A Decentralized Framework for Secure Product Authentication and Traceability in Supply Chains
Mrs. K. Krishna Veni 1, Mrs. Sindhu . N 2
1 Assistant Professor, Department of Computer Science and Application
2 Assistant Professor, Department of Commerce and Management
SEA College of Science, Commerce, and Arts, Bangalore
1 krishnakavirk@gmail.com
2 sindhunyadav@gmail.com
Abstract
Counterfeit and stolen goods seriously threaten the reliability of modern supply chains. They affect consumer trust, brand reputation, and economic stability. To tackle this issue, this paper presents a blockchain-based smart supply chain framework. It combines Non-Fungible Tokens (NFTs) with dual-layer Anti-counterfeiting mechanisms such as RFID tags and holographic labels [2], [6]. Each physical product connects to a unique NFT, creating a secure digital twin on a private blockchain network [3], [8]. This setup ensures traceability, verifies authenticity, and keeps transaction records safe from tampering [1], [5]..
The proposed system includes a new Supply Chain Consensus (SCC) algorithm, designed specifically for supply chains. It classifies nodes by trust and stake to allow for efficient and scalable transaction validation. Also, a collateral-based incentive mechanism encourages honest participation among all involved, including manufacturers, transporters, buyers, and arbitrators [7]. Furthermore, a decentralized dispute resolution model features a transparent voting process that ensures fairness and accountability during conflicts [8].
A conceptual framework and simulation-based analysis were carried out to assess the system's performance in terms of transaction efficiency, security, and counterfeit reduction [1], [5]. The findings show that this approach significantly boosts supply chain transparency, lowers verification costs, and improves product authentication compared to traditional centralized systems [4]. This framework provides a scalable and secure solution for the next generation of supply chains, particularly in sectors like pharmaceuticals, luxury goods, and electronics.
Keywords: Blockchain, Smart Supply Chain, Non-Fungible Tokens (NFTs), Anti-Counterfeiting, Digital Twin, RFID, Smart Contracts, Supply Chain Security.
