Posts

Counterfeit drugs 2021: Statistics and Facts on how Blockchain can fight the pandemic

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.

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/

 

3 Digital Trends in 2021 for the Blockchain Revolution we need

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 trustivault 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:

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 ivaultivault 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.

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

Future of Blockchain Technology in Supply Chain Management 2021

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:

 

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

Supply chain: Counterfeit protection with blockchain – a competitive advantage?

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.

 

Arman Sarhaddar iVAULT at InsurTech Summit, Istanbul, Turkey

Inspiring speech about ivault at InsurTech Summit 2019

In short: At the 2019 Global InsurTech Summit in Istanbul, CEO and founder of Vault Security Systems AG Arman Sarhaddar, gave an inspiring speech about the ivault blockchain and the future of the innovative use of distributed ledger technology. The event was a great success for all of us and the compliments stacked up quickly… Read this article in German here.

Click here to watch the interview on LinkedIn

InsurTech Summit 2019: the ivault speech

 

In the last blog entry you were given a concrete example of what the cooperation between Golisan GmbH and ivault looks like. Companies can now protect their supply chain from counterfeit products in a very simple way and thereby guarantee customer confidence in the authenticity of their optimally protected products.

After visiting the World Economic Forum in Davos at the beginning of 2019 we also mentioned that parts of the management team were going to Istanbul to attend another big event: the Global InsurTech Summit 2019 in Istanbul.

Vault Security Systems at the 2019 InsurTech Summit in Istanbul

ivault @ Global InsurTech Summit 2019 in Istanbul, Turkey

As one of the speakers, Arman was once again able to eloquently and charismatically explain the ivault blockchain’s enormous market potential to his listeners. It brought people closer to the many advantages and opportunities that users of our global platform for the protection of material goods will benefit from when they register their products or possessions. This applies to large corporations and businesses as well as to private users who want to protect their luxury goods like watches, cars, or original works of art.

The InsurTech Hub Istanbul team then wrote:

Dear Arman,

We would like to extend our sincerest gratitude towards you for your motivational speech during the conference held in Istanbul. Your views on developing an effective insurtech strategy and its execution have broadened our horizons.

Please accept our appreciation for such a commendable job. Every participant will take your words into practice. You have covered essential elements of insurtech strategy and your description of how to execute it is remarkable.

We once again would like to thank you for such a wonderful speech and hope to get a chance to hear such speeches from you in future also.

Luckily, this interview from the InsurTech Summit was posted to LinkedIn a few days ago. So we are able to gain some insights without having been there. Arman’s keynote presentation on topics such as ivault FinTech or InfoSec (information security), and cybersecurity was not the only focus of the team’s visit to Turkey. In addition, we also wanted to forge new contacts with interesting people who also represented their companies there.

Photos of the event can also be seen here.

iVAULT @ Global InsurTech Summit in Istanbul, Turkey

ivault @ Global InsurTech Summit 2019 in Istanbul, Turkey

But after this successful appearance the founder and his company hit the ground running and will soon move on to the Kapsch Security Day 2019 on 25 April 2019 in the Aula of Sciences in Vienna. This event deals with current security threats, as well as technological innovations and trends in the field of physical, organisational, and IT security. As you can see, it is an event ivault must attend.

So, in case you did not make it to Istanbul, here you have another opportunity to meet Arman Sarhaddar in person. But, if you don’t make it this time, your next opportunity will certainly come sooner, not later – guaranteed!

What is your opinion? Did you attend the InsurTech Summit in Istanbul as well? What was your impression? In your opnion, what other businesses should be using the ivault blockchain to protect their supply chain, so you can trust their products? Join in the discussion and leave a comment. We will respond soon.