2018/02/25 - 2018/03/25
Online authentication is the only way to ensure authenticity, but the data that resides on the product’s embedded chip can be copied as well. Copies would still point to a valid product entry in the database. In order to solve the problem there must be a way to ensure the data is not duplicable. The blockchain is only one part of the solution. A dynamic chip, one that changes state each time you interact with it, prevents fraudsters from passing off the chip as real because every time an attempt is made to verify it, the data itself changes. The genuine and the counterfeit product will have out of sync information on it, which indicates the product is tampered with.
MAKE IT EASY TO VERIFY
Checking whether a product that you intend to buy is authentic or not should be easy. Consumers cannot be expected to appraise the authenticity of products by looking at minute details and knowing production anomalies. The anticounterfeiting method must be tamper-proof, but it should also be effortless to verify the authenticity. Seal makes it easy for anyone with a smartphone to recognize genuine or fake products.
REMOVE FINANCIAL INCENTIVE
Counterfeiting is driven by financial motives. To stop the cat-and-mouse game between counterfeiters and security specialists, the ability to monetize large-scale counterfeiting must cease. Instead of fortifying the product itself with special markings or hard to counterfeit materials, we embed chips that are authenticated on a blockchain. We bring all these technologies together in the Seal platform.
The way to disrupt counterfeiters is by creating the conditions that will lead brands to adopt Seal. Brands pay millions in brand protection and legal costs each year. Seal turns anti-counterfeiting into a profit center, and turbocharges the platform with a plethora of valuable services. Each time ownership is transferred the brand offsets the cost of the chip and makes a profit. The ability to make a profit over the course of the product’s lifecycle easily justifies the adoption of Seal, while also fortifying themselves against counterfeiters. This model disrupts the counterfeit economy by turning a
cost-center into a profit center.
RESTORE MARKET INTEGRITY
The secondhand market suffers most from counterfeiting because value stores are lucrative counterfeit targets, the size of the market is enormous and it is both easy and low risk to scam regular people. Seal solves this by completely removing ambiguity out of the equation. Not only is checking authenticity foolproof, brands can finally monetize the secondhand market for the very first time in history. This is a major milestone, since many of the world’s value stores have product lifecycles well over 25 years. As the product ages, the value increases and the demand increases. The effect is that products will change hands countless times over the course of its lifecycle, making money for brands along the way. The Seal Network blockchain is what allows the service to operate for such a long time, even though normally brands may go bankrupt or get acquired, technology gets abandoned or products are discontinued. As long as people dedicate nodes to the network, the system will work. Sites like eBay and Amazon will be able to integrate Seal technology so that they can verify high-end products before they get listed. This will be a major boon for consumer confidence in the online secondhand market trade, where millions of trades happen daily and consumers are frequently duped.
chief strategy & technical officer and founder