How to optimize Suppy Chain Management with Blockchain Technology

Supply Chain Management (SCM) can be very complex. Supply chains involve the transformation of raw materials and components into a product that is sold and delivered to a costumer. Supply chains also link value chains. A supply chain manager is particularly concerned with supply chain design and supply chain protection. In most cases this means: counterfeit prevention.

But how can we protect products more effectively?

The short answer is: By using Blockchain Technology in Supply Chain Management.

Blockchain Technology is the best anti-counterfeiting solution to date, because it enables efficient supply chain tracking and transparency. Thus, using Blockchain for Supply Chain can both optimize Supply Chain Management and enhance fraud prevention.

Lieferketten China Supply Chain Blockchain 2023

Why China Needs Supply Chain Solutions Like These…

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China produces over 28% of the world’s goods. However, recent challenges have destabilized the country’s ever-growing economy and its dominant market position as the world’s manufacturing superpower.

Our recent trip to Hongkong and Shanghai revealed China’s keen interest in our Blockchain supply chain solutions. And not only manufacturers are eager to adopt innovative technologies like ours, but also the Chinese government. In this blog post, you will find out why.

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Lieferketten China Supply Chain Blockchain 2023

Supply Chain Challenges in China in 2023: Meeting government officials and sales representatives of brands such as Liptton, a leading motorcycle manufacturer producing chassis and tanks for companies such as KTM, Honda and Harley Davidson, on our trip to Hongkong and Shanghai.

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China’s Supply Chain Challenges

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1. Post-pandemic supply chain disruptions

The pandemic has drastically disrupted global supply chains. Shortages are intensifying. Many businesses struggle to receive essential deliveries. The just-in-time (JIT) system is broken. The surge in online shopping exacerbates the issue. Ports are congested, even as new ones arrive, and rising fuel costs slow ships, and rising fuel costs are slowing ships, further complicating container schedules.

2. The costs of everything are escalating

China’s economy has soared, but here’s the catch: With economic growth comes higher wages. Manufacturing isn’t as cost-effective as before. With increased taxes and labor costs, companies are exploring countries to outsource their production as they used to. After all, if better quality can be achieved for less, it’s the logical choice.

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ivault in china supply chain solutions for logistics and container tracking

China 2023: Adopting blockchain supply chain solutions for logistics and container tracking.

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3. Diversification for better risk management

The world’s waking up to the risks of putting all their manufacturing eggs in one basket. Companies are diversifying their manufacturing to reduce risks. With Countries like Vietnam, India, and Bangladesh, China is facing competition. They’re investing big in infrastructure, making them attractive alternatives for manufacturing. Even big companies are looking to diversify their supply chains, spreading out their operations across multiple countries. The shifts in Samsung’s and Apple’s strategic manufacturing highlight this global supply chain trend.

4. Geopolitical tensions, sanctions and restrictions

The global political arena is tense, with China often in the spotlight. Companies fear supply chain disruptions due to conflicts. And no company wants its supply chain ensnared in political disputes. Sanctions, restrictions, and geopolitical conflicts pose significant risks to global enterprises.

Read more about recent investment and supply chain policies in China here: Investment/Supply Chain Policies in China 2020-2023

5. Environmental priorities call for greener supply chains

The global push for eco-friendly practices is strong. Even stronger than China’s manufacturing power, it seems. Environmental challenges mean companies need to adapt or risk falling behind. Driven by consumer demand, most brands are leaning towards green manufacturing. If China doesn’t step up its green game, it might get left behind in the eco-revolution. Yet, companies in China are poised to embrace these eco-challenges to defend their market position. And so does the Chinese government!

But there’s a problem…

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Our Visit To China

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China, known for its massive vehicle production, is eager to defend its global market position. In the global automobile industry, for example, China stands as the world’s largest vehicle producer, manufacturing over 26 million passenger cars and commercial vehicles in 2021. China’s leading motorcycle manufacturers include Grand River (Haojue brand), Lifan, Zongshen, Jianshe, Cyclone, Jialing, and many more.

However, many Chinese OEMs and smaller suppliers grapple with the EU’s new supply chain regulations. Even big corporations aiming to export to EU member states encounter similar challenges. And there is no dedicated liaison to guide them in establishing a system to monitor their supply chain and validate their compliance and adherence to sustainability standards.

That’s why our Blockchain supply chain solutions caught the attention of both businesses and government officials during our visit to Hongkong and Shanghai.

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Lieferketten China Supply Chain Blockchain 2023

From left to right: Ingo Xu, President of the Chamber of Commerce in Guangzhou; Arman Sarhaddar, Founder and CEO of Vault Security Systems AG, Dr. Cheng Li, General Agent in China for Vault Security Systems AG.

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Our CEO, Arman Sarhaddar, and Dr. Cheng Li, our general agent in China, visited two renowned entities in particular: a leading motorcycle manufacturer and an automotive company producing engines for esteemed brands like Honda and KTM.

As an awarded Swiss provider of blockchain supply chain systems with extensive experience, we are one of the few companies with a patent (in the US and China in 2023) and market-proven solutions. So, the representatives we spoke with were intrigued. And so were the government officials in Guangzhou!

And yes, there is more than one good reason for that: With a Blockchain-based platform and tracking solutions like ours – designed for logistics and supply chain management –, every material and product has a digital twin. This unique copy provides verifiable data about its origin, quality, safety, ethics, and environmental impact. Businesses and their suppliers can utilize these tools to foster trust in their cross-border operations and prove their compliance with EU laws.

Read more below!

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Why Blockchain Supply Chain for China

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Now, here are the 5 most compelling reasons why Chinese manufacturers desperately need Blockchain Supply Chain Solutions like ours:

  • Brand authenticity
  • Sustainability
  • Efficiency
  • Trust
  • Flexibility

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1. Authenticity is even more of a game-changer now

Let us face facts now. In today’s fast-paced world, with Chinese manufacturers pumping out products at an unprecedented rate, everyone’s talking about authenticity. Brand authenticity. But China is not exactly known for that. The country has faced challenges with counterfeits.

Now, here’s the catch: How do consumers know they’re getting the real deal? Enter Blockchain! With a professional Blockchain solution, every product has its unique digital twin, identity, passport. Immutability ensures it’s genuine. No more fakes, no more doubts. Just pure, unadulterated authenticity. That’s a game-changer for many companies. And China is on the brink of reshaping its global reputation by adopting innovative solutions like ours faster than we could have imagined.

2. Sustainability isn’t just a marketing buzzword

We all know the environment is a hot topic right now. And guess what? Chinese manufacturers are feeling the heat too. They’re under immense pressure to prove their sustainability efforts in the face of our global economy. That’s what makes Blockchain solutions even more powerful for Chinese companies, it seems.

With Blockchain, every step of the supply chain is transparent. From raw materials to the finished product, everything’s on record. It’s not just about saying you’re sustainable; it’s about proving it, especially for the younger generations of environmentally conscious consumers.

3. Supply chain efficiency is winning the race

Time is money, and in the manufacturing world, efficiency is key. But traditional global supply chains are riddled with inefficiencies. With Blockchain, every transaction, every movement, every single detail is recorded in real-time. No more waiting. No more guessing.

The pandemic hit businesses where it hurts – the wallet. But here’s the silver lining: Blockchain streamlines operations, reduces errors, and cuts unnecessary costs. In a time when every penny counts, Blockchain for the supply chain is better for your business than any piggy bank, no matter how bulging.

4. Trust is the new currency of the digital world

Chinese manufacturers are dealing with global clients, and building trust is crucial. Post-pandemic consumers and the generations to come are more skeptical than ever. They want to know where their products are coming from and if they are safe.

Blockchain gives them that confidence. There’s no room for errors or deceit. Everything is transparent. Everything is verifiable. Every step, every process, every safety measure – it’s all there, clear as day. It’s like a trust badge stamped on every product in the supply chain. And companies can give their customers a backstage pass to the entire manufacturing process.

5. The game is on: adapt or get left behind!

The world is changing fast. Manufacturers that will not adapt to new technologies now will find themselves in the rearview mirror. But China has always been quick. It wasn’t surprising that they were intrigued by our Blockchain and tracking solutions.

They understood, right away, what we have known from the start: Blockchain isn’t just a fancy tech term; it is the future of supply chains. Chinese manufacturers have a golden opportunity to lead the charge, to set the standard. And with our solution, they will not just adapt; they will thrive before other countries’ industries will. And they will definitely leave some of today’s global players behind.

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ivault in china supply chain solutions for logistics and container tracking

China 2023: Adopting blockchain supply chain solutions for logistics and container tracking.

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China And The Sharing Economy

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Since 2020, around half a billion people across the US, UK, China, Germany, France, and the UAE shared possessions or services to make money via sharing services. More than 680 million have consumed these sharing economy assets or services in the same period.

China is the stand-out market. 73% of its online population are consumers in the sharing economy, and 55% supply goods and services to it. Uniquely, China is the only market where all age groups participate to broadly the same level. In other markets, there is a strong skew toward younger generations.

With the new version of our consumer app, we are ready to serve this market. The ivault sharing app is a new Web3 sustainable lifestyle app to lend and share used goods. Users can make money, save money, and earn rewards for their sustainable behavior. Powered by blockchain technology, ivault puts the sharing economy on steroids while protecting user privacy like no other social network. Think of Uber or Airbnb, but for everything you own. Stay in touch to receive our white paper FIRST! Sign up for our newsletter here.

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China and the sharing economy

China and the sharing economy. A great outlook for the ivault app.

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Conclusion

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China, a dominant force in global manufacturing, is grappling with supply chain challenges. From pandemic-induced disruptions to rising costs and geopolitical tensions, the landscape is shifting. However, the introduction of Blockchain-based supply chain solutions offers a fast-track ticket to the forefront of the passing lane. Our solutions ensure verifiable brand authenticity and trust, sustainability and compliance, efficiency, and flexibility. As the world evolves, manufacturers must adapt to stay ahead, and Blockchain provides the tools for this transformation.

Embracing Blockchain technology is not just a strategic move; it’s a necessary evolution to maintain global leadership. As Chinese manufacturers recognize the potential of Blockchain, they’re poised not only to overcome current challenges but to redefine their global standing. With innovative solutions at their fingertips, the future of China’s supply chain looks promising and resilient.

Arzneimittelfälschungen Coronavirus fake drugs and counterfeit pharmaceuticals

Counterfeit Drugs 2021 Statistics and Facts
Or: How Blockchain can Fight the Pandemic

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While COVID-19 and mutations of the coronavirus kept us on our toes in 2020, counterfeiters were able to distribute vast amounts of counterfeit drugs.

Pharmaceutical companies are struggling to monitor their suppliers and verify the authenticity of their supply chain. The booming counterfeiting market always seems to be one step ahead of them. So far, there is only one effective and reliable protection for supply chains: Blockchain Technology.

That’s what CEO and Blockchain expert Arman Sarhaddar elaborates in his article on counterfeit and fake drugs in the pandemic.

Click here to read the original article on the publisher’s platform Builtin.com: While you’ve been distracted by COVID-19, counterfeiters have been pushing fake drugs. Here’s how Blockchain can stop them.

Arzneimittelfälschungen/Counterfeit drugs 2021: Seit März 2020 tauchen im Zusammenhang mit der Corona-Pandemie zahllose Produktfälschungen im Netz auf. Die Imitate und Fakes infiltrieren auch die legale Supply Chain.

Counterfeit drugs 2021: Since March 2020, countless fake products have appeared on the web. Substandard imitations of pharmaceutical products and fake drugs also infiltrate legal supply chains.

Blockchain against COVID-19 and counterfeit drugs

 

Blockchain Technology in short is a trustworthy and tamper-proof decentralized system, that provides transparency and counterfeit protection for supply chains. All these features are useful not only in the field of cryptocurrencies and FinTech. Considering the facts, the application of Blockchain seems even more useful for a number of other purposes – including the fight against COVID-19.

Consequently, in March 2020 the World Health Organization (WHO) announced its cooperation with companies that are already successfully using Blockchain Technology. IBM, Oracle and Microsoft, are a few well-known examples. The goal, they say, is to develop a platform for collecting and sharing data to help contain the pandemic.

Such a platform is certainly helpful. But it is not the only way to use Blockchain Technology during the health crisis. In our previous article, we already explained 3 Digital Trends that could be revolutionized by Distributed Ledger Technology (DLT) or Blockchain in 2021.

Blockchain can help us fight COVID-19 and manage the global crisis in many ways. To mitigate the health risks posed by the global trade in counterfeit and fake drugs, for example, Blockchain can also be used to combat counterfeit medicines.

1. The surge of counterfeit drugs in 2020

 

Never before have so many scientists around the globe come together to research vaccines and combat a virus. The reason for this clear: The number of infections is increasing exponentially, threatening nearly eight billion people.

In March 2020, Europol published a warning, that there will be a rise in crime related to the pandemic. According to the EU’s law enforcement agency, especially cases of cybercrime, fraud, theft as well as counterfeiting will increase due to the coronavirus.

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Since then, sales figures of counterfeit medical equipment such as protective gear and counterfeit medicines have been increasing rapidly. Counterfeiters are deliberately stoking people’s fears of shortages (of disinfectants for example) in order to make a profit. The demand for nutritional supplements and vitamins to support the immune system has also been exploited.

In Operation Pangea, a raid against organized crime in March 2020, Europol seized four million packages of various counterfeit drugs and about 34,000 fake surgical masks. Among the fake drugs were antiviral drugs, the anti-malarial drug chloroquine, as well as dietary supplements and vitamin preparations.

Along with other observations around products such as counterfeit antibiotics and Viagra, such incidents demonstrate that popular and much-needed pharmaceuticals are especially hard-hit by counterfeiting.

An end to these activities is far from in sight. In fact, quite the opposite is true.

The demand for vaccines and cures against COVID-19 remains huge. The supply is lagging behind, as we can basically see in every corner of the world. Counterfeiters continue to profit – especially online.

The World Wide Web is the biggest gateway for fake drugs as well as other counterfeit products. Ordering medicines from online pharmacies has become increasingly popular due to limited mobility during lockdown. But some providers cannot be trusted. Criminals lure unsuspecting buyers with seemingly attractive prices and products. During a global health crisis, these activities are particularly dangerous and pose an even greater threat to human life.

2. How Blockchain can fight counterfeit drugs

 

Pharmaceutical companies try to monitor their suppliers and ensure the quality and the authenticity of products in their supply chain. Yet it is difficult to ensure complete supply chain protection – at least it has been until now.

Blockchain Technology is the best anti-counterfeiting solution available to date. Yet, it can provide a revolutionary level of supply chain transparency and thus, the best protection against counterfeit drugs entering the supply chain so far. Blockchain is based on Distributed Ledger Technology (DLT, that allows data to be stored in a decentralized manner, instead of in a central database.

Each entry is encrypted individually and every change must be verified by all the distributed nodes within the system. This makes it virtually impossible to hack a Blockchain. So, once stored, data cannot be tampered with anymore. The technology therefore makes it much easier to detect fraud and identify weak points in the supply chain. This gives companies full supply chain visibility and optimal counterfeit protection.

The technology also opens up the possibility for any customer to verify the authenticity of a purchased product such as medicine – for example, by scanning a QR code on the product packaging via an app such as ivault. This makes it easy for any buyer to determine whether their product is genuine or whether it is likely to be a counterfeit.

Blockchain Technology is not only a useful anti-counterfeiting solution, but it also increases brand protection as well as product safety and, in the case of pharmaceutical products, patient safety.

In addition to combining Distributed Ledger Technology and QR codes, Blockchain solutions are also compatible with other established technologies, such as NFC, RFID or GPS. These are all technologies that are based on the contactless transfer of data.

As a result, Blockchain can be adjusted to the individual requirements of each company and it comes with a variety of advantages. This makes a Blockchain solution work for manufacturers of a large number of different products – from expensive testing equipment, such as X-ray or MRT machines to vaccines, masks and simple pills.

Arzneimittelfälschungen in der Corona-Pandemie 2020: Von gefälschten Schutzmasken und Fake Impfstoffen wird online alles angeboten.

Counterfeit drugs during the pandemic 2021: Some approvals are already through and the administration of the first vaccine doses has begun. But counterfeiters are waiting for their chance to put fake vaccines into circulation. Blockchain applications can help to track and trace the distribution of genuine vaccines.

 

Thus, ensuring product authenticity at the highest level possible can be achieved by using Blockchain Technology for Supply Chain. At the same time, Blockchain serves as an effective means of deterring counterfeiters, as it is very easy to determine where counterfeit products have entered a supply chain.

It is no wonder that more and more companies are turning to Blockchain Technology during the pandemic. After being trivialized for a long time (and sometimes being equated with cryptocurrencies), its full potential is now being recognized. It can provide the necessary transparency and the highest possible security, and thus also save human lives.

Counterfeit drugs statistics 2021:
Facts and figures to date

 

Right from the start, the crisis clearly demonstrated the severity and dangers posed by global trade in counterfeit drugs and other fake products. Serious health and safety issues arise when people order fake drugs online, as counterfeit drugs do not contain the right formula and may also contain dangerous ingredients.

During a public health crisis like the one we are confronted with today, the fight against this massive global problem becomes even more acute. Indeed, Interpol, for example, has noted an increase in counterfeit medical products linked to COVID-19.

We too recognized this trend early in the pandemic and formulated 5 forecasts of drug counterfeiting related to the coronavirus based on global counterfeit statistics.

According to the World Health Organization (WHO), an increasing number of counterfeit drugs are also being sold in developing countries in connection with the coronavirus. Both U.S. Customs and Border Protection (CBP) and other countries’ customs authorities reported seizures of counterfeit COVID-19 tests and protective equipment such as face masks and hand sanitizers.

These examples show that, unfortunately, our predictions were correct and to this date too little has been done to tackle these problems. Apart from companies, also governments need to ensure the legal and safe origin of pharmaceutical products both online and in local pharmacies. After all, counterfeit drugs cause considerable economic damage as well as risks to the health and safety of citizens.

To help governments, the OECD and the European Union Intellectual Property Office (EUIPO) joined forces to provide policymakers with solid empirical data on the value, volume and trends of global trade in counterfeit drugs.

1. Counterfeit and fake products on a global scale

 

In an updated report, the OECD illustrates some facts and figures on global trade in counterfeit products:

“The results are alarming. In 2016, counterfeit and pirated goods amounted to as much as 3.3% of world trade, and up to 6.8% of EU imports from third countries. These figure underscore once again the need for coordinated action against IP crime in general and trade in counterfeits in particular.“

3,3 % corresponds to as much as 509 billion USD, while in the EU alone, imports of counterfeit products amounted to up to 121 billion euros (134 billion USD). The graphic below shows the products that are the most frequently counterfeited:

Welche Produkte sind von Fälschungen betroffen? Grafik der OECD

Which products are most frequently affected by counterfeiting? Source: OECD, Trends in Trade in Counterfeit and Pirated Goods.

 

2. Counterfeit drugs statistics 2020

 

Counterfeit drugs not only cause economic losses for the pharmaceutical industry, but also pose a serious threat to the health of the public as a whole. The joint EUIPO/OECD study on trade in counterfeit pharmaceutical products, published on March 23, 2020, shows that international trade in counterfeit drugs reached about €38.9 billion in 2016.

EUIPO/OECD: Trade in Counterfeit Pharmaceutical Products

The study shows that counterfeit antibiotics, sexual enhancers or lifestyle drugs, as well as painkillers are dominating. But other counterfeit drugs were also seized (see chart below). Counterfeit drugs may contain too little, too much or no active ingredient of the real drug. They may also be contaminated or contain entirely different ingredients.

EUIPO (Juni 2020): Häufigkeit verschiedener beschlagnahmter Arzneimittelfälschungen von 2014-2016

EUIPO (June 2020): frequency of various counterfeit medicines seized from 2014-2016, source: EUIPO, 2020 STATUS REPORT ON IPR INFRINGEMENT.

Due to counterfeit drugs related tax evasion EU governments lose approximately €1.7 billion in revenue. 96% of all counterfeit medicines seized by customs, are postal or express courier shipments. The social cost of counterfeit drugs is also high. It is estimated that each year more than 80,000 jobs are lost due to counterfeiting in the EU pharmaceutical and related sectors.

However, counterfeit drugs, such as unproven treatments, or fake equipment and accessories, such as corona tests, medical devices, masks, ventilators, gloves, etc., have been flooding not only the European market since the early 2020s.

A number of illegal web shops worldwide promote and sell counterfeit drugs and vaccine fakes for the prevention and treatment of COVID-19. In March 2020, a large number of new domain names were registered for illegal purposes, containing terms such as “covid,” “corona,” and “virus.” These appear to be professional counterfeiters who have previously sold other fake drugs online and are now trying to make a profit from COVID-19-related counterfeit drugs.

The National Association of Boards of Pharmacy (NABP) has identified many of these illegal online pharmacies that purport to sell prescription drugs for the treatment of COVID-19. They also found that over 90% of the identified COVID-19 domains were registered anonymously, making it difficult for law enforcement agencies.

NABP, 2020: Rogue Online Pharmacies in the Time of Pandemic: Capitalizing on Misinformation and Fear

The pandemic has thus shown that criminals can adapt quickly to new market conditions and always find ways to infiltrate the legal supply chain of pharmaceutical companies. Especially with the lack of an effective anti counterfeiting solution to track and trace the supply chain.

It’s time to put Blockchain to work here.

3. Additional ressources:

 

EUIPO (Juni 2020), 2020 Status Report on IPR Infringement, Why IP Rights are important, IPR infringement, and the fight against counterfeiting and piracy, doi: 10.2814/165063, https://op.europa.eu/en/publication-detail/-/publication/d7e6f903-c577-11ea-b3a4-01aa75ed71a1 (visited on 04/01/2021)

European Commission (Dezember, 2020), Commission Staff Working Document, Counterfeit and Piracy Watch List, Brüssel, https://trade.ec.europa.eu/doclib/press/index.cfm?id=2225 (visited on 04/01/2021)

OECD/EUIPO (März 2020), Trade in Counterfeit Pharmaceutical Products, Illicit Trade, OECD Publishing, Paris, https://doi.org/10.1787/a7c7e054-en.

Sarhaddar, Arman (Juni 2020), Wie die Blockchain vor Arzneimittelfälschungen schützt, https://www.industry-of-things.de/wie-die-blockchain-vor-arzneimittelfaelschungen-schuetzt-a-937779/

 

Blockchain steht für Cybersecurity: Die Blockchain Technologie kann helfen Datenschutz und Datensicherheit zu erhöhen.iStock

3 Digital Trends in 2021 for the Blockchain Revolution We Need

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Despite the many hurdles due to the global pandemic in 2020, Vault Security Systems AG was able to win many new clients and partners who think – and act – with us towards a better future.

According to CIO Applications, CIO Bulletin and Technology Innovators, we are among the world’s leading pioneers in blockchain and blockchain for supply chains. But in the fight against counterfeiting and fraud, the actual implementation of innovative ideas counts more than all the awards, publications on renowned platforms and invitations to international events.

That’s why we want to elaborate on 3 digital trends that blockchain can revolutionize in 2021.

In this blog entry you will also learn how ivault for companies and consumers can contribute to this development – with 3 strong Blockchain Use Cases.

Blockchain steht für Cybersecurity: Die Blockchain Technologie kann helfen Datenschutz und Datensicherheit zu erhöhen.

Blockchain 2021

What Technology Innovators says about ivault

 

Technology Innovators, the “New-age knowledge sharing platform,” ranks Arman Sarhaddar as one of the Top 25 Blockchain Technology CEOs 2020. They are writing:

 

Arman knew right from the start: Blockchain is much more than Bitcoin. And today, there are many blockchain providers trying to capture the Supply Chain market. But Blockchain Technology alone is only one side of the coin. It is the combination of Distributed Ledger Technology (DLT) with other technologies that is the way forward.

There is nothing more to do than to proudly agree with Technology Innovators: With our anti-counterfeiting technology ivault we really are among the pioneers.

Our platform helps not only companies protect products by shielding the entire supply chain against fraud and counterfeiting – thanks to improved supply chain transparency and traceability. ivault.app for a safer neighborhood enables consumers to protect their most valuable items and assets against theft and loss as well – not only in their immediate environment, but also on a global scale.

The difference between these two business models? With customized Blockchain solutions, companies benefit from the supply chain security and traceability provided by Distributed Ledger Technology. They can also provide customers with transparency regarding production conditions. Another advantage is that customers can thus check via smartphone that the products are indeed authentic originals.

 

3 digital trends and our Blockchain Use Cases

 

This month, Blockchain expert Arman Sarhaddar published an article about 3 striking digital trends that clearly emerged for 2021:

  1. The combination of established technologies with innovations such as Blockchain or Distributed Ledger Technology (DLT)
  2. Blockchain and sustainability: Sustainable business models are becoming increasingly important
  3. The social collective: digital solutions against isolation and loneliness during the global pandemic

These 3 digital trends call for a Blockchain revolution via innovations like ivault. Below we will demonstrate this with three of our Blockchain use cases.

1. Combining different technologies

 

There are many Blockchain companies and startups that claim expertise in the field. But Blockchain is not all that is needed for a digital revolution. The Distributed Ledger Technology can only develop its full potential when it is linked with other technologies.

Many technologies are already well established and mature in many aspects. Of course, these technologies must continue to be used and combined with Blockchain Technology, these are responsible for success. Providers of innovative solutions can be connected via APIs and integrated into an existing IT infrastructure, workflows and testing processes.

In this way, a familiar interface can be supplemented and optimized with additional functions, which can result in an enormous gain in efficiency. This is the case not only for Blockchain but for Artificial Intelligence and other innovations as well.

With ivault, for example, we are already using QR codes, NFC chips and GPS trackers in products that can be monitored using Blockchain tracking. This makes the supply chain, products, and manufacturing conditions completely transparent and traceable.

Blockchain Supply Chain Use Case Nr.1: Counterfeit and fake drugs

The great advantage in our case is that the technical weaknesses of QR codes, for example, can be offset by the high information security of a decentralized database. We have already demonstrated this with food products such as Golisan’s herbal extracts, which have been certified with the ivault verified label.

Putting QR codes on product packaging is a particularly cost-effective measure. But they can also be easily copied and then pasted onto a counterfeit product, for example. But the data stored in a decentralized way based on Blockchain Technology cannot be changed or manipulated.

So if each individual product receives its own unique QR code, as is the use case with Golisan, there can be no QR code twice. This means that counterfeiting can be noticed very quickly if duplicate or even multiply copied QR codes are scanned – e.g. by customers who unknowingly purchased counterfeit drugs from a dubious online pharmacy.

Right after the buyer scanned the QR code he can check for himself that the product was never sold to that online pharmacy by the drug manufacturer! – as long as the manufacturer makes this information available to the general public via the ivault app. He immediately gets a fake drug alert notice. And so does the manufacturer.

So – although the use of QR codes has been criticized time and again before – we have clearly created a new value here, thanks to the uniqueness of QR codes and Distributed Ledger Technology. Of course, even more secure – especially in relation to pharmaceutical products – is the use of NFC chips in combination with Blockchain.

In the coming year, we can look forward to more innovative linkages that combine the best features of multiple technologies and solve a variety of different challenges.

Supply Chain Fälschungssicherheit bei Golisan: Die Nahrungsergänzungsmittel von Golisan haben nun das ivault verified Label auf der Produktverpackung und je einen eigenen QR-Code auf der Etikette.

Anti-counterfeiting solution based on Blockchain at Golisan: Golisan’s herbal extracts now carry the ivault verified label on the product packaging and each bottle has its own unique QR code, to make the products 100% counterfeit-proof.

 

2. Blockchain and Sustainability?

 

Sustainable business models are the future. Because we won’t have any other.

As CEO Arman Sarhaddar puts it, “Sustainability has long been more than a buzzword – it’s a necessity, rightly demanded by both customers and business partners.”

Here are some examples for new business models that focus on sustainability:

  • Circular Economy (a model in which resources are not consumed but used and reused wherever possible)
  • new product paradigms such as the cradle-to-cradle design concept and
  • sustainable offerings in the financial sector

However, sustainability encompasses not only the ecological dimension, but also the social and economic dimensions. Technologies that enable sustainable business models to be successfully implemented and optimized will also be in high demand in 2021 and will be further developed.

This is also where Blockchain comes into play again – for example, in fishing and fish farming. Responsibly caught fish will become traceable through Blockchain Technology, and by monitoring the supply chain, substandard products can be detected earlier. New productions, recalls, and damages can thus be reduced.

Blockchain Supply Chain Use Case Nr.2: Sustainable Fashion

In the case of clothing, proof of sustainability is also becoming increasingly important: Buyers of these products want to be sure that their clothing is 100 percent sustainably produced, especially if they are expected to pay a higher price.

From the production of materials to the point of sale, every step in the complex supply chains of clothing manufacturers must be identifiable beyond doubt. If this is the case, counterfeit products on Ebay or Amazon, for example, can be quickly identified.

In addition to authentication via smartphone, thanks to ivault, consumers also get the transparency they want regarding sustainable materials and fair production conditions – whether it is sustainable fashion, branded clothing or luxury goods like watches as well as fish, meat or other foods.

Blockchain is setting a new benchmark in consumer trust. ivault is the prime example of the new way of connecting manufacturers and consumers – a Blockchain-based communication channel that increases trust in a brand. This can also increase brand awareness. Companies, on the other hand, know the buyers and owners of their products.

3. Togetherness – during and after COVID-19

 

The year 2020 has shown us more than clearly that digital solutions can make a very valuable contribution to strengthening interpersonal relationships and counteracting isolation and loneliness caused by COVID-19-related “Social Distancing”.

Providers for video conferences like Zoom, collaborative communication tools like Slack, and in the private sector apps like Houseparty already experienced a high demand during the first lockdown. Traditional social media platforms like Facebook, on the other hand, are losing relevance. Thus there is clearly a need for new technologies that can connect people and better replace real physical interaction digitally. The need for digital networking options will continue to grow in 2021.

Last but not least, the current crisis is leading to more solidarity between and among people. The great willingness to go shopping for people from at-risk groups is just one example. This greater networking in one’s own neighborhood and the renewed recognition of how valuable it is will give a particular boost to digital platforms that bring people together at the local level.

The Forrester study “2021 Predictions” also points to these developments, which play a central role for customer service and the authentic communication with customers as well. The goal of every company should be to anticipate consumer behavior and needs. These resources can provide important insights:

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Blockchain Use Case Nr.3: Digital tools for a better local community

While digital solutions for local networking among people will be on the rise, data protection and information security will also become an even more relevant topic in 2021. Proper handling of customer and user data in compliance with the GDPR is central to the implementation of new digital solutions such as the ivault.app for consumers.

ivault brings people together locally, enables trusting and secure coexistence in every neighborhood. In doing so, the technological properties of Blockchain guarantee the highest possible protection for user data – while many apps collect vast amounts of personal data and users are hardly aware of what their apps know about them.

Our Blockchain-based platform is anonymous. Users decide for themselves when to disclose what data about themselves.

For example, a user can register his brand new e-bike in his anonymous Blockchain wallet at ivault to protect it from loss and theft. Not even we know, who has entered what valuables and items in our decentralized database, because we do not collect any of this personal data.

However, if the e-bike is stolen, the owner can report the theft via ivault, making it public for his neighborhood and surrounding areas. This is the only way that the stolen bike, a lost wallet or a runaway dog can be found and returned to the owner by someone nearby. A trustworthy babysitter or tutor nearby can also be found more easily this way, of course.

More importantly, the owner briefs his neighborhood of theft crime going on nextdoor. ivault thus acts as a cornerstone of a safe, responsible and trustworthy neighborhood. Crime prevention is guaranteed, because fraud and theft are hardly left any room, as ivault supports the entire community to keep an open eye for fellow citizens – without much effort, because every user receives important notifications such as theft reports directly on their smartphones.

 

Summary
10 Advantages of the Blockchain solution ivault

 

ivault has set itself the goal of establishing a new standard in anti-counterfeiting using Blockchain Technology. That is, for every company, every product and every individual consumer. In an earlier article, we already pointed out some advantages of the ivault Blockchain solution, which we want to summarize for you again in the following paragraphs:

1. Combining innovative and well-established technologies

The potential of ivault Blockchain lies in the combination with other established technologies such as NFC or GPS. In doing so, the customized Blockchain solution can be easily integrated into an existing Supply Chain Management system to increase anti-counterfeiting, traceability and transparency. Within a short time, we were able to implement this for the company Golisan, for example.

2. Supply Chain Traceability

Every production step in the supply chain is traceable in the long term. The manufacturer has real-time information about where a product is located or which production step it is currently undergoing – including suppliers, intermediaries and distribution partners. This makes it easy to trace where counterfeit products might have entered the process.

3. Supply Chain Transparency

With the help of ivault, the entire supply chain thus becomes transparent – for the manufacturer as well as for the end consumer, who nowadays is very concerned about sustainability, animal welfare and fair production conditions. The manufacturer can use our B2B solution to give environmentally conscious consumers the transparency they desire.

If a buyer scans the QR code on a Golisan product, for example, he or she gets all the information about the ingredients and their origin – full supply chain transparency thanks to Blockchain Technology. With its herbal extracts, the Swiss company is thus unrivaled on the food market so far …

4. Significant damage reduction for companies

Financial losses and damage to a company’s reputation are reduced because counterfeit products that infiltrated the supply chain can be detected much faster thanks to ivault. Consumers are thus less likely to be harmed by cheaply produced imitations such as fake drugs.

Corona Arzneimittelfälschungen, Fälschungssicherheit Supply Chain Transparency

Whether it’s imitations of branded clothing that are contaminated with pollutants, harmful counterfeit drugs, or defectively imitated spare parts for elevators, motor vehicles, or even airplanes – product counterfeiting entails serious, sometimes fatal consequences. These risks can be drastically reduced with the help of our Blockchain solution.

5. Preventive counterfeiting protection with the blockchain

Being able to track exactly where counterfeiters have infiltrated a supply chain also serves to prevent counterfeiting and fraud attempts. The efficiency of Blockchain, in terms of traceability and supply chain visibility, is an effective deterrent against counterfeiters who fear that their criminal activities will be exposed even before they are able to make a profit.

For companies that have already implemented our technology, this competitive advantage is essential. Thanks to ivault, they have not only an preventive anti-counterfeiting solution, but they were also able to build a new relationship of trust with their customers. For the competition, on the other hand, it is becoming increasingly difficult to make up for this deficit.

6. Consumer trust thanks to transparency and authenticity

The many advantages of ivault for companies have a particularly positive effect on the customer relationship, because the customer also has many advantages thanks to ivault. First, he can have full transparency when it comes to sustainable products, fairtrade and animal welfare. Secondly, consumers can easily check at any time from anywhere with any smartphone whether they bought an original product. This enables consumers to gain new trust in a brand – even after previous damage caused by counterfeiting.

7. Crime prevention in local communities

Not only global counterfeiting crime can be drastically reduced by ivault. ivault also has a preventive effect on the environment of individual consumers. A neighborhood that uses ivault to recover stolen items, such as bicycles, actively tackles theft crime. Bicycle thieves and other criminals are effectively put in their place as a result.

Is it that simple? Yes. An effect deterrent to prevent theft crime can be something as simple as an ivault sticker. Thus the owner can put the ivault logo on his bike after registration and flagrant thieves will immediately see that the owner uses ivault. Thus the owner will report a theft as soon as he notices and thereby informs and alerts the entire neighborhood! The criminal must fear that he will no longer remain undetected.

8. Guaranteed Data Privacy

Data is stored in a decentralized way. This means that once data have been entered, they can no longer be manipulated. This ensures the highest level of information security and makes fraud virtually impossible – a huge benefit not only for businesses and consumers, but also for the whole insurance industry! Furthermore, the Blockchain is anonymous. We do not steal customer data. Read more about the advantages of blockchain technology here.

9. Sustainability and scalability of our Blockchain solution.

Blockchain scalability in the crypto sector has become one of the biggest challenges, especially for the giants Bitcoin and Ethereum. The culprit is the somewhat outdated, energy-consuming proof-of-work algorithm. ivault, on the other hand, deliberately does NOT use this algorithm. Our blockchain technology is scalable. This means we can even perform 100,000 transactions per second if needed.

However, the ivault Blockchain has nothing to do with FinTech and cryptocurrencies like Bitcoin or Ethereum. Bitcoin mining in particular is known for being environmentally harmful and consuming a lot of energy. But Distributed Ledger Technology can also be implemented in an environmentally friendly way – as in our case.

10. Trust, security, comfort & happiness

All this leads to more security, trust and satisfaction on both sides: Both supply chains and products, homes and neighborhoods become more secure thanks to ivault. Companies and consumers can trust each other, while at the same time companies can better trust their business partners and individual users can better trust their peers. The insurance industry will also happy to see fewer fraud claims.

Blockchain enables a win-win situation in which all parties benefit and can live more comfortable, carefree and happy lives.

CIO Bulletin, Top 30 Most Influential Companies of 2020, providing Blockchain Technology Solutions

The Future of Blockchain Technology in Supply Chain Management 2021

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At the Annual Investment Meeting (AIM) Congress 2020 in Dubai, CEO Arman Sarhaddar spoke about the future of Blockchain technology for supply chains in the fight against COVID-19. You can watch the #AIMDigital video below.

It is no secret, that Supply Chain Management became a challenge during the pandemic: Supply Chains were disrupted and many other problems occurred. But these issues showed once more the potential of Blockchain Technology.

We need to take action, but people are afraid of change… So, what can we say about Blockchain 2021? And how can we build trust in Blockchain technology?

Blockchain AIM 2020: blockchain for supply chain and fighting the pandemic

Blockchain technology in supply chain management: At the Annual Investment Meeting #AIMDigital 2000, Arman Sarhaddar, CEO and founder of Vault Security Systems AG, appeared alongside speakers from renowned companies such as Siemens, Microsoft, Pfizer, General Electric, Philips, Agility, Cigna Insurance, Hyperledger and many more.

1. Blockchain Technology in Supply Chain Management

 

In October, Arman Sarhaddar, the inventor of ivault, was personally invited by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Minister of Defence of the UAE and Ruler of Dubai, to speak at #AIMDigital 2020.

In this article you will find a summary of his impressive speech “Future of Blockchain and its Impact on Supply Chain and fighting the Pandemic”. We will also provide you with further information about the topic.

The Annual Investment Meeting is a special event for technological innovations and interested investors from all around the world. We were honored to have this great chance to be heard and to connect with new partners.

Here you can watch the video recording of the transmission on October 21, 2020:

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2. Challenges in Supply Chain Management

 

The pandemic has forced us to make changes in many areas. But above all, COVID-19, truly a catalyst of digitalization, forces us to be open to these changes.

To understand the impact of COVID-19, Arman takes one step back first: to the time before the pandemic.

For several years pre-COVID, consumers have already been more and more concerned with quality, sustainability and climate impact of products. For example, more people buy regional and organic food. Certifications, quality assurances and supply chain in general, has become a topic for consumers.

Mainly, production conditions help consumers to evaluate products in concrete terms. Thus, a lack of supply chain transparency can also have a negative impact on their purchasing decision.

However, seals and certificates only partially fulfill consumers’ wishes for more transparency. Sometimes even certified products were not up to standards, for example in regard to organic certifications. Thus, governments are now establishing frameworks to dictate to companies quality requirements, which are slowly becoming more popular.

 

3. Impact of COVID-19 on Blockchain

 

At the beginning of the 2020 pandemic, the shortcomings of many supply chains were exposed.

There were many serious disruptions, for example in the supply of food. Supply bottlenecks in the pharmaceutical sector also became more serious.

Consumer behavior and regulations created challenges and requirements. And so did COVID. COVID-19 has created many problems, but also opportunities for change. As bad as the pandemic was and still is, these problems give companies the opportunity to revise processes and tackle inefficiencies.

This is exactly where Blockchain technology can help:

It provides platforms for the transmission and data exchange with the highest reliability and cybersecurity (#InfoSec). It provides platforms for process optimization and automatizations. And it can make different systems interoperable, to work together in a much more efficient way.

Undoubtfully, the digitalization, which is still far behind in many industries, has been fueled by the pandemic in all sectors. COVID-19 has boosted the realization of the immense potential of Blockchain technology.

The grave disruptions many businesses encountered made it obvious that there is a need for the implementation of such innovative solutions for supply chain management.

Arzneimittelfälschungen-Coronavirus

Blockchain technology against counterfeit drugs on the Internet: In the pandemic, more pharmaceutical products are ordered online. With ivault, the end consumer himself can perform a simple authenticity check with any conventional smartphone to ensure that a purchased product is an original.

 

4. The Future of Blockchain technology

 

Nevertheless, we have to keep in mind, for supply chain management and optimization, Blockchain technology is not enough on its own. It can provide astonishing links, connections and integrations.

But to use the full potential of Blockchain technology, we need 3 things:

  1. to provide standards in data integration and exchange,
  2. to meet transparency and privacy requirements of companies, clients and regulators, for example with permissioned systems, and
  3. to connect Blockchain with other technologies, such as NFC, GPS, etc.

Thus, at Vault Security Systems AG, we are combining permissioned blockchains with technologies such as NFC, RFID, GNSS, GPS. Working with permissioned blockchains meets all requirements:

  • Companies decide what and how much to disclose.
  • Clients can rely on privacy.
  • Regulations can be met without compromising security.

When speaking about building trust, what ivault for supply chain management provides, is: A secure ledger for data exchange, where companies can decide what they want to share with each other, and with everyone else, while the data companies decide to keep private is encrypted with the best available security.

P.S. If you would like to learn more about ivault, please read our article about our news from Silicon Valley: CIO Applications rates ivault among the Top 10 Blockchain Solutions of 2020.

Besides Supply Chain Management, there are many other areas of application for Blockchain technology. In the pandemic, healthcare is another focus of the Blockchain pioneers.

Blockchain could have prevented, what just happened in Finnland: According to CNN, patients have been blackmailed after their sensitive health data, namely psychotherapy records, were stolen by hackers.

Following Dr. Efrat Shefer (Philips), Jerome Droesch (Cigna Insurance) and Sinan Atlig (Pfizer) for example, who, along with CEO Arman Sarhaddar, also acted as #AIMDigital Speakers, the pandemic accelerates the adoption of new technologies in healthcare as well. Artificial Intelligence, Big Data and Blockchain play a central role.

Fälschungsschutz Blockchain Supply Chain 2020

Blockchain 2021: The general public’s confidence in Blockchain technology will increase dramatically once end users see Blockchain in their everyday lives. In the supermarket. In the pharmacy. At the doctor’s. Or at home. The question is not if, but when it will happen.

 

5. Outlook: Building trust in Blockchain 2021

 

Despite all this, a large number of companies are still struggling. What is holding them back?

One of the main problems is the lack of trust in Blockchain technology. A lot of people (and decision makers) are afraid of change. They are reluctant to implement new technologies that they cannot fully grasp.

Blockchain technology is still seen in connection with cryptocurrencies and FinTech. However, today’s Blockchain solutions like our product ivault are more energy efficient, sustainable and scalable than the old algorithms of some cryptocurrencies. Furthermore our Blockchain app is GDPR compliant.

What many companies do not know is how easy it is to implement Blockchain technology: It can be added to an existing Supply Chain Management system. Established processes do not have to be reinvented from the bottom, but can be retained and optimized using Blockchain technology.

In order to strengthen the confidence of companies, decision makers have to be more educated about the advantages of Blockchain technology. They do not have to understand every technical detail.

These advantages can be summarized in 3 core statements:

  • Blockchain means increased efficiency in various areas.
  • Blockchain brings information security at the highest level.
  • Blockchain is a clear competitive advantage – especially, for those who act fast…

On the other hand, public trust will significantly increase when end users see Blockchain in their everyday life. Online and offline. In banking or trading applications. In certificates for quality, origin and production conditions of everyday consumer goods such as food.

In the supermarket. In the pharmacy. At the family doctor. At home.

The question is not if, but when  it will happen.

 

P.S. Here is the Thank You Letter, we received from Dubai a few days ago – along with an invitation to join the Annual Investment Meeting again next year. We are looking forward to seeing you there in 2021!

Annual Investment Meeting Thank You Letter for Speaker Arman Sarhaddar

Annual Investment Meeting 2020: Thank You Letter for Speaker Arman Sarhaddar, inventor of the Blockchain app ivault.

 

Fälschungsschutz Blockchain Supply Chain 2020

Counterfeit Protection with Blockchain Supply Solutions
… a Competitive Advantage?

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ivault secures supply chains and fights counterfeit and fraud using blockchain technology. Now, according to CIO Bulletin we are among the 30 Most Influential Companies of the Year 2020.

The interview with CIO Bulletin below focuses on counterfeit protection and fraud prevention in B2B, which is also the basis for our B2C platform, a global lost and found database based on blockchain. We also provide you with the 7 main benefits of our innovative, scalable and sustainable blockchain solution for supply chain management – altogether a major competitive advantage for companies.

The counterfeiting market is not only causing trouble for manufacturers of luxury goods. Pharmaceutical companies, pharmacies and patients who are dependent on drug treatment also suffer from the consequences of counterfeit products.

Unfortunately, fatal incidents occur time and again.

Fälschungsschutz Blockchain Supply Chain 2020

Blockchain for counterfeit protection and supply chain transparency: Everyone talks about Bitcoin, but there is much more to blockchain than cryptocurrencies. Soon the first corona vaccines are on the market… as well as counterfeit drugs. ivault for supply chains is one of the best solutions available in the fight against fraud and counterfeiting.

Blockchain for supply chain management

 

Earlier this year Vault Security Systems AG was recognized by CIO Applications from Silicon Valley as one of the best blockchain solution providers in 2020.

Last month CIO Bulletin approached us as well. CIO Bulletin is a leading platform and central resource for information about business & IT executives. Technological innovations are at the forefront of its print and online productions. Decision makers receive support to help them make the right choice in shaping new corporate strategies and achieving corporate goals.

The initial situation: Today’s standards in counterfeit protection can hardly compete with the booming counterfeiting market. The consequences are not only financial losses for companies. Cheap counterfeit clothes, for example, are produced under environmentally harmful and inhumane conditions. Above all, however, it is the production and distribution of counterfeit drugs that causes health damage and deaths.

In particular, the current situation around COVID-19 is shamelessly exploited. There are already warnings about fake news and fake vaccinations in every country. But since lockdown, people also order a lot of other drugs over the Internet, which is teeming with bogus and fake drugs.

This is where we must take action as quickly as possible! In order to be superior to the counterfeiters, a technological innovation like our B2B solution is urgently needed.

According to the experts at CIO Bulletin, we are therefore one of the 30 Most Influential Companies of the Year 2020.

 

Competitive advantages with blockchain technology

 

ivault‘s mission is to establish a new standard in counterfeit protection with the help of blockchain technology – for every company, every product and every single consumer.

We have summarized the 7 key benefits of ivault below, so you see the competitive advantage companies can gain by implementing the ivault blockchain:

1. Sustainable blockchain solution

Our Blockchain has nothing to do with FinTech and cryptocurrencies like Bitcoin or Ethereum. Bitcoin Mining is known for its environmental impact and high energy consumption. The distributed ledger technology can also be implemented in an environmentally friendly way as in our case: We need just as much energy as your computer at home uses, when you access the Internet.

The supply chain transparency provided by our blockchain solution can also be used to inspect production conditions in terms of sustainability. On top of that, the ivault blockchain can be integrated into an existing supply chain management system to increase counterfeit protection. This is what we did for the Swiss company Golisan.

Supply Chain Fälschungssicherheit bei Golisan: Die Nahrungsergänzungsmittel von Golisan haben nun das ivault verified Label auf der Produktverpackung und je einen eigenen QR-Code auf der Etikette.

Supply chain management and counterfeit protection at Golisan: Golisan food supplements now have the ivault verified label on the product packaging and a unique QR code on each product’s label.

2. Scalable blockchain solution

Our blockchain for supply chains is scalable. We can perform 100,000 transactions per second when needed. In comparison, scalability in the crypto sector has become one of the biggest challenges, especially for Bitcoin and Ethereum. This is due to the somewhat outdated, energy-consuming proof-of-work algorithm. ivault, on the other hand, does NOT use this algorithm.

3. Cybersecurity (InfoSec)

With blockchain, data is stored in a decentralized manner, which increases cybersecurity immensely compared to other technologies. All entries are individually encrypted. This means that once information has been entered, it can no longer be changed or tampered with. This is the highest possible level of information security nowadays.

In comparison, most companies store important data on a centralized server, that is: all in one place. This server can easily be hacked – something we hear about almost every day. If it crashes due to a hacker attack, the company itself might no longer be able to access its own data. Costumers, on the other hand, complain that they cannot access the company’s digital services anymore.

Thanks to the distribution of data to several nodes (individual computers) in a global network such attacks are no longer possible with our blockchain application.

On top of being one of the most secure technology available so far, the blockchain is anonymous. We do not steal data from our users. More about the advantages of blockchain technology can be found here.

4. Supply chain transparency and traceability

Thanks to ivault, every production step in the supply chain is traceable. For this purpose, each entry is time stamped. The manufacturer knows at any time where a product is located, from the supplier to the distributor and the final destination, the end consumer. In this way, it can be easy to trace where counterfeit products infiltrated the distribution chain.

In this way, the entire supply chain will also be much more transparent. The modern end consumer thinks about manufacturing conditions, e.g. sustainability a lot. The manufacturer can use our B2B solution to provide the environmentally conscious consumers with the desired transparency regarding production conditions.

If a buyer scans the QR code on a Golisan product, he gets all information about the ingredients, our suppliers, etc. – full transparency. The Swiss company is thus unrivaled on the market for food supplement…

5. Consumer trust

All of this has a positive effect on the relationship with the customer as well. ivault is a new way of connecting, a connection between manufacturer and consumer. The blockchain-based communication channel can increase trust in a brand even after previous damage caused by counterfeiting. This can also help rebuild the companies’ image and increase brand awareness.

6. Damage reduction

Financial losses are reduced because counterfeit products can be detected much earlier – before any major damage is done. End users are also less likely to be harmed by cheaply produced imitations such as counterfeit drugs.

Corona Medikamente Fälschungen, Fälschungsschutz Supply Chain

Whether we talk about imitations of branded clothing contaminated with harmful substances, counterfeit medicines or faulty replicas of spare parts for motor vehicles or even airplanes: Counterfeit products have serious consequences for us and our entire environment. Solutions for supply chain transparency, traceability and counterfeit protection are desperately needed.

7. Counterfeit protection and prevention

The fact that it can be traced where the counterfeiters have infiltrated a supply chain also serves to prevent counterfeiting attempts. The efficiency of the blockchain in terms of traceability and supply chain transparency is an effective deterrent, because counterfeiters do not want to stumble into the spotlight of such a superior technology for counterfeit detection…

For companies like Golisan, who have already implemented our technology, this competitive advantage is very important. ivault enables them to build a new relationship of trust with customers.

For the competition, on the other hand, it is becoming increasingly difficult to make up for this deficit.

Upcoming speech at 2020 AIM Congress

 

A few days ago a personal invitation by Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, reached us. We are very pleased to announce CEO Arman Sarhaddar’s speech at the 10th Annual Investment Meeting in Dubai.

Blockchain AIM 2020: blockchain for supply chain and fighting the pandemic

Blockchain for supply chains: Register now for the the FC Session 8: “Keynote: Future of Blockchain and its Impact on Supply Chain and fighting the Pandemic?” on October 21, 2020 at 15:00 to 15:20.

“AIM Digital is the largest deal-making virtual platform for the global investment community launched by the UAE Ministry of Economy and the Annual Investment Meeting. With the theme “Reimagining Economies: The Move Towards a Digital, Sustainable and Resilient Future,” this major initiative is scheduled on 20 – 22 October 2020.

The very first digital edition of the Annual Investment Meeting will utilize virtual technology to generate, showcase, and facilitate the most attractive and secure investment projects and opportunities for investors from different parts of the world, providing boundless possibilities across diverse sectors leading towards economic recovery, transformation, and sustainability.”

Vault Security Systems AG is listed in the category “Future Cities” among this year’s speakers from renowned companies such as Siemens, Microsoft, Pfizer, General Electric, Philips, Agility, Cigna Insurance, Hyperledger and many more.

There are clearly no more words needed to explain the potential of our innovative application ivault. We hope you have the chance to take part in this great digital event.

 

ivault Top 10 Blockchain Technology Solution Providers 2020 – recognized by CIO Application.Vault Security Systems AG

CIO Applications
Top Blockchain Technology Solution Providers 2020

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Supply chain transparency and brand protection: Now it’s official. CIO Applications from Silicon Valley ranks ivault among the Top 10 best blockchain technology solutions of the year.

 

Vault Security Systems in CIO Applications' Top 10 Blockchain Technology Solution Providers 2020.

Vault Security Systems AG mit ivault™ in den Top 10 Blockchain Technology Solution Providers 2020 von CIO Applications

ivault was already referred to as one of the best blockchain ideas at the World Economic Forum WEF 2020 in Davos.

Now, the renowned magazine CIO Applications awarded Vault Security Systems AG with the blockchain solution ivault as one of the Top Blockchain Technology Solution Providers 2020. Our platform offers the highest transparency for supply chains and best product and brand protection to date by preventing the unnoticed entry of counterfeit products into the supply chain.

This blog article provides you with a brief summary. You can read the complete article by CIO Applications here:

Vault Security Systems: Transparency for Supply Chain and Protecting Valuables

ivault: Our patented Blockchain solution 

 

Almost all companies lose value in the market because counterfeit or stolen products become part of their supply chain without their knowledge. The low-quality counterfeit products then arrive at the upset buyers’ as supposed originals.

ivault is an efficient track-and-trace solution that enables the detection of counterfeits in the supply chain. Using distributed ledger technology, ivault makes a completely transparent, traceable and therefore the most secure supply chain possible.

In the interview with CIO Applications, Arman Sarhaddar, CEO and founder of Vault Security Systems, describes how ivault came into being: After he himself had been robbed, he came up with his idea:

“What if I put every physical item into a database with serial numbers? I would then have all the information recorded. With that idea being patented, it lead to the formation of the company.”

Vault Security Systems AG now helps manufacturers of clothing, electronics, pharmaceuticals and more…

 

How does ivault help to overcome the challenges that companies face?

 

The global problem is the loss of billions of dollars in revenue on the part of large companies and, on the other hand, the endangerment of human lives by counterfeit products that do not comply with required security standards and, especially in the case of counterfeit drugs, can have fatal consequences.

That’s why we have developed a blockchain solution that uses distributed ledger technology to secure the supply chain and is easy to use for both companies and consumers.

ivault helps companies to track their products through the entire supply chain from manufacturing to end users by recording and time-stamping all transactions. Once a transaction has been registered, it cannot be changed by anyone, guaranteeing the authenticity of the goods.

Essentially, this minimizes the likelihood of counterfeits entering the supply chain undetected.

Understandably, counterfeiters will avoid companies that have the ivault blockchain solution implemented into their supply chain, because they will not make any profit anymore by infiltrating these companies’ supply chains. It is likely they will seize to sell counterfeits via illegal distribution channels too, because every buyer can easily check via the ivault app on every smartphone, if a product is a fake.

Companies can easily implement this blockchain solution, because the existing databases in their supply chains can continue to be used.

 

Technical characteristics and functionality

 

ivault is accessible via web browsers. The product information is registered either manually or by using a QR code, NFC chip or RFID chip. The information includes material and ingredients used in the product, as well as data on their origin.

From production to the end user, every detail is recorded with a time stamp to bring transparency to the supply chain. If someone wants to access this information, they can quickly scan the product with the ivault app on any smartphone and check all the product details on the website.

This means that the end user can also easily verify the authenticity of a purchased product. In addition, ivault enables end users to protect private property and assets. With the global search engine ivault, anyone can find lost or stolen items in real time.

 

GOLISAN-safran-ivault-verified

We have already announced one of our use cases in the past: Golisan protects its supply chain with a blockchain solution from ivault that is individually tailored to the dietary supplement manufacturer. The valuable saffron extract is one of the most counterfeit-prone spices of all. The higher the value of a product, the more likely it is to be counterfeited. For more technical information, you can read our blog article with a video explanation of the functionality in detail.

 

What’s next for Vault Security Systems AG?

 

We are currently focusing on supply chain protection and there are numerous ways in which we can use our blockchain solution.

For example, in the automotive industry, our blockchain solution will have a huge impact. In the case of Ferraris and Porsches, which cost around $5 to $6 million, buyers want to ensure that every part in the car is an original. Our platform gives them the security they need.

We are also working to extend the reach of our platform to various sectors, including medical device manufacturers and pharmaceutical companies. A medical device company, for example, lost about $100 million a year to counterfeit products. ivault can help quickly identify counterfeit products in the supply chain and thus help rebuild a company’s reputation.

There is an urgent need to bring transparency into the supply chains of pharmaceutical companies, as they have massive problems with counterfeit drugs. We have previously reported on this in detail in connection with the ongoing corona crisis.

Moreover, human lives are at stake here.

In the worst case, a counterfeit medicine can cause more damage than a disease itself. We are therefore aiming to expand our platform within the healthcare industry within the next year. Geographically, we want to bring our blockchain solution into the European Union, the United Kingdom and South America.

Coronavirus: Eine Vielzahl von Tests und Studien zur Umwidmung bereits zugelassener Medikamente werden durchgeführt. Diese könnten bereits gefälscht werden.

Coronavirus Prognosis 2020 – Part II
5 Theses on Counterfeit Drugs

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In our last blog post we provided a detailed forecast on counterfeit drugs in view of the current crisis caused by the outbreak of coronavirus. Here are some additional thoughts, summarized in 5 theses on coronavirus and counterfeit drugs… as well as the blockchain.

With the blockchain, companies can not only protect their supply chain against counterfeit drugs. In addition, everyone could easily check with their smartphone whether a purchased product is original or fake.

With the application of blockchain technology in the pharmaceutical sector, Europe can now seize the opportunity to become a global blockchain pioneer. CEO Arman Sarhaddar’s contribution to the future of a Blockchain Europe has now been published by the renowned blockchain news platform Industry of Things as well.

The recent corona-apps to donate data should also be based on blockchain technology, as this is the only way to ensure optimal data security and protection against hacker attacks.

coronavirus Heilmittel coronavirus impfstoff, corona arzneimittelfälschungen, counterfeit drugs

Battling coronavirus… and counterfeit drugs that have not yet been thought of.

5 theses on drug counterfeiting in 2020

 

Thesis 1: Counterfeit drugs of the year 2020

 

Vaccines and drugs to treat corona patients will be the drugs of the year… and so will counterfeit drugs.

The examples of Viagra and antibiotics (see below) show that popular and urgently needed drugs are counterfeited particularly frequently, of course. The demand for the remedies against coronavirus is huge and the supply will inevitably lag behind.

For even if all conceivable production facilities are mobilized and pharmaceutical companies work together instead of competing with each other (as is usually the case), production will need one thing above all: time.

While the first million, let alone the first billion, of drugs are produced, at the same time counterfeiters will produce imitations and counterfeit drugs cheaply on a massive scale. These can quickly be sold online through illegal distribution channels.

Moreover, as soon as the first corona drugs leave production, the counterfeiters will be able to infiltrate the supply chains of pharmaceutical manufacturers and sell potentially dangerous counterfeit drugs in the legal distribution chain.

Fake drugs could potentially cause more damage than the coronavirus itself. But it is not only human lives that are at stake. The producers of the coronavirus drugs are only partially rewarded with fame and heroism, because the counterfeit drugs, that made it into the legal distribution chain, will cause massive damage to their image, which will compensate for every good deed.

 

Thesis 2: Counterfeiting market in developing countries

 

On the counterfeiting market of developing countries, cheap counterfeit drugs appear as unrivaled “better” offers.

The demand for coronavirus cures will come from all countries equally and counterfeiters will proceed exploiting the poor. They are already taking full advantage of the counterfeit market in poor countries:

About 30% of the drugs in Asia or South America and up to 50% in Africa are counterfeit drugs.

Poor countries have many loopholes, such as the complete lack of import controls due to lack of personnel in some cases, through which counterfeit drugs can be distributed without any difficulty.

Counterfeit drugs can easily be offered at a lower price. For poor countries and many of their institutions, these seem to be “better offers” and the originals in comparison are no longer a competition.

coronavirus Heilmittel coronavirus impfstoff, corona arzneimittelfälschungen

Every 2nd or 3rd drug in Africa is a fake! Taking medicine in poor and developing countries seems to be a game of chance. Whoever only catches the despicable fake without any active ingredient can be considered lucky. According to the WHO, 60 % of all counterfeit drugs contain no active ingredients, while about 16 % contain completely different active ingredients. These are mainly counterfeit antibiotics – the most needed medicines.

 

For comparison:

Industrialized nations are safer from counterfeit drugs due to appropriate drug law controls and close cooperation between manufacturers, wholesalers, pharmacies and the authorities. Nevertheless, we do not remain unaffected by large-scale counterfeiting crime: In the United States, around 1.5 million counterfeit birth control pills containing too little active ingredients were seized.

Another example is Sildenafil, better known as Viagra: In 2006, 2.5 million fake Viagra pills were seized in the EU alone. In 2007 there were 3.4 million. [Source]

The “professional” counterfeiters who have successfully infiltrated legal distribution channels in Europe or the USA before will be those to occupy the coronavirus niche of the counterfeit market.

 

Thesis 3: Drug repurposing: Using the already approved to fight corona

 

The counterfeiters may already have started to manufacture counterfeit drugs of those pharmaceuticals that are eligible for repurposing.

Thanks to global supply bottlenecks, the trade in counterfeit medical equipment is already increasing dramatically.

In addition to the development of new drugs against the coronavirus, a large number of clinical studies are being conducted to repurpose existing drugs like antiviral medicine, that originally has been developed to treat other diseases.

This is because it is more likely that a drug that has already been approved will bring the desired cure first. A completely new drug needs much more time to be available to the general public.

Coronavirus: Eine Vielzahl von Tests und Studien zur Umwidmung bereits zugelassener Medikamente werden durchgeführt. Diese könnten bereits gefälscht werden.

On average, the development of a new drug costs approximately 1 billion euros, because it has to go through a much longer process: from development and clinical studies, through drug law controls and initial approval, to production… which has to begin with the establishment of the production facility. A drug that has already been approved does not have to go through all of the above steps again, a production facility is ready to use and a certain amount of a the drug is already available. [Source]

Currently, fake COVID-19 drugs are no longer an exception on the internet. But mass distribution of counterfeit drugs will begin when people are officially informed that an effective remedy against the coronavirus is available.

And this process of information via media and news has already begun. For example, it has become known that the common Japanese flu drug Avigan has a very good chance of being effective against coronavirus – and Germany has already stocked up on millions of packages.

Of course, this is what the counterfeiters know as well, and they might have already started producing. Counterfeit drugs of these promising drugs can easily brought to the market thanks to the knowledge conveyed by the media and news.

Just think about it for a second: How many people have already searched the Internet for a way to purchase a pack of Avigan? And how much are they willing to pay to get such a promising drug?

 

Thesis 4: The lack of cybersecurity 

 

The counterfeiters will find it easy to get the necessary information from pharmaceutical companies and their distribution partners because of a lack of cybersecurity.

For one thing, the problem is the use of computers at home, from which many home office employees currently access the internal servers of companies. But, given the crisis, those who can stay home should of course stay home.

At this point, companies must ensure that information security and data protection is guaranteed on every PC in every home office.

However, it is not only home computers, but also the trend towards corona apps, which has now arrived in Germany. The Robert Koch Institute (RKI) provides an app to “donate data” and emphasizes that it is a voluntary donation of personal data, which is stored and evaluated pseudonymously using an user ID for each individual.

However, the controversial measure has prompted criticism from data protection experts. Although some degree of privacy is guaranteed, the collected data is stored centrally and is therefore not sufficiently protected against hacker attacks.

A blockchain solution could help by storing the health-related personal data in a decentralized database and thus make the data unhackable.

 

Thesis 5: Blockchain for supply chains

 

Europe has a chance to become the leader in the field of blockchain now – by using blockchain to make supply chains counterfeit-proof.

Arman Sarhaddar, the inventor of the ivault Blockchain, already reported for Blockchain Insider about the chances of Europe to become a global blockchain pioneer. Now Industry of Things has published his insights as well. We already published a translation of his article for our English readers here: Europe as blockchain pioneer (with ivault leading from the front)

It is the second contribution of our CEO on the renowned platform for blockchain experts. In the first one he reported on counterfeit products in the supply chain:

“Tracking and tracing of ingredients is crucial, especially in the medical sector. […] Customers of medicinal products and pharmaceuticals want to be sure that they have not purchased a counterfeit. For them, the quality of the ingredients plays an essential role and in case of damage, the weak point must be clearly identifiable.”

Europe now has the opportunity to take the role of a global blockchain leader by implementing the most intelligent solution for the Supply Chain Management of pharmaceutical companies: Blockchain Technology.

This technology not only offers the most effective protection against counterfeit drugs entering the supply chain. It also simplifies the detection of counterfeits and the tracing of the weak spot, as it provides the highest possible supply chain transparency for the manufacturer.

But that’s not even all of it: On top of that, every buyer could check the authenticity of a purchased drug by scanning a QR code on the product packaging via an app on his or her smartphone. This way, each individual can tell if a drug could be a fake.

For comparison: Current methods for increasing protection against counterfeits are intelligent and complex – after all, counterfeiters should not succeed in producing authentic counterfeit drugs – but they are not necessarily practical and neither are they very efficient.

1. One example is the counterfeit protection securPharm: 

“During the production process, the marketing authorisation holder affixes the safety features to each pharmaceutical package. The data of the unique identifier (serial number, product code, batch number, expiry date) are applied to the pack in clear text and in the form of the Data Matrix Code and uploaded to the centralised database of the pharmaceutical industry. Before the pharmaceutical is dispensed to the patient, the Data Matrix Code is scanned for authentication, thereby reconciling the pack data with the data in the system.”

The one big mistake is that the data is stored centrally and can therefore be easily manipulated by sophisticated hackers. Counterfeit drugs in the legal distribution may not be recognized because the data has been tampered with.

Blockchain, in contrast, stores data in a fundamentally different way: data is distributed among nodes (computers) in a global network. This is the key feature of Blockchain Technology: It is a decentralized database.

Thus Blockchain creates a much higher level of information security than any technology before. Decentralized databases are virtually unhackable. All entries are individually encrypted on the computers, changes must be confirmed by all computers in the system, so that data cannot be manipulated anymore.

2. Merck is protecting products with Securalic Reveal:

“Securalic® taggants use hidden markers to authenticate products from the inside out. This smart approach to anti-counterfeiting involves concealing tiny identifiers inside a variety of materials that tell people where the materials really come from. It’s a bit like giving products or even materials like plastics, coatings, or inks their own unique fingerprint. And because all of our taggants are strictly monitored and handled through a restricted supply chain, it is virtually impossible for unwanted parties to even know they’re there.”

The microscopically small particles can be added, for example, to printing inks for product packaging or other materials. But how practical is such a process?

BUT it requires a special detector device to check the product for authenticity. This device must be in the possession of producers, wholesalers, small pharmacies and even the individual buyer to really guarantee product safety – which is neither very realistic nor a practical solution.

On top of that: If a fake turns up how can you trace back where it came from?

With the blockchain, in contrast, it is possible for each individual consumer to check a product’s autheticity on every smartphone. Thus blockchain not only ensures optimum brand protection, but also product and patient safety.

Such a high level of protection against counterfeits can only be provided by the blockchain and nothing else. The blockchain thereby serves as an effective deterrent against counterfeiting crime, because it is easy to trace back where counterfeits have entered the supply chain.

To our knowledge there is no other system that is more practicable and effective. The only hurdle left for Europe to position itself as a blockchain leader: We must act NOW.

 

Arzneimittelfälschungen Coronavirus fake drugs and counterfeit pharmaceuticals

Coronavirus Prognosis 2020 – Part I
From Fake News to Counterfeit Drugs

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Fake news about the coronavirus is circulating as well as fake food supplements and the first counterfeit pharmaceuticals, which for example make claims of the sudden discovery of a miracle cure for the novel COVID-19 virus. They brazenly exploit the uncertainty and fear of many people in the current situation. But a much greater danger awaits us…

This forecast deals with the global problem of trade in counterfeit drugs: The marketability of the first coronavirus cures and vaccines, on which researchers and doctors are working intensively, will not only bring hope and healing, but will also open up an extremely profitable niche in the counterfeiting market.

Counterfeiters will soon find ways to imitate original coronavirus medicine and sell counterfeits both online and through the legal distribution chain. The following 3 facts support this forecast and more than clearly demonstrate the danger:

Arzneimittelfälschungen-Coronavirus

Coronavirus cure or coronavirus vaccine – when will they be ready for the market? And when will the first counterfeit drugs appear?

3 facts on counterfeiting and where it will get us

 

1. Trade in counterfeit drugs has long been an established and highly professionalized organized crime, responsible for billions in losses and deaths.

 

Trade in counterfeit drugs has become one of the biggest global problems: According to the World Health Organization (WHO), about 15 percent of all drugs worldwide are suspected to be fake, in Asia and Africa the figure is as high as 30 to 50 %. In German pharmacies and clinics, it is estimated that almost every 100th drug could be counterfeit.

In the EU member states, a considerable increase in trade in counterfeit drugs has been observed in recent years – despite strict regulations. In Europe alone, the pharmaceutical industry loses more than 10 billion euros a year, according to Europol and EUIPO (losses of retailers such as pharmacies not included):

EUIPO – The economic cost of IPR infringement in the pharmaceutical industry

Die EUIPO veröffentlichte diese Statistik:Die EUIPO veröffentlichte diese Statistik: Für die EU als Ganzes wird die Gesamtwirkung von Fälschungen auf 4,4% des Umsatzes oder 10,2 Milliarden Euro geschätzt. Dies ist eine direkte Schätzung der Umsatzverluste, die den rechtmäßigen Herstellern und Großhändlern von Arzneimitteln in der EU jedes Jahr aufgrund von Fälschungen entstehen.

EUIPO published these figures: For the EU, the total impact of counterfeit drugs is estimated at 4.4 % of sales or 10.2 billion euros.

 

For the criminals profits are much higher than in common drug trafficking. However, theft and resale of drugs and counterfeiting drugs are no longer the exclusive domain of dubious online providers. In German pharmacies, too, more and more stolen drugs, decanted, diluted and manipulated, are reappearing. In particular, more and more drugs are being stolen from Italian hospitals, such as the cancer drug Herceptin from Roche in 2014.

The manipulated Herceptin ampoules eventually turned up in German pharmacies. Counterfeiters were also able to smuggle these counterfeit drugs into Finland’s and Great Britain’s legal distribution channels seemingly without any difficulty. And this means huge sums were falling into the counterfeiters’ hands: 150 mg of the complex preparation against breast cancer is worth about 850 €!

The cancer drug has a biological half-life of 2-12 days and must be transported at a temperature of -20°C. It is rather inconceivable that the counterfeiters have paid attention to the correct storage temperature and corresponding transport conditions, so that the active ingredient contained will have lost most of its potency.

The counterfeiters have already built up a highly “professional” network – not only online – which seems to function smoothly. They also seem to be far ahead of the current, sometimes frighteningly outdated security systems of manufacturers and legal sellers. These experts will certainly not hold back in selling counterfeit coronavirus pharmaceuticals, because the estimated profit could exceed all previous prospects.

There is an enormous need for action at this point and it is precisely in relation to the coronavirus crisis that action must be taken NOW. Appropriate precautions must be taken as a matter of urgency even before the first drugs and vaccines against coronavirus will leave production, so that the counterfeiters cannot shamelessly exploit this situation and – in the worst case – lead to more fatal incidences.

In addition to the billions lost and the enrichment of the criminals at the expense of the health or even lives of victims, the companies’ reputation is affected as well. In the past, doctors and pharmacists often switched to preparations from other manufacturers as soon as cases of counterfeit drugs became known. The image damage caused by counterfeiters’ activity is clearly not the fault of these companies, but it takes years, perhaps decades, to rebuild their reputation usually with more investments in marketing and advertisements.

But in the meantime the counterfeiters do not sleep.

 

They will take one drug after the other for counterfeiting purposes and obviously it can hit the same company several times (and more certainly, it will, since counterfeiters will target them again and again thanks to their knowledge about how to steal products and reenter a company’s supply chain). Just take a look at the websites and landing pages of the big pharmaceutical companies (31.03.2020):

  • Bayer is warning of possible medical counterfeits in the legal distribution chain (in addition to counterfeit drugs sold through unauthorised distribution channels): 

“Warning about counterfeiting in the legal distribution chain:
Xarelto® 20 mg film-coated tablets in pack size N2 (28 tablets), lot BXHVHC3 in the Polish-Slovak style, are most likely counterfeit. If you have such a package, please contact us immediately.”

  • Pfizer does not provide information on counterfeit drugs on its German website. But it is no secret that the popular blue Viagra pill – Pfizer’s successful recipe for treatment of erectile dysfunction – is the most faked drug to date. Or at least one of them… The German newspaper BILD expresses it – as always – in a particularly radically way: “Rat excrements and lead paint in fake Viagra pills! That’s how dangerous the plagiarisms are.” Unfortunately, in many people’s minds, Pfizer has become the one big pharmaceutical company that represents the negative side of the pharmaceutical industry as a whole… The well-known company is struggling with massive reputation damage. Therefore, it is sometimes completely overlooked when the company is doing something good.
  • More current examples you will find among the Food and Drug Administration’s list: FDA alerts.

Both Bayer and Pfizer are on the front lines in the fight against the coronavirus. Bayer is already warning about criminals who are taking advantage of the current situation and the fear of the public on its landing page for counterfeit drug warnings. Pfizer outlines a five-point plan to battle COVID-19, calling on the entire pharmaceutical industry to cooperate in battling coronavirus instead of continuing to compete with each other. Together with BioNTech, they are also developing a vaccine against COVID-19.

The counterfeiters are unlikely to hesitate to take advantage of this… They have already had great success with Pfizer products and can easily go for it again!

2. The fear and insecurity of people caused by the coronavirus pandemic is already being exploited by dubious online sellers.

 

Apart from false reports on the coronavirus pandemic, that are based on political or religious interests, fake news have one intention in particular: to promote sales. Warnings of dubious health promises are also prominent online but these are few compared to the vast amount of sellers that are trying to take advantage of people’s fears.

Among others there is the false claim, that the “active ingredient chlorine dioxide” helps against coronavirus. This is a conventional bleaching agent, the oral intake of which can be very dangerous and harmful to human health.

The coronavirus market is booming for food supplements as well, as people are insecure and are looking for complementary preparations to support their immune system in its defence against the virus. Vitamin preparations and other products are being counterfeited. The new Golisan blog entry is mainly about dietary supplements that are aggressively advertised with the keyword corona.

“Other products are also aggressively advertised with corona hashtags
… from sweaters and socks to handmade Disney articles on Etsy – on this platform, for example, products relating to coronavirus have already been removed. The major marketplaces Amazon and Ebay are taking action against the corona traders as well. Amazon has already blocked and deleted tens of thousands of corona articles and sellers, that are trying to make a profit out of the uncertainty of customers by advertising their products with usurious prices.”

But the petty criminals, from food supplement counterfeiters to sellers on Social Media, Etsy and others, are far from being the real danger. These examples only show that all over the world there is a great willingness to engage in dubious online trading and turn a profit out of the crisis.

The real danger, however, is that the big counterfeiters will soon take the initiative. And this is only half a prognosis, because it’s a fact, that they are already doing so:

@europol.eu is posting about the current situation: thousands of online sellers and counterfeiters are trying to exploit people fears of coronavirus

Europol is posting about the current situation: thousands of online sellers and counterfeiters are trying to exploit people’s fears of getting sick and infecting loved ones. Unfortunately, there a only few such posts that are almost completely drowned in fake news and exploitative advertisements of face masks, disinfectants and a few weeks ago even pasta, that has been traded with like it was cocaine.

 

3. The first coronavirus-related counterfeits already became known: Counterfeit medical equipment is now a top seller online!

 

Coronavirus has already opened up this very profitable niche in the counterfeiting market: Criminals use the high demand in hygiene products driven by the coronavirus outbreak as a new business opportunity. The trade in counterfeit protective masks and other medical accessories has taken on radical, hardly scalable proportions in the past few weeks. According to Europol, about 34,000 counterfeit surgical masks were recently seized during a worldwide police operation.

The counterfeiters also fake antiviral drugs, for which, however, no effect against coronavirus has been proven so far. Europol has already seized 4.4 million units of illicit pharmaceuticals worldwide and 2.500 links have been taken down (including websites,  online marketplaces, adverts and social media).

But cybercrime doesn’t stop there. Many employees of large companies currently work on their less well-secured home computers and access employers’ networks from there. The lack of cybersecurity makes it much easier for counterfeiters to gain access to confidential data and valuable internal information during the coronavirus crisis, which can be misused in every conceivable way. This can be as easy as stealing the graphic designers’ coronavirus pharmaceutical packaging design.

The trade in counterfeit medical equipment not only demonstrates how fast counterfeiters can act, but also demonstrates the real danger: How many doctors in hospitals are unknowingly working with counterfeit masks that are permeable to the virus, at this very moment? How many medical assistants will infect themselves and others through fake equipment?

How many human lives are at stake?

Conclusion

 

What we need is a revolution in the fight against counterfeiting and an efficient solution that will enable us to detect counterfeit products such as counterfeit drugs, and, on the other hand, to verify the authenticity of original drugs and prevent major damage.

Arman Sarhaddar, CEO and Founder of Vault Security Systems AG and the new brand ivault, is sure that with the innovative application of blockchain we can drastically reduce the frightening numbers of counterfeit drugs. Many pharmaceutical companies already have QR codes on their packaging, but what is missing is the registration of their products in the blockchain, which offers the highest possible product safety and data security.

If Europe wants to be a blockchain pioneer, now is the time to implement a blockchain solution to solve this problem, because Blockchain technology does indeed provide the optimal solution.

 

Arman Sarhaddar, inventor of the innovative product ivault Blockchain Insider features our startup Vault Security Systems AG as one of Europe's pioneering blockchain companies.

Europe as a Blockchain Pioneer (with ivault™ leading from the front)

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In short: Earlier this week Arman Sarhaddar, CEO and founder of Vault Security Systems AG, published a guest article on a leading German news website on blockchain. Our blog entry will provide you with a detailed summary of the 3 things that are being focused on in his German article here.

Arman wrote, the principle of double-entry bookkeeping was invented over 500 years ago. It was intended to bring more transparency and better traceability. The new method revolutionized accounting and paved the way for global capitalism. However, an intermediary was needed to track and confirm the entries of the two parties involved. Blockchain technology now wants to stand in for exactly this intermediary party.

Arman Sarhaddar, inventor of the innovative product ivault Blockchain Insider features our startup Vault Security Systems AG as one of Europe's pioneering blockchain companies.

Arman Sarhaddar – inventor of the innovative product ivault.
The renowned German website blockchain-insider.de features our startup Vault Security Systems AG as one of Europe’s pioneering blockchain companies next to Telefonica Germany and Amazon Web Services Germany.

What has already been implemented and can be described as established in the financial sector, will soon be successfully transferred to any industry that relies on an auditor, certification or intermediary in any process: from accounting and auditing to origin verification and claim handling. They all start to benefit from solutions based on blockchain technology.

It is essential to have the unquestionable assurance of using an authentic product in the case of medicines and medical products or high-priced branded goods – to name just a few applications that have already proven themselves in practice. Blockchain can provide complete traceability of any supply chain, thus giving all parties the necessary security.

1. Not everyone needs detailed knowledge about how blockchain works

 

The fact that a large part of the population does not have a precise idea of how the distributed ledger technology works is not a problem: it is even a basic principle of the blockchain that its application happens in the background, as a basis on which processes and user interfaces are built on. What is important is not how it works, but that it does work and that it makes things easier, faster and cheaper.

You can read in our last blog entry for example how efficient the ivault blockchain will be in taking action against counterfeiters and the counterfeiting market.

2020 could be the year in which Blockchain is first used on a large scale. Many solutions that improve and innovate processes and methods are ready for the market or will be very soon, as we were able to see at the World Economic Forum (WEF) 2020. There was one jumping point in particular that was discussed among blockchain and IT experts at the annual meeting there: For the technology to be fully adapted, it is crucial that the various solutions become interoperable.

On top of that, the World Trade Organization (WTO) has already outlined the need for interoperability in a position paper:

Can Blockchain revolutionize international trade?

It states that the blockchain community is aware of the urgency and is actively seeking technical solutions, some of which are now being tested and further developed. Also our impression of the WEF confirms that in the coming years different blockchains, both public and private, will become compatible with each other. The possibilities of a unified blockchain ecosystem will be almost unlimited and will influence every industry sector.

2. Legal hurdles in Europe

 

Before this happens, the comprehensive application of blockchain technology, especially in Europe, is still facing some hurdles. One of the major challenges lies in the current lack of legal certainty. The fact that data are not stored centrally, but rather decentralized (that is they are distributed in a network of computers), is a core feature and basic requirement of distributed ledger technology.

Once stored, data cannot be changed. This is the main advantage of the technology, because there is no need for a third party in whom all market participants must trust and there is no central storage location that can be attacked by criminals or paralyzed by technical faults. Product safety, information security and cybersecurity are thus provided by blockchain technology.

However, in the EU the right to have stored data corrected and deleted is enshrined in the DSGVO. This collides with the revision security of the blockchain, in which subsequent changes are fundamentally excluded. In Germany, the Federal Ministry of Economics and Technology is aware of the problem and is working with the digital association Bitkom to find solutions. The Swiss Federal Council is also actively working to further strengthen the country as a blockchain center. At the end of 2019, a draft law has already been passed which, among other things, will increase the legal security of the blockchain.

3. Early blockchain training provides a competitive advantage

 

Not only governments are becoming increasingly aware that blockchain will become a key technology in the future. Companies are eagerly trying to build up expertise in this area as well. It is therefore hardly surprising that blockchain and cybersecurity expertise might be one of the most sought-after applicant qualifications this year. The demand for experts is constantly growing – but university degrees and certificates in blockchain technology are still a rather new thing.

Profiling tools used by HR professionals are therefore hardly able to assess the expertise of specialists, which makes it even more difficult. With external training programs, managers can promote the further training of their employees and build up competencies in-house.

Companies that recognize and meet this need early on will gain a real competitive advantage, especially over American and Asian companies. For this, we must cast off our initial scepticism and open ourselves up to the new technology. To get there, we definitely need more concrete examples of applications to clearly communicate the benefits of blockchain technology.

For less technology-savvy decision-makers, we should focus on communicating efficiency gains rather than dwelling on the technical details. You can read about the use case we are currently working on here. And for more detailed updates, you can listen to what CTO Martin Beyer says about the application here.

Both the individual European countries and the EU are actively working to promote blockchain technology. The need to adapt the legal framework so that Europe can play a pioneering role in this field has been recognized by the legislators. It is up to the decision-makers in companies to build up expertise, identify possible usage scenarios and efficiency gains and take steps to implement these in reality. All in all, if the legislative adjustments and the innovative energy of European companies interlock, Europe will continue to assert itself as a driving blockchain force.

PS: To travel to Davos is always worth it for these views of Switzerland alone.

Blockchain WEF Davos
ivault™ at World Economic Forum 2020

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WEF 2020: Once again ivault was represented at the World Economic Form Annual Meeting in Davos. Arman Sarhaddar, CEO and founder of Vault Security Systems AG, CTO Martin Beyer and Project Manager Philipp Röhner visited WEF 2020.

“The atmosphere among the blockchain and IT experts is very positive. Everyone is looking forward with excitement. Many solutions that improve and renew processes and methods are already market-ready or will be very soon. Blockchain experts are also strongly represented at the WEF 2020. The fact that there is more than just talk is demonstrated, for example, by the consortium of partners from all sectors on the governance of digital currencies, which was initiated this year.”
– Philipp Röhner, Project Manager, Vault Security Systems AG

Davos WEF2020: Arman Sarhaddar, CEO und Founder, mit Philipp Röhner, Project Manager, Vault Security Systems AG. Foto: Martin Beyer, CTO.

Davos WEF 2020, from left to right: Arman Sarhaddar, CEO and Founder, with Philipp Röhner, Project Manager, Vault Security Systems AG. Foto: Martin Beyer, CTO.

Insights from WEF 2020, Davos

 

Once again for us the WEF 2020 in Davos was a great chance for networking and getting to know many other blockchain experts among renowned companies and startups. For example, we met Alex Panas, Director of Business Development of LATOKEN, who stated that, in his opinion, our application was the best idea he heard about at WEF and we are on the right track.

“The 50th  anniversary of the WEF was very positive for ivault, since we not only received numerous confirmations that our product fits well in the world we are living, but also excellent connections have been made.”
– Arman Sarhaddar, CEO and Founder, Vault Security Systems AG

After getting to know so many great minds and of course meeting old friends and partners from WEF 2019, we are happy to have planned further meetings in the near future. We will post about it in the blog here.

All in all, blockchain is taking off but is still hampered by a negative image and regulatory issues. The word blockchain is still conjuring up associations with crypto criminality in most peoples’ minds, which is one of the key challenges for pioneers that are using blockchain technology in quite different ways today. Nonetheless, blockchain will change society in the near future.

One of the most important topics at WEF 2020 was environment and climate, next to the introduction of a global digital currency. It also has a major impact on the blockchain scene. There were some presentations of companies that directly address the SDGs (Sustainable Development Goals), social or ecological problems. As a solution provider for the fight against crime and counterfeit products, which are often highly polluting, we are therefore in good company with ivault.

PS: To travel to Davos is always worth it for these views of Switzerland alone.

PS: To travel to Davos is always worth it for these views of Switzerland alone.

More information about ivault

 

ivault provides access to the world’s first database platform and search engine based on blockchain technology to combat and solve counterfeiting and theft crimes on a global scale. There is an international patent for the lost and found concept in the pipeline.

 

1. Lost and found: ivault for every single person

 

In the past only a small part of the population with the appropriate know-how was able afford security for assets, information and property. In the future ivault will make this level of security available to everyone and – even more important – affordable for everyone.

Currently, there is no application to easily report items as lost or stolen in real-time. Therefore, it is difficult to find these items again or to return found items to their rightful owners. With ivault users can now easily register their assets – such as smartphones, watches, laptops, bikes, cars and anything else – in the blockchain via the ivault app. Those who have been robbed can search for them.

The ivault database can be accessed freely at any time and from anywhere. Whoever identifies and reports a lost or stolen item will be given a finder’s reward.

The ivault blockchain protect’s your belongings and provides for data security. Only you can see what information you stored in your personal wallet on the decentralized server. The blockchain is hacker-proof and your data cannot be manipulated anymore. You can always show proof of ownership and on top of that check if a product you bought is an original with the ivault app.

 

2. Counterfeit and fake products: ivault for businesses

 

Up to this date, traditional logistics and data management systems have not been able to prevent counterfeit and stolen goods from entering the supply chain. The resulting consequences are enormous: massive financial losses for companies, a ruined reputation for brands, and perhaps most seriously, fatal incidents for consumers in the medical sector.

By implementing distributed ledger technology (blockchain) in the supply chain management, all actions performed can be recorded, tracked and time-stamped – 100 % supply chain transparency from the beginning of production to the end consumer. Once a transaction has been recorded in the blockchain, it can no longer be changed. Thus the authenticity of a product can be guaranteed.

For brands, the ivault blockchain can help to reduce the risk of counterfeit and/or stolen goods entering the supply chain. For the users it becomes much easier to prove their ownership clearly. Thereby manufacturers offer buyers optimum protection.

Even if a consumer resells luxury goods to a second-hand shop or a private buyer, the change of ownership is recorded in the blockchain. The buyer is thus assured that the seller is the rightful owner of the item and that he is buying an original product.

Would you like to know more about how ivault.app works? Leave a comment in the comment section below. We are looking forward to answering your questions. You can also subscribe to the ivault newsletter here for the latest news.