Italy is one of the countries most affected by the economic crisis caused by COVID-19. It is slowly starting to recover the economy. Among the programmes aimed at improving the situation, there is a project to combat counterfeiting and its key aspect is the development and implementation blockchain technology.
Italians want to protect "Made in Italy" products
Counterfeit products 'Made in Italy' are sold on markets all over the world. The Italian government is now fighting these counterfeits by investing 15 million euros in developing a blockchain solution.
According to a new dGen report, counterfeit 'Made in Italy' labels caused a loss of 12.4 billion euro in 2016 alone. Such losses directly affect both the income and future livelihood of many Italian craftsmen and entrepreneurs.
In 2018 Forbes revealed a report which shows that the counterfeit industry has increased from 461 billion USD in 2013 to 1.3 trillion USD.
Blockchain technology is rescue plan
Blockchain technology is designed to help authenticate goods and raw materials through the supply chain. Modern supply chain management systems strive for the best possible transparency and efficiency. Key role at all stages of the chain play: liquidity and integrity.
Due to its construction and character, the blockchain network offers high resistance to modifications. The data stored in the blockchain cannot be changed or modified, and any attempt at interference must meet with the acceptance of the entire network.
The mechanism of recording and verifying cryptocurrencies transactions can be easily adopted in the supply chain. Interestingly, Italians also want use blockchain to fight against fake news.