© May 2024| IJIRT | Volume 10 Issue 12 | ISSN: 2349-6002

Detection of counterfeit products using Block chain

Technology

Mrs.S.Kavitha, AkshaiKumar.T.N, Chandru.K, Danush.S

Assistant Professor, Students, Department of Computer Science and Engineering
Vel Tech High Tech Dr.RangarajanDr.Sakunthala Engineering College ,Avadi

Abstract- Issues like inadequate departmental
coordination, service redundancy, and a lack of
standardization resulting from a lack of transparency were
frequently faced by supply chain management. Because
product counterfeiting is so common these days, it is
practically hard to spot a counterfeit item just by looking
at it. Counterfeiters are a major obstacle for legitimate
firms, despite the fact that far too many people are
ignorant of the complete impact that counterfeit items have
on enterprises. Several approaches have been used in the
past to address the problem of product counterfeiting. The
most popular methods include using AI, QR code-based
systems, RFID tags, and other methods. Every one of these
has a few limitations, though: artificial intelligence
necessitates CNN and machine learning, which demand a
lot of computing power; a fake product can use a fake QR
code, and so on. The objective is to improve the detection
of fake products by tracking their previous supply chain.
Genuine product identity and supply chain traceability are
ensured by blockchain technology. A blockchain-based
system is decentralized since multiple parties can access
everything at once. One of its main advantages is that the
recorded data is difficult to change without the consent of
all persons involved, making it extremely safe and secure
from any flaws.
INTRODUCTION
Risk concerns, like as copying and replication, are
invariably present when a technology or product is
created internationally. These dangers may affect a
business's revenues, standing with the public, and level
of customer happiness. There are an enormous number
of products in the supply chain to confirm whether the
item is real or fake[1]. The primary problem is that
producers are suffering large losses as a result of
counterfeit goods. The product's validity can be
confirmed using blockchain technology [3]. Blockchain
is a data recording technology that makes it challenging
to modify, breach, or control the system. A blockchain
is essentially a distributed electronic ledger of
transactions that is replicated across the network of PCs
on the blockchain[6].Every block in the chain contains
many transactions, and every time a new transaction
occurs on the blockchain, a record of that Every block in
the chain contains many transactions, and every time a
new transaction occurs on the blockchain, a record of
that transaction is added to each participant's record [1].
The decentralized database that is governed by the
quantity of members is known as distributed ledger
technology (DLT). In blockchain technology, a type of
distributed ledger technology, transactions are recorded
using hashes, which are unchangeable cryptographic
signatures [5]. The problem of product counterfeiting
can be resolved with the use of blockchain technology.
Blockchain technology provides more security. Once a
product is saved on the network, a chain of transactions
for that product will form, allowing all transaction
records pertaining to that product and its current owner
to be maintained up to date. This hash code is generated
once the product is stored. Every transaction record will
be stored as blocks on the blockchain. The proposed
method allows the end user to receive detailed product
information by simply scanning a generated QR code
linked to a particular product [8].
By scanning a product's QR code, we may ascertain
whether it is authentic or fake. Because it offers a
decentralized, transparent, and secure way to record data
and transactions, blockchain technology is
revolutionizing a number of sectors [5]. Each block in a
blockchain contains a timestamp, transaction data, and a
cryptographic hash of the block before it. This results in
a chain of blocks that is unchangeable and impenetrable.
One of the primary characteristics of blockchain is its
decentralized nature [18]. Blockchain transactions are
not dependent on a single central authority, but rather
are peer-to-peer validated by a network of nodes
(computers). This makes blockchain resistant to fraud
and censorship because changing one block would

IJIRT 164322 INTERNATIONAL JOURNAL OF INNOVATIVE RESEARCH IN TECHNOLOGY1331

 © May 2024| IJIRT | Volume 10 Issue 12 | ISSN: 2349-6002
require altering every subsequent block on every copy
of the ledger throughout the network. Blockchain
technology has much more applications than just virtual
currency like Bitcoin.It can make supply chain
management easier by providing a visible and traceable
record of the items from manufacturer to customer [17].
By safely storing and exchanging medical records,
blockchain protects data integrity and privacy in the
healthcare sector[16].
Additionally, it can make digital voting safe and
transparent, which will improve voting processes [0].
Through the use of public and private keys, blockchain
has proven to be consistent, which helps with
commitment, integrity, and privacy to some level.
Because blockchain technology is secure, no block can
be changed or manipulated. Blockchain technology is
more than simply virtual currency; it has many
applications in government, banking and finance,
accounting, and corporate operations. Consumers or
users who make use of blockchain technology can
independently confirm a product's security without
depending on a third party. On the blockchain,
information collected by WSNs keeping an eye on the
electrical distribution grid is kept. It uses data stored in
a blockchain, created by a directed acyclic graph (DAG).
A merging procedure that took into account non-
technical losses was created in order to assess fraud. The
process of using blockchain technology to identify
counterfeit goods is called "fake product detection."
Blockchain is a decentralized, immutable digital record
that provides transparency and security for transactions.
Businesses can employ blockchain technology to ensure
the authenticity of their products, giving customers
peace of mind about the items' veracity. It tracks the
product's journey through the supply chain and creates
an electronic history of where it came from. Every
transaction involving the product is recorded on the
blockchain, creating an unalterable and transparent
history of the product.
RELATED WORKS
Si Chen and Rui Shi [1]:"A Blockchain-based Supply
Chain Quality Management Framework". In this work,
we describe a blockchain-based system. This framework
will provide a theoretical basis for intelligent,
blockchain-powered supply chain quality management.
Additionally, it provides a foundation for the theoretical
advancement of theories related to information resource
IJIRT 164322 INTERNATIONAL JOURNAL OF INNOVATIVE RESEARCH IN TECHNOLOGY1332
management in virtual, distributed businesses [1]. by
Marko Steven [21].In the wine industry, smart tags are
used for anti-counterfeiting and brand protection. This
article offers a smart tag-based, cloud-enabled solution
for brand protection and anti-counterfeiting in the wine
business. The fundamental idea underlying smart tags is
two-way communication between the vineyard and the
end-user, quick response codes, and functional inks
made possible by the Cloud system [21]. R. Jayavadivel
and Prabhu Shankar [16].
The amount of fake items that are sold on the black
market and via the internet is growing rapidly.
Consequently, in order to improve detection precision,
it is critical to address the challenges associated with
recognizing counterfeit items and to create appropriate
technology. This is one of the current research issues
being looked into in the modern world. This essay
discusses many techniques for identifying counterfeit
goods[16]. The article by Tejaswini, Tambe, Sonali
Chitalkar, Manali Khurud, Madhavi Varpe, and S.Y.
Raut describes how products using QR codes can be
distinguished from fakes. There are two primary uses for
it. One is for the manufacturer to check all orders, create
a QR code, and submit all product details.The system
makes use of the SHA-256 method to obtain a constant
hash value of 256 bits, Android Studio to construct the
application, and Firebase cloud database to store all
product details, hash values, and block names [7].
After obtaining the user's unique code, they compare it
to records in the Blockchain database. Customers will
receive notification that the goods is authentic if the
code matches; if not, they will receive notification that
the product is counterfeit[5]. With the help of
blockchain technology, customers may independently
confirm the legitimacy of a product, which benefits both
the product's owner and them. Blockchain technology is
a distributed, decentralized ledger that is connected by
chains and stores all transactional data in the form of
immutable, extremely secure blocks [6]. The system will
insert the new block into a chain after the majority of
your peers have approved it. Many researchers are
examining the use of suitable technology for tracking
systems in food supply chains due to the internet of
things' explosive growth. According to Folinas et al. [9],
a tracking system's effectiveness is dependent on its
capacity to trace and track every product and
transportation unit in a way that permits ongoing
observation from the point of basic manufacture to the
consumer's eventual disposal.
 © May 2024| IJIRT | Volume 10 Issue 12 | ISSN: 2349-6002
An RFID-based framework for tracking beef from farm
to slaughter was developed by Shanahan et al. [10]. The
concept has been offered as a solution for access to
tracking records and fraudulent actions, utilizing RFID
tagging for individual cattle identification. Abad et al.
[11] attempted to validate an intelligent RFID tag
designed for real-time tracking and monitoring of cold
food chains under the chain study of intercontinental
fresh fish logistics in order to create an automated
system that combines online tracking data and chill
chain status monitoring information. In order to track
wine bottles in a supermarket, Matholi et al. (2010) [12]
designed a Flexible Tag Data-logger (FTD) that is
connected to bottles and collects environmental data,
such as light, humidity, and temperature.
METHODOLOGY
The creation of a blockchain-based program that can be
used to identify counterfeit goods is one way to solve
this issue [12]. This section gives a quick rundown of the
system's architecture along with an explanation of its
purpose and user interface [1]. This technology
determines whether a product is real or phony by using
a decentralized application built on a block chain. The
manufacturer, seller, and customer phases make up the
three stages of the proposed system:[3]. Smart contracts
will be used to store all of the product details that are
kept by the manufacturer. The self-executing programs
known as smart contracts are launched at the time a
block chain transaction occurs. If and then phrases are
used in the predefined rules that power smart contracts
[3]. Without requiring any external commands, the
software runs automatically as soon as the rules' criteria
are met. Solidity, a programming language related to
JavaScript, is used to generate these smart contracts. The
IDE used to execute these mart contracts is called
Remix[16].To preserve data integrity and traceability,
make sure that every event is time stamped,
authenticated, and cryptographically secured[14].The
product is verified as authentic if the data matches and
passes validation checks (such as digital signatures and
authenticity proofs). If not, it is marked as possibly
being fake [25].
IJIRT 164322 INTERNATIONAL JOURNAL OF INNOVATIVE RESEARCH IN TECHNOLOGY1333
FIGURE1:Blockchain-Powered Anti-Counterfeiting
1)Blockchain Network
This is the underlying blockchain infrastructure
consisting of multiple nodes (computers) connected in a
peer-to-peer network. Nodes can be divided into
different categories such as miners, validators, and
users, each performing specific functions within the
network.
2) Smart Contracts
Self-executing contracts with preprogrammed rules and
conditions are known as smart contracts. Smart contracts
control the development, transfer, and verification of
digital product IDs in the context of counterfeit product
identification.
3) Product Manufacturer
The manufacturer of the product interacts with the
blockchain network to register each product's digital
identity. Information such as product specifications,
batch numbers, production dates, and supply chain
details are recorded on the blockchain through smart
contracts.
4) Supply Chain Integration
The blockchain network integrates a number of supply
chain participants, such as distributors, retailers, and
suppliers. The product's digital identity is enhanced at
each level of the supply chain, resulting in a clear and
verifiable record of the product's travels.
5) Blockchain Explorer
A user-friendly tool or interface that lets users view and
interact with blockchain data is called a blockchain
explorer. By querying the product's digital identity
stored on the blockchain, consumers and other
authorized parties can use the blockchain explorer to
confirm the legitimacy of a product.
6) Consumer Application
A dedicated application or interface accessible to
consumers for verifying product authenticity.
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Consumers can scan product QR codes or input product
details into the application, which then retrieves and
validates the product's digital identity from the
blockchain.
7) Verification Process
The verification process involves comparing the
information retrieved from the blockchain with the
product's physical attributes and accompanying
documentation. If the information matches and no
discrepancies are found, the product is deemed
authentic. Otherwise, it may be flagged as potentially
counterfeit.
The manufacturer of the product interacts with the
blockchain network to register each product's digital
identity.
Information such as product specifications, batch
numbers, production dates, and supply chain details are
recorded on the blockchain through smart contracts.
8)Supply Chain Integration
The blockchain network integrates a number of supply
chain participants, such as distributors, retailers, and
suppliers. The product's digital identity is enhanced at
each level of the supply chain, resulting in a clear and
verifiable record of the product's travels.
9)Consumer Application
A dedicated application or interface accessible to
consumers for verifying product authenticity.
Consumers can scan product QR codes or input product
details into the application, which then retrieves and
validates the product's digital identity from the
blockchain.
10)Verification Process
The verification process involves comparing the
information retrieved from the blockchain with the
product's physical attributes and accompanying
documentation. If the information matches and no
discrepancies are found, the product is deemed
authentic. Otherwise, it may be flagged as potentially
counterfeit.
This is the initial step in the process of creating a
product. Login Page: The manufacturer logs into a
system, presumably to register the product. Registration
Page: After logging in, the manufacturer registers the
product details. Product Details Retained in a database:
All of the product's data is stored in a centralized
database. Blockchain-Based QR Code Generation: A
QR code linked to the blockchain is connected to the
goods. This QR code serves as the product's unique
identifier. In order to get another block (node), a block
IJIRT 164322 INTERNATIONAL JOURNAL OF INNOVATIVE RESEARCH IN TECHNOLOGY1334
(node) joined the blockchain: Information about the
product is added to the blockchain as a new block that is
connected to the earlier block chain. This ensures that
the product's information is secure and immutable.
ALGORITHM:
importhashlib
def sha256(message):
# Convert the message to bytes
ifisinstance(message, str):
message = message.encode()
# Initialize hash values (first 32 bits of the fractional
parts of the square roots of the first 8 primes)
h0 = 0x6a09e66
h1 = 0xbb67ae85
h2 = 0x3c6ef372
h3 = 0xa54ff53a
h4 = 0x510e527f
h5 = 0x9b05688c
h6 = 0x1f83d9ab
h7 = 0x5be0cd19
# Initialize round constants (first 32 bits of the fractional
parts of the cube roots of the first 64 primes)
k=[
0x428a2f98, 0x71374491, 0xb5c0fbcf, 0xe9b5dba5,
0x3956c25b, 0x59f111f1, 0x923f82a4, 0xab1c5ed5,
0xd807aa98, 0x12835b01, 0x243185be, 0x550c7dc3,
0x72be5d74, 0x80deb1fe, 0x9bdc06a7, 0xc19bf174,
0xe49b69c1, 0xefbe4786, 0x0fc19dc6, 0x240ca1cc,
0x2de92c6f, 0x4a7484aa, 0x5cb0a9dc, 0x76f988da,
0x983e5152, 0xa831c66d, 0xb00327c8, 0xbf597fc7,
0xc6e00bf3, 0xd5a79147, 0x06ca6351, 0x14292967,
0x27b70a85, 0x2e1b2138, 0x4d2c6dfc, 0x53380d13,
0x650a7354, 0x766a0abb, 0x81c2c92e, 0x92722c85,
0xa2bfe8a1, 0xa81a664b, 0xc24b8b70, 0xc76c51a3,
0xd192e819, 0xd6990624, 0xf40e3585, 0x106aa070,
0x19a4c116, 0x1e376c08, 0x2748774c, 0x34b0bcb5,
0x391c0cb3, 0x4ed8aa4a, 0x5b9cca4f, 0x682e6ff3,
0x748f82ee, 0x78a5636f, 0x84c87814, 0x8cc70208,
0x90befffa, 0xa4506ceb, 0xbef9a3f7, 0xc67178f2
]
# Pre-processing (padding)
original_length = len(message) * 8
message += b'\x80'
while (len(message) * 8) % 512 != 448:
message += b'\x00'
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message += original_length.to_bytes(8, 'big') h6 = (h6 + g) % (2**32)

h7 = (h7 + h) % (2**32)
# Process the message in 512-bit blocks
forchunk_start in range(0, len(message), 64): # Concatenate hash values to get the final hash
chunk = message[chunk_start:chunk_start+64] hash_result = (h0 << 224) | (h1 << 192) | (h2 << 160)
w = [0] * 64 Introduction to SHA-256: A particular kind of
cryptographic hash function called SHA-256 takes any
# Break chunk into 16 32-bit words size of input data and outputs a fixed-size hash (256
for i in range(16): bits). It is extensively employed in many different
w[i] = int.from_bytes(chunk[i*4:i*4+4], 'big') cryptography applications, such as blockchain
technology.
# Extend the first 16 words into the remaining 48 Initialization Vector (IV): The process starts with an
words Initialization Vector (IV), which is a 256-bit constant
for i in range(16, 64): value. This IV is used as part of the initial setup for the
s0 = (w[i-15] >> 7 | w[i-15] << 25) ^ (w[i-15] >> algorithm.
18 | w[i-15] << 14) ^ (w[i-15] >> 3) Data Processing: It's possible that input data won't
s1 = (w[i-2] >> 17 | w[i-2] << 15) ^ (w[i-2] >> always be a perfect multiple of 512 bits, which is the
19 | w[i-2] << 13) ^ (w[i-2] >> 10) SHA-256 block size. Thus, the data is divided into 512-
w[i] = (w[i-16] + s0 + w[i-7] + s1) % (2**32) bit blocks.
Padding: The final block of input data is padded with
# Initialize hash value for this chunk extra bits to make it a complete block if it is not precisely
a, b, c, d, e, f, g, h = h0, h1, h2, h3, h4, h5, h6, h7 512 bits. This padding usually consists of adding one '1'
bit and then as many '0' bits as required.
# Main loop Compression Function: Each 512-bit block of data,
for i in range(64): along with the IV, is processed through a compression
s1 = (e >> 6 | e << 26) ^ (e >> 11 | e << 21) ^ function. This function combines the input data with the
(e >> 25 | e << 7) IV to produce a 256-bit output.
ch = (e & f) ^ (~e & g) Chaining: The output of the compression function is
temp1 = (h + s1 + ch + k[i] + w[i]) % (2**32) then merged with the next 512 bits of input data. This
s0 = (a >> 2 | a << 30) ^ (a >> 13 | a << 19) ^ process continues until all input blocks have been
(a >> 22 | a << processed.
maj = (a & b) ^ (a & c) ^ (b & c) Final Compression: Once all input blocks have been
temp2 = (s0 + maj) % (2**32) processed, a final compression function is applied to the
last block, producing the final 256-bit hash value
h=g
g=f EVALUATION AND RESULT
f=e
e = (d + temp1) % (2**32) Reduced Counterfeiting: The use of blockchain-based
d=c false product identification reduces counterfeit instances
c=b significantly because stakeholders and customers can
b=a quickly confirm the authenticity of the product.
a = (temp1 + temp2) % (2**32) Enhanced Trust: Consumers gain confidence in the
# Update hash values for this chunk authenticity of products, leading to increased trust in the
h0 = (h0 + a) % (2**32) brand and higher customer satisfaction.
h1 = (h1 + b) % (2**32) Enhanced Supply Chain Transparency: Real-time access
h2 = (h2 + c) % (2**32) to product information and supply chain events is
h3 = (h3 + d) % (2**32) provided to stakeholders by the transparent and
h4 = (h4 + e) % (2**32) immutable nature of blockchain technology.
h5 = (h5 + f) % (2**32)

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 © May 2024| IJIRT | Volume 10 Issue 12 | ISSN: 2349-6002
Cost Savings: Over time, the reduction in counterfeit
products and improved supply chain efficiency can
result in cost savings for businesses, such as reduced
losses from counterfeit-related legal actions and
improved inventory management.
Technical Aspects of Implementing Blockchain
Technology: Nodes, consensus methods (such as proof
of work and proof of stake), and smart contracts are the
technical elements of a blockchain-based product
identification system. Product identification-related
blockchain transaction data structure and format.
Blockchain systems use security mechanisms (such
encryption and cryptographic hashing) to safeguard
product data.
Consumer Trust and Confidence: The importance of
consumer trust in product authenticity and brand
reputation. How blockchain-based product
identification systems enhance consumer confidence
through transparency and verification mechanisms.
Case studies or examples showcasing increased trust and
positive consumer experiences with blockchain-verified
products.
Supply Chain Transparency: The contribution of
blockchain technology to increased supply chain
visibility and transparency. advantages of product
traceability and real-time tracking across the supply
chain. Applications of blockchain in supply chain
management include inventory control, product
verification, and anti-counterfeiting measures.
Regulatory Compliance and Standards: Regulatory
requirements and standards related to product
authentication and anti-counterfeiting (e.g., FDA
regulations, ISO standards). How blockchain-based
product identification systems can help businesses meet
regulatory compliance and certification requirements.
Collaboration with regulatory bodies and industry
organizations to establish best practices for blockchain
implementation in product identification.
Cost Savings and Business Impact: Financial
advantages of putting in place blockchain-based systems
for identifying counterfeit goods, such as lower losses
from counterfeiting and lower supply chain expenses.
Adoption of blockchain leads to increased customer
happiness, inventory control, and operational efficiency.
IJIRT 164322 INTERNATIONAL JOURNAL OF INNOVATIVE RESEARCH IN TECHNOLOGY1336
Business case studies and ROI analyses demonstrating
the benefits of blockchain technology for enterprises.
Future Trends and Innovations: Emerging technologies
and trends in blockchain-based product identification
(e.g., Internet of Things integration, machine learning
for fraud detection).
Using blockchain technology to implement false
product identification provides a strong defense against
counterfeit goods in a variety of businesses. Businesses
may establish a transparent and secure ecosystem where
product authenticity can be confidently verified by
utilizing blockchain's decentralized and immutable
ledger. The foundation for a successful deployment is
the previously described approach, which includes
supply chain integration, consumer applications, smart
contracts, and a verification mechanism. But it's
important to remember that long-term success requires
constant observation, constant development, and
adjustment to changing regulatory and technical
environments. In summary, blockchain-based fake
product identification not only shields customers from
fraudulent goods but also improves brand recognition,
builds confidence, and stimulates supply chain
management innovation. It is a critical step toward
creating a more safe and reliable marketplace for
companies and customers alike.
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