The European Union (EU) is working on a project involving blockchain architecture and the use of non-fungible tokens (NFTs) to combat counterfeiting and tampering. The project is the product of several meetings organized by the European Union Intellectual Property Office and aims to create digital twins of products to trace their path through the supply lines.
The European Union will use NFTs to protect intellectual property
The European Union recently announced that it is working on a system that will use blockchain and NFT as part of its fight against counterfeiting of physical goods.
The proposed system will be designed by the European Union Intellectual Property Office and is the result of over five years of work. A paper published this month explains that the organization has already chosen an architecture for this task and provides general information on how the system works.
Intellectual Property (IP) holders will create digital tokens to prove that a group of manufactured goods are genuine. These intellectual property owners will need to be included as pre-approved signatories to create these products on the tracking blockchain.
The solution will then follow the supply chain as products pass through various checkpoints, allowing intellectual property owners to be confident that products arriving in stores are genuine.
The European Union Intellectual Property Office hopes to have a functioning system by the end of 2023, but to achieve this it will need to create a registry system to bring together all intellectual property rights holders, logistics operations and retailers in the EU. To better achieve its goal, the report says the system will seek to be interoperable with existing supply chain tracking solutions.
If the European Union manages to implement this system by the end of 2023, it will be one of the first applications of blockchain technology on this scale for the purpose. However, blockchain technology has also been used to trace supply lines earlier. Recently, Vechain, a corporate blockchain project, announced a supply chain tracking system in partnership with Orionone, a global supply chain technology solution, with the aim of integrating blockchain into its working technologies.
The European Union is also discussing MiCA, a Union-wide law proposal to regulate cryptocurrencies.