Blockchain smart tags help sneaker manufacturers fight counterfeits

A sneaker manufacturer has used blockchain technology to create a smart tag that can be traced back to the factory where the sneakers were made, making it impossible for other manufacturers to produce counterfeits.

The company, called Greats, received a software authentication system service and a 3D printer to design smart labels that contain an NFC chip that can be scanned with a smartphone.

This smart label records the entire process of a sports shoe production.

A way to fight counterfeiters

The technology offers an effective way to combat the $600 billion fashion industry that is rife with counterfeits.

According to U.S. Customs statistics, about 40% of counterfeit goods are sports shoes, which causes trouble to sports shoe manufacturers worth about $240 billion.

This system can protect the original design from being copied, and prevent copycats from stealing the original design's sales.

Even if a design is licensed to a manufacturer for mass production, it is inevitable that it will be copied by counterfeit factories. The counterfeits are sold at a low price because the counterfeit manufacturers do not invest in research, design and early marketing.

Original manufacturers used certification and stamps to ensure authenticity, but these can be easily replicated by counterfeit manufacturers.

Software Certification and 3D Printing

Greats, a sneaker manufacturer in Brooklyn, New York, Origin, a 3D printing manufacturer, and Chronicled, a sneaker and fashion software authentication company, have developed a smart tag for their Beast Mode sneakers. The tag is 3D printed, and each tag has a unique ID code that is linked to the pair of shoes it is associated with. Each tag has an encrypted NFC chip that can be scanned by a smartphone.

The chip is integrated into the 3D printing process, so it cannot be removed from the plastic without destroying it. The purpose of the tag is to allow consumers who purchase the item to which it is linked to to trace its history.

Blockchain technology ensures that Bitcoin cannot be counterfeited because it uses an encrypted database to make Bitcoin transactions inextricable from previous transactions. Chronicled recognizes this technology. The blockchain verifies Bitcoin and provides a complete record of all transactions.

Chronicled and Origin developed a blockchain for sneaker trading, processing each smart tag like a bitcoin. When someone scans a smart tag using a mobile app, the smart tag confirms the product's authenticity and gives the history of who has owned the sneakers. If someone wants to sell the sneakers, he or she must transfer the ownership of the smart tag through the Chronicled app.

An affordable solution

The labeling is low-cost, making it affordable for manufacturers.

Greats’ first consumer product to use the Bitcoin-like smart tag is the Beastmode 2.0 Royale Chukkah, and Chronicled hopes to use smart tags on more of their products.

Dynes is a fashion brand that will also use this technology this year.

Chronicled also plans to use the tags in the sneaker accessories market to ensure that users can buy authentic products. Each pair of sneakers will be directly authenticated by Chronicled before being assigned the smart tag.

With smart labels, you no longer have to worry about counterfeit manufacturers claiming that their products are authentic.