Arman Sarhaddar, CEO and Founder
The counterfeit market is enormous. Recent economic reports suggest that the worldwide counterfeit market’s growth is equivalent to a $900 billion revenue loss suffered by big corporations with great ideas who helplessly lose to such malpractices. For instance, with the pre-established ways of executing business operations, the supply chains of countless businesses continue to be prone to plagiarism attacks. Over the years, all their data is being typically stored in a single centralized server in the cloud, making the supply chains vulnerable to fakes and counterfeits. Nearly all industry sectors are anxious about the impact fake products have on both consumer confidence and overall product quality. Take the case of the pharmaceutical industry, counterfeit drugs can even lead to death, posing a very grave situation.
Amid this scenario, blockchain technology, with its decentralized, distributed ledger system, is emerging as the perfect antidote for the counterfeit industry that has been poisoning the global economy. Organizations are increasingly deploying blockchain technology to create decentralized and transparent supply chains. In virtually every industry, suppliers and distributors are vying for an immutable record of every product’s journey to verify its authenticity and fight back against the rising tide of knockoffs threatening their brands.
Joining this crusade to battle the counterfeit market and lower the risk of fraud, Zurich-based Vault Security Systems is rising as a top-choice partner to protect organizations from counterfeit products or theft. ivault, the pioneering application built by Vault Security Systems, not only helps companies protect their products by shielding the entire supply chain against fraud and counterfeiting but also enables consumers to protect their most valuable assets against theft and loss – across an immediate environment, or on a global scale alike.
“What makes our platform interesting is that using a high-grade industrial blockchain, we constantly distribute all supply chain data among different decentralized servers, leaving no opportunity for hackers to get in at all,” states Arman Sarhaddar, Founder and CEO of Vault Security Systems. The company also takes pride in using a completely green, sustainable and scalable blockchain that can be scaled up to almost 200,000 transactions per second.
ivault enables organizations across industries to maintain a much higher security standard for their data or product information. Following the customer requirements, Vault Security Systems can laser print codes on the cover of a product, making it nearly impossible for hackers to duplicate them. For pharma products, where the counterfeit drug market has increasingly emerged as a menacing threat to humanity, the company can also use nanotechnology on pills to authenticate them.
“We implant IoT sensors, embed RFID chips or can even put NFC chips in the product, depending on the client’s budget,” says Sarhaddar.
Using a high-grade industrial blockchain, we constantly distribute all supply chain data among different servers, leaving no opportunity for hackers to get in at all
Powered by ground-breaking technologies like pattern recognition and machine learning, ivault grants access to the blockchain for a company executive or project in-charge, securing it in multiple tiers. For instance, if a project manager wants to get an entry into the backend of the blockchain to take a look at the status of the supply chain, they shall be granted access only after passing three security measures. The first tier consists of fingerprint recognition, the second tier includes face recognition, and the third tier requires an iris scan. Only when all these three criteria are satisfied one can have complete and secured access to the supply chain.
Vault Security Systems has established itself as one of the most prominent players in the war against counterfeits. Sarhaddar reminisces one of the many success stories where Vault Security Systems helped a customer selling nutritional supplements sourced from Sri Lanka and India, authenticate their products for regulatory approval. Using Vault Security System’s technology, every product, right from manufacturing to inclusion in the supply chain, was verified through a QR code. Once the client got the product, they could scan the QR code through a regular android phone or an i-phone and were redirected to the blockchain platform to oversee that product’s journey through the supply chain before it went into the hands of the customer. The ability to track every product’s entire journey also allowed the client to notify their customers to order some more products whenever they were on the verge of running out of supply. “It not only proved the transparency of the supply chain, but also gave the company more access to their clients, which is definitely an incredible value-add as the client data could be used for future sales,” affirms Sarhaddar.
On another occasion, a big recycling company in Germany experienced theft of their huge steel containers, which would get stolen on six-wheelers before being transported into Eastern European countries. “When we stepped in to help them, we got some advanced GPS trackers with anti-theft mechanisms, and connected it to our blockchain platform. Now, if somebody removes that tracker from that container or if it gets displaced, our client would be able to track all the information, and immediately report the matter to the police,” asserts Sarhaddar.
In the near future, Sarhaddar wants to utilize the maximum potential of pattern recognition and machine learning to stem the counterfeit market’s growth further. Meanwhile, the company is also looking forward to onboard pharmaceutical companies to help them fight the malice of counterfeited drugs. “We believe this is a huge market. As more and more people are buying medicines online, we should ensure an added layer of security while assuring them of the authenticity of those medicines. We are ready to get our feet in and scale up,” concludes Sarhaddar.