Saurav Vibhu Sharma

Department of Computer Science Department of Computer Science Department of Computer Science
Engineering, Chandigarh University, Engineering, Chandigarh University, Engineering, Chandigarh University,
Punjab, India Punjab, India
Punjab, India
[email protected] [email protected] [email protected]

Abhishek Raizada Shreya Sharma Nishant Pathak

Department of Computer Science Department of Computer Science Department of Computer Science
Engineering, Chandigarh University, Engineering, Chandigarh University, Engineering, Chandigarh University,
Punjab, India Punjab, India Punjab, India
[email protected] m [email protected] [email protected]

Abstract - Blockchain, which has recently received a lot of avoiding counterfeit goods by confirming the correctness of the
attention, has a wide range of uses. Bitcoin, a widely used product and authenticating actual commodities across the supply
cryptocurrency, employs blockchain technology to authenticate chain. Only a small processing fee is required for businesses to
transactions without relying on a central structure, thereby avoid purchasing counterfeit items. Though it has been
solving the problem of double spending. Consequently, the suggested, phoney goods identification technology needs to be
application that uses blockchain technology as its core ensures improved [5].
the authenticity of the data. The research uses a concept that is
based on the decentralised blockchain to demonstrate that Blockchain is a type of distributed ledger technology. When
customers do not primarily rely on stores to evaluate the a technical advancement is controlled by several parties, such as
legitimacy of products. This study describes a decentralised a secure database, it is said to be decentralised. This innovative
blockchain architecture that is free of counterfeit items so that technique was used for the first time by Bitcoin. Before creating
makers can use it to make real products without having to a new block, the algorithm that manages the blockchain's block
contact merchants directly, which will result in a significant creation process collects and verifies data [6].
reduction in the cost of product quality monitoring.
Blockchain is a decentralised ledger system that keeps track
Keywords–Blockchain, Legitimate, Counterfeit, of information like a secure database that is accessible to many
Decentralised, IoT people at once. Only Bitcoin has ever used this cutting -edge
innovation [7]. Before creating a new block, the Blockchain's
I. INTRODUCTION production algorithm collects and verifies data. First, we'll look
Blockchain is an innovative technology that might at how Bitcoin serves as an example of the Blockchain's
change computing in the future and offer more innovative consensus mechanism. The proof-of-work algorithm is utilised
solutions across several sectors. It can be used just about by the blockchain. The blockchain validates transactions through
any place since it is distributed, immutable, and open. Even a proof-of-work mechanism [8]. In order to solve a difficult
if the technology has many applications outside of banking, mathematical problem that can be verified quickly, each node
the emergence of cryptocurrencies has increased its appeal competes for processing power to solve the problem. Also,
[1]. Multiple cryptographically linked blocks are a rough every node in the network functions as a data repository for the
translation of the term "blockchain". The data, the hash of blockchain and as a hub for communicating with other nodes.
the block before it, and the hash of the data and the An identical set of blockchain records is stored on every node.
preceding hash are the three components that make up a Each node will rely on its own information to verify incoming
block in a data structure [2]. As a consequence, employing transactions [9]. Then, they are added to the next block along
the order of dependence between blocks makes it possible to with an offer for the rights to record the transactions in that
ensure the integrity of the whole blockchain [3]. The hash of block.
a block will change each time its contents change. The spiral Trust, which develops when two parties interact frequently
effect that will follow from this will render the hashes of the with a third party, is the foundation of much economic activity
next blocks incorrect. Transactions on the blockchain cannot in modern society. Due to the low level of trust between the
be altered as a result. parties involved, reliance on third-party assurances of trust is
The sale of counterfeit goods is expanding, which has an common [10]. As a result, it is crucial to zero in on the aspects
impact on the revenue and profits of impacted businesses of blockchain technology that allow it to disrupt the age-old
[4]. This article suggests a blockchain-based technique for basis of financial transactions. With the help of developing

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 Proceedings of the 5th International Conference on Smart Systems and Inventive Technology (ICSSIT 2023)
IEEE Xplore Part Number: CFP23P17-ART; ISBN: 978-1-6654-7467-2

blockchain technology, an individual can create his own Mitsuaki Nakasumi [6] proposed a blockchain-based remedy
decentralised data-recording system without the need for a for supply chain issues such as Double Marginalisation and
middleman [11]. Information Asymmetry. Systems for managing the supply
chain help businesses plan by exchanging, analysing, an d
II. RELATED WORK supporting information. Due to unequal knowledge between
According to Da'u and N. Salim [1], the conventional organisations, which disrupts the planning algorithms, they are
structure of cloud storage is central, and they explain how a not founded on actual facts. On the other side, information
single problem has the potential to put the entire system to a sharing between producers, suppliers, and customers becomes
standstill. IPFS, the blockchain used by Ethereum, attribute- essential to guaranteeing market responsiveness. The problem of
based authentication, and a distributed file system are all double marginalisation in supply chain management is pervasive
elements that have been incorporated into the architecture. and important. Double marginalisation effects are shown to
The problem that cloud servers often produce inaccurate produce supply insufficiencies in decentralisation under
results in conventional storage systems is addressed by the wholesale pricing contracts when both predictable and
decentralised architecture that is built on the ethereum unpredictable demand is present.
blockchain. This design offers a keyword search capability In a recent study, Khalil G. et al. [7] report the use of a
that can be performed on the ciphertext. frequency identification tag in the detection of counterfeit
A framework is proposed by M. Xu and S. Liu [2] to goods. This method uses radio frequency identification tags on
verify the originality of media files before they are made products to conduct a review based on a test topic for counterfeit
available online. Technologies like blockchain and IPFS are goods. While remote sensor networks and radio frequency
used in the framework. The solution relies on the identification (RFID) tags are frequently used in this system for
uniqueness, authenticity, and integrity of digital books, but remote development and offer a range of potential future uses,
the architecture, design, logic, and smart contract code are RFID tags, like actuators, need a control signal and a power
meant to be modified and applied to bring these qualities to source. Instead of employing laser light from verified tags to
all other forms of digital goods. read areas and physical proof of tagged objects, RFID collects
and stores data using low-frequency radio waves. This
S.Paul, J.I.Joy et al. [3] proposed using blockchain technology is used to handle the collection of data in a cellular
technology to provide security information about the food environment or a central warehouse. Before transmitting them to
supply chain, in contrast to the traditional supply chain. By the RFID tag, the transceiver performs a scan of the radio
enabling blockchain to track, monitor, and audit the food waves. After that, the RFID reader sends separate data to a
supply chain as well as help producers properly record microchip that is very small.
transactions, the suggested design addresses the
shortcomings. The suggested strategy has not been tried out III. PROPOSED SYSTEM
in actual operations; it is merely a theoretical idea. Because most consumers purchase from remote locations,
HACCP was used by Li ST et al. [4] to describe the there is a risk of receiving counterfeit or phoney goods. This
functioning of blockchain in the food production chain. The bogus product harms both the client and the company's
method established a state-of-the-art, decentralised tracking reputation. They will suffer significant losses as a result of this
system using IoT and blockchain technologies while also predicament [12]. Before dealing with this issue, there is no
resolving the blockchain's general scalability concerns. correct solution. There is no assurance mechanism or a suitable
When implemented, the customised system would give all technique to detect counterfeit items from genuine ones since
stakeholders in the food production chain access to up -to- barcodes are easily reproduced. Blockchain is the most
the-minute information on product safety. The framework promising developing technology in recent years that can assist
has the potential to greatly improve food supply chain in the resolution of this sort of problem. Blockchain technology
quality and transparency, which in turn could lead to greater may be used to monitor and track transported items, ensuring
food safety and boost consumer trust in the food industry. that users only receive the correct product [13]. The major goal
this study is to increase openness about the goods during client
Using blockchain technology, Si Chen, Rui Shi, et al. [5] purchases and make it easier for customers to determine if the
showed how to increase trust in news spread via social product they were purchasing was authentic or counterfeit.
media. The concept proposed a cutting-edge, decentralised
tracking system that combines social media and block This study uses blockchain technology to identify fake
chains. After that, you can request the user ID. The products. The initial stage is to connect all manufacturers to the
transaction will notify all nodes whenever new data is blockchain network and collect their primary product
generated. The framework will only examine "viral" news information. Product verification is done by signing up and
stories that have attained a predetermined level of attention. giving the right username and password. The main owner of t he
The chain will receive the delivery of information. Initially, item will be the person who made it. The maker will inquire
this news will not have a rating. The ranks of users will be with the management about connecting the product to the
displayed in the news, and the ratings of validators will network, and the manager will provide the maker with the QR
accumulate over time. This rating indicates the code for the product, as depicted in Fig. 1.
dependability and authenticity of the news item.

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 Proceedings of the 5th International Conference on Smart Systems and Inventive Technology (ICSSIT 2023)
IEEE Xplore Part Number: CFP23P17-ART; ISBN: 978-1-6654-7467-2

Fig. 1. Flow of Verification

If the application is from a legitimate manufacturer, the redirect component between the device and the blockchain
regulator will add the product and maker to the network. modules. The blockchain module also provides the twin contract
Once the product is registered on the network, it will and app contract forms of smart contracts. The app contract
generate a smart contract containing the product's unique performs a separate traceability system mechanism, such as the
QR code and encrypted text data. The QR code contains a transfer of ownership between stakeholders, while the twin
copy sensitive digital image to prevent it from being copied contract represents IoT devices [15]. As a result, app contracts
[14]. The manufacturer will then ship the goods to the and twin contracts are capable of direct communication and are
distributor, and the status will be changed to shipment; regarded as reliable oracles for the blockchain system.
ownership will not change until both parties approve a
purchase and sale request for the product. When both parties
agree to a joint venture, ownership in the blockchain
network is instantly transferred in the form of a smart
contract upon receipt of payment. At this point, clients will
be given the android app, and consumers will be able to
scan the QR code assigned to the object using the android
app. The scanner scans the product and uses the specified
method to extract the encrypted text, providing information
about the current maker and owner of the goods and
allowing the user to decide whether or not to purchase the
item.

IV. METHODOLOGY
As depicted in Fig. 2, the traceability system architecture
was envisioned as layered software consisting of three
modules: blockchain, gateway, and device. The device
module first transforms the sensed values for the appropriate Fig. 2. T raceability system architecture
smart contract into blockchain transactions. In order to
provide the necessary network connectivity, the gateway The details of each module's implementation are provided in
module thus functions as a straightforward and transparent the paragraphs that follow, as shown in Fig. 3.

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 Proceedings of the 5th International Conference on Smart Systems and Inventive Technology (ICSSIT 2023)
IEEE Xplore Part Number: CFP23P17-ART; ISBN: 978-1-6654-7467-2

Fig. 3. Schematic representation of the blockchain system

V. RESULTS AND DISCUSSIONS items without relying on any centralised method or person.
Further assessments will be required to ascertain the precise
Following the rapid growth of online trading apps, consequences of the system. However, the fate of the system
several studies have been done with the goal of spotting may depend mostly on beginning a blockchain and writing data
bogus items. The suggested solution demonstrates how into a block that may be reviewed or extracted over an extended
blockchain technology may be efficiently used to limit period of time [16].
counterfeit items that circulate in the outside world and
harm a company's reputation among consumers. By As the value of cryptocurrencies and other blockchain-based
implementing this, we believe if human errors are neglected, NFTs rapidly rises, the cost of beginning each block will be
we can bring down the distribution of counterfeit items to determined entirely by its individual rate, and this will have a
nearly 0%, which is 3.3% according to current World Trade significant impact on the block's design. As a result, we need a
Reports. The goal is for anybody to identify counterfeit system where the price of the blockchain doesn't change the

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 Proceedings of the 5th International Conference on Smart Systems and Inventive Technology (ICSSIT 2023)
IEEE Xplore Part Number: CFP23P17-ART; ISBN: 978-1-6654-7467-2

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