FAKE PRODUCT DETECTION SYSTEM USING

BLOCKCHAIN TECHNOLOGY
A MINI PROJECT REPORT
(1904IT551 – CASE TOOLS)

SUBMITTED BY

AKASH I 8208E21ITR005

DURAIBALAN C 8208E21ITR021

SEDHUMANIMATHAVAN P 8208E20ITR044

VIGNESH S 8208E21ITR058

In partial fulfillment for the award of the degree

Of

BACHELOR OF TECHNOLOGY

In

INFORMATION TECHNOLOGY

E.G.S. PILLAY ENGINEERING COLLEGE

(AUTONOMOUS)

NAGAPATTINAM – 611 002

NOVEMBER 2023
 E.G.S. PILLAY ENGINEERING COLLEGE

(AUTONOMOUS)

NAGAPATTINAM – 611 002

BONAFIDE CERTIFICATE

Certificate that this mini project report “FAKE PRODUCT DETECTION

SYSTEM USING BLOCKCHAIN TECHNOLOGY” is the bonafide work of
“AKASH I, DURAIBALAN C, SEDHUMANIMATHAVAN P, VIGNESH S”
who carried out the mini project work under my supervision.

SIGNATURE SIGNATURE SIGNATURE

Dr. S. MANIKANDAN, M.E., Ph. D Dr. R. LAVANYA., M.E., Ph. D MS. V.SURYA., M.E
HEAD OF THE DEPARTMENT PROJECT COORDINATOR PROJECT SUPREVISOR
ASSOCIATE PROFESSOR ASSISTANT PROFESSOR ASSISTANT PROFESSOR
Department of information Technology Department of information Technology Department of information technology
E.G.S. Pillay engineering college E. G. S. Pillay engineering college E. G. S. Pillay engineering college
Nagapattinam. Nagapattinam Nagapattinam

Submitted for the end semester examination held on _____________.

INTERNAL EXAMINAR EXTERNAL EXAMINAR

 ABSTRACT

The rise of counterfeit products is a growing concern for businesses and consumers alike.
The proliferation of fake products poses a significant threat to the reputation and financial stability
of companies, as well as the health and safety of consumers. Blockchain offers a decentralized
and secure platform for tracking and verifying the authenticity of products, enabling consumers
to easily identify and avoid counterfeit goods. The use of blockchain technology in the
identification of fake products. My team examine the key features of blockchain technology and
how it can be used to create a secure and transparent system for product identification. My team
propose a blockchain-based system for product identification that utilizes smart contracts to
automate the verification process. The system would allow manufacturers to register their
products on the blockchain and generate a unique digital identity for each item. Consumers would
be able to scan the product's QR code to access the product's digital identity and verify its
authenticity. My team also discuss the potential benefits of using blockchain technology for
product identification, including increased transparency, reduced fraud, and improved consumer
trust. Finally, my team examine the challenges and limitations of implementing blockchain-based
product identification systems, such as scalability and interoperability issues. Overall, we
conclude that blockchain technology offers a promising solution for identifying and combatting
fake products. Its decentralized and secure nature provides a transparent and reliable platform for
verifying the authenticity of products, protecting businesses and consumers from the harmful
effects of counterfeit goods.

Keyword - Counterfeit product, QR code and Blockchain etc..

 TABLE OF CONTENTS
CHAPTER TITLE PAGE
NO NO
ABSTRACT III
1 CHAPTER 1 1
INTRODUCTION 1
1.1 OBJECTIVE OF PROJECT 2
1.2 SCOPE AND LIMITATIONS OF PROJECT 2

2 CHAPTER 2 4
LITERATURE SURVEY 4

2.1 A SURVEY OF BLOCKCHAIN TECHNOLOGY

4
4
2.2 PRODUCT TRACEABILITY USING BLOCKCHAIN

2.3 BLOCKCHAIN BASED SUPPLY CHAIN QUALITY

5
MANAGEMENT FRAMEWORK

2.4 A BLOCKCHAIN BASED MANAGEMENT SYSTEM

5
FOR DETECTING COUNTERFEIT PRODUCT IN SUPPLY
CHAIN

2.5 A BLOCKCHAIN-BASED APPLICATION SYSTEM FOR

6
FAKE PRODUCT DETECTION

3 CHAPTER 3 7
SYSTEM ANALYSIS 7
3.1 EXISTING SYSTEM 7
3.2 PROPOSED SYSTEM 7
4 CHAPTER 4 9
SYSTEM SPECIFICATION 9
4.1 HARDWARE REQUIREMENTS 9
4.2 SOFTWARE REQUIREMENTS 9
4.3 SOFTWARE SPECIFICATION
9
4.4 FUNCTIONAL REQUIREMENTS
10
4.5 NON-FUNCTIONAL REQUIREMENTS
11
4.6 PERFORMANCE REQUIREMENT
11

5 CHAPTER 5 12
SYSTEM DESIGN 12
5.1 SYSTEM ARCHITECTURE 12
5.2 SYSTEM FLOW 13

6 CHAPTER 6 15
UML DIAGRAM 15
6.1 USE CASE DIAGRAM 16
6.2 CLASS DIAGRAM 17
6.3 SEQUENCE DIAGRAM
18
6.4 ACTIVITY DIAGRAM
19

7 CHAPTER 7 20
IMPLEMENTATION 20
7.1 MODULES 20
7.2 TESTING AND DEPLOYMENT 21
8 CHAPTER 8 22
BLOCKCHAIN 22
8.1 WORKING OF BLOCKCHAIN 22
8.2 BLOCKCHAIN FEATURES 23
8.3 IMPORATANCE OF BLOCKCHAIN
24

9 CHAPTER 9 25
CONCLUSION 25

REFERENCE 26
 CHAPTER 1
INTRODUCTION
Fake product detection in blockchain refers to the process of identifying counterfeit
products by leveraging blockchain technology. Blockchain is a decentralized and immutable
digital ledger that provides transparency and security for transactions. By using blockchain,
businesses can ensure that their products are genuine, and customers can have confidence in
the authenticity of the products they purchase. It works by creating a digital record of the
product's origin and tracking its journey through the supply chain. Each time the product
changes hands, the transaction is recorded on the blockchain, creating an immutable and
transparent record of the product's history. This record used to verify the product's authenticity
and prevent fraud.

This paper proposes a novel approach to counterfeit goods identification using

blockchain technology that authenticates products and maintains a transparent record of all
product-related transactions. By registering each product on the blockchain and assigning a
unique digital identity to it, manufacturers can ensure that their products are authentic and
genuine. This allows consumers to verify the authenticity of the product before purchasing it,
ensuring that they are buying the real thing.

The main objectives of this system are:

1) Protect consumers, brands

2) Company revenue

3) Ensuring regulatory compliance

4) Supporting ethical practices

Blockchain can help streamline the verification process, ensuring that products are
genuine and reducing the risk of counterfeits entering the supply chain. The Paper will also
Discuss the potential benefits of this system, including increased transparency, supply chain
traceability, and consumer protection. for example, the platform creates a digital record for
each cosmetic item, containing details such as its origin, the date of production, and the supply
chain information. When a cosmetic item is scanned at any point in the supply chain, its
information is updated on the blockchain, creating a tamper-proof record of the item's journey
from farm to table. Consumers can also access this information by scanning a QR code on the
packaging or label of the cosmetic item. The blockchain record provides an immutable and

1
transparent record of the cosmetic item's journey, enabling businesses to quickly identify any
discrepancies or anomalies in the supply chain that may indicate the presence of counterfeit or
fake products. For example, if an item's record shows that it has been produced in a different
location than the one mentioned on the packaging, it will indicate that the product is fake or
counterfeit.

Moreover, this paper aims to provide a critical evaluation of the proposed system, including
its limitations and challenges. It will examine how the proposed system compares to existing
anti-counterfeiting technologies and explore potential future developments. Finally, this paper
will conclude with recommendation for future research in this area and its potential impact on
businesses and consumers. Overall, fake product detection in blockchain has the potential to
revolutionize the way businesses authenticate products and prevent fraud, providing benefits
for both businesses and consumers alike.

1.1 OBJECTIVE OF PROJECT:

The idea of this project came into existence because of the increase in the counterfeit
products.

The objectives of this project are:

• To Design Anti Counterfeit System using Blockchain.

• To secure product details using a QR code and image.
• Provide security to the clients by offering data to client.

1.2 SCOPE AND LIMITATION OF PROJECT:

In recent years, the spread of counterfeit goods has become global. There are many fake
products in the current supply chain. According to the report, fake product incidents have risen
in the last few years. It is necessary to have a system for customers or users to check all the
details of the product so that users can decide that the product is real or fake. In India currently,
there is no such system to detect counterfeit products. So, the solution involves a simple QR
code-based identification that can help the end-user or customers to scan and identify the
genuineness of the product by using a smartphone.

2
The limitations of using blockchain for fake product detection are as follows:

1. Data accuracy: The integrity of the blockchain relies on accurate data entry; incorrect
information can compromise its effectiveness and lead to false verification results.
2. High implementation costs: Implementing blockchain can be expensive, especially
for small businesses, potentially limiting its widespread use and effectiveness.

3
 CHAPTER 2

LITERATURE SURVEY

2.1 A Survey on Blockchain Technology: Evolution, Architecture and Security

Authors: Muhammad Nasir Mumtaz Bhutta, Amir A. Khwaja, Adnan Nadeem,

Hafiz Farooq Ahmad , Muhammad Khurram Khan, Moataz A. Hanif, Houbing
Song, Majed

Alshamari , and Yue Cao

This survey paper has covered architecture of cryptocurrencies, smart contracts and
general Blockchain based applications. The paper has provided a perspective to describe the
Blockchain architectures in relation to cryptocurrencies, smart contracts and other applications.
The research advances in consensus are also highlighted with some key development and
application frameworks. A detailed discussion with respect to future and open research avenues
is also performed, which could help to pave the way for researchers to explore the key
challenging areas in the Blockchain field.

2.2 Product Traceability using Blockchain

Authors: Rishabh Sushil Bhatnagar, Sneha Manoj Jha , Shrey Surendra Singh,
Rajkumar Shende

The conventional SCM systems are widely used in the current market whereas
blockchain is a relatively new system and is yet to be introduced in the industry on a large
scale. The current SCM systems have prevailed so long in the market due to its easy and
cheaper implementation on a large scale. Despite being used on a large-scale platform, these
systems have their flaws which have prevailed since the existence of these systems. The current
system is opaque in nature and is very vulnerable to various frauds and scams due to poor
maintenance of the records of the transactions within the system. Lack of trust between the
participating entities is an issue yet to be resolved. The trust of the customer in the system is
compromised by not providing a quality assured product even though it is a major factor in the
growth of any business. Even with all these flaws, these systems are being used by various
market giants as the prices of the products can be easily exploited with any credibility.

4
2.3 A Blockchain-based Supply Chain Quality Management Framework

Author : Si Chen , Rui Shi , Zhuangyu Ren , Jiaqi Yan , Yani shi , Jinyu Zhang

In this appropriate paper, they proposed a framework for blockchain based SCQI. This
framework will provide a theoretical basis to intelligent quality management of supply chain
based on the blockchain technology. Furthermore, it provides a foundation to develop theories
about information resource management in distributed, virtual organizations, especially
distributed, cross-organizational and decentralized management theory.

2.4 A Block Chain based Management System for Detecting Counterfeit Product
in Supply Chain

Authors: M.C.Jayaprasanna, .V.A.Soundharya , M.Suhana, S.Sujatha

In this Paper, they have discussed about counterfeit products are growing exponentially
in online and black-market. The block market is a biggest challenge in supply chain. The
government has introduced several laws and regulations against fake products even though the
government cannot control counterfeit products. Therefore, there is a need of an approach for
detecting counterfeit products and providing security techniques to alert both manufacturer and
consumer in supply chain. Manufacturers may use the block chainmanagement system to store
relevant product sales information within the block chain, which is accessible to all. The total
number of sales the seller can sell and the rest left behind by the seller are transparent. The user
can perform vendor-side verification using an encryption algorithm. Only way to decrypt is to
use a private key of the owner. In this paper, we proposed block chain management system
activates the consumer and enterprise vendor to track and identify the real product using a
Smartphone. It also will detect counterfeit products as well as authenticity of manufacturer for
both end user and enterprise vendor.

5
2.5 A Blockchain-Based Application System for fake product detection

Authors: Jinhua Ma , Shih-Ya Lin , Xin Chen , Hung-Min Sun

In this particular Paper, Manufacturers can use the system to store relevant information
on product sales in Blockchain which is accessible to everyone. The total amount of sales that
can be sold by the seller and the number of products currently left by the seller are transparent.
The user can use the functions provided by our system to immediately perform vendor-side
verification. The system provides identity verification by using digital signatures. There are no
other means to decrypt the private key of the key owner unless the key owner accidentally leaks
his key. In their system analysis result, the cost of the initial product record contract will only
cost 1.2893394289 US dollars, and the cost of each product sale process will cost
0.17415436749 US dollars.

6
 CHAPTER 3

SYSTEM ANALYSIS

3.1 EXISTING SYSTEM:

A supply chain is a coordinated network. Therefore, any SCM system must also have a
cohesive structure that enables functionality and visibility along the product delivery journey.
As such, an SCM system would typically integrate features such as inventory management,
warehouse management, purchase-order processing, demand forecasting, supplier relationship
management, logistics planning, and so on.

Also, most SCM systems are integrated with bookkeeping functionalities to enable the
business to manage its ledger and optimize finances effectively.

Over the years, there’s been increased adoption of cloud-based SCM systems as
software-as-a-service (SaaS). Cloud management of the supply chain allows businesses to track
the entire lifecycle of a project, offering close monitoring and adequate visibility at each
touchpoint. It emerged to fill the gaps with traditional SCM systems, which lack the 360°
management enabled by cloud technology. Overall, cloud-based SCM systems are more
scalable and efficient.

3.2 PROPOSED SYSTEM:

A blockchain supply chain can help participants record price, date, location, quality,
certification, and other relevant information to more effectively manage the supply chain. The
availability of this information within blockchain can increase traceability of material supply
chain, lower losses from counterfeit and gray market, improve visibility and compliance over
outsourced contract manufacturing, and potentially enhance an organization's position as a
leader in responsible manufacturing.

As blockchain gains publicity, large corporations and startups are exploring uses of the
technology outside of the financial services industry. Many organizations are already
experimenting with blockchain innovations to fulfill a range of needs. Provenance, a supply
chain transparency start-up, recently completed a six-month pilot for tracking responsible
sourcing of tuna in Indonesia via blockchain. Monegraph, a startup launched in 2014, uses

7
blockchain to secure the usage and sharing rights of digital media such as video clips or brand-
sponsored content and enable sharing of revenue across the media creators, publishers, and
distributors. Skuchain builds blockchain-based B2B trade and supply chain finance products
targeted towards the $18 trillion global trade finance market that involves numerous entities
including buyers, sellers, logistics providers, banks, customs, and third parties. Blockchain
driven innovations in the supply chain will have the potential to deliver tremendous business
value by increasing supply chain transparency, reducing risk, and improving efficiency and
overall supply chain management.

8
 CHAPTER 4

SYSTEM SPECIFICATION

4.1 HARDWARE REQUIREMENTS:

• Operating Systems: Windows 7 or above

• Hard disk : 20GB
• RAM :4GB and above
• Processor: i3 and Above

4.2 SOFTWARE REQUIREMENTS:

• Tools : Xampp
• Language : Solidity
• IDE’s : Visual Studio 2019 and Remix Ethereum IDE (online)
• Metamask wallet Ganache (personal blockchain)

4.3 SOFTWARE SPECIFICATION:

Remix Ethereum IDE:

Remix Project is a platform for development tools that use a plugin architecture. It
encompasses sub-projects including Remix Plugin Engine, Remix Libraries, and of course
Remix IDE.

Remix IDE is an open source web and desktop application. It fosters a fast development cycle
and has a rich set of plugins with intuitive GUIs. Remix is used for the entire journey of contract
development with Solidity language as well as a playground for learning and teaching Ethereum.

Ganache:

Ganache is a personal blockchain for rapid Ethereum and Corda distributed application
development. You can use Ganache across the entire development cycle; enabling you to
develop, deploy, and test your Apps in a safe and deterministic environment.

9
 Ganache comes in two flavors: a UI and CLI. Ganache UI is a desktop application
supporting both Ethereum and Corda technology. The command-line tool, ganache-cli
(formerly known as the TestRPC), is available for Ethereum development.

Ganache is used for setting up a personal Ethereum Blockchain for testing your Solidity
contracts. It provides more features when compared to Remix. You will learn about the features
when you work out with Ganache. Before you begin using Ganache, you must first download
and install the Blockchain on your local machine.

Solidity:

Solidity is an object-oriented programming language for implementing smart contracts

on various blockchain platforms, most notably, Ethereum. It was developed by Christian
Reitwiessner, Alex Beregszaszi, and several former Ethereum core contributors. Programs in
Solidity run on Ethereum Virtual Machine. Solidity is a statically typed programming language
designed for developing smart contracts that run on the Ethereum Virtual Machine (EVM).

Ethereum (ETH):

Ethereum is a permissionless, non-hierarchical network of computers (nodes) that

build and come to a consensus on an ever-growing series of "blocks", or batches of
transactions, known as the blockchain. Each block contains an identifier of the chain that
must precede it if the block is to be considered valid. Whenever a node adds a block to its
chain, it executes the transactions in the block in the order they are listed, thereby altering the
ETH balances and other storage values of Ethereum accounts. These balances and values,
collectively known as the "state", are maintained on the node separately from the blockchain,
in a Merkle tree.

4.4 FUNCTIONAL REQUIREMENTS:

A functional requirement defines a function of a system or its component. Where a

function is described as a specification of behavior between inputs and outputs.

• System must be automatically connecting to Wallet.

• System should be able to scan the QR code.
• System Should be able to generate the QR code.

10
 • System Should show error message if the uploaded image is not QR code.
• Auto update of scanned location of the QR code.
• Storing all these details in blockchain nodes.

4.5 NON-FUNCTIONAL REQUIREMENTS:

Software requirement can be non-functional and also be a performance requirement.

Nonfunctional requirements are the characteristics or attributes of the system that can judge
its operation.

The nonfunctional requirements are divided into usability, reliability, performance,

Supportability and safety.

Usability:

The system must be easy to learn for manufacturers , retailers , distributors and
mainly for consumers.

Reliability:

The reliability of the device essentially depends on the software tools such as
metamask, remix IDE, Ganache used for the system development.

Performance:

The system shall allow the system administrator to add additional features. The
system needs to be cost-effective to maintain.

Safety:

In case of malfunction, scanning from the manufacturers side should be stopped , and
also it must be notified to others that it is not working.

4.6 PERFORMANCE REQUIREMENT:

• Linking and correct deduction of gas amount for transaction.

• Block generation for each and every transaction.
• Automatic hub location generation for transaction.
• Product code generation automatically once registering the product.

11
 CHAPTER 5

SYSTEM DESIGN

5.1 SYSTEM ARCHITECTURE:

System architecture refers to the design and organization of software and hardware
components of a system to meet certain functional and non-functional requirements. The above
diagram represents the architecture of fake product detection using blockchain technology in
which it contains the fields like product manufacturer, generate record, add product details,
generate QR code, blockchain network, customer, register/login, scan QR code, show product
details. Firstly, product manufacturer will manufacture the product with unique identifier and
product name then generation of QR code is done based on the unique ID. The QR code is
appended to blockchain network through meta mask. Further, customer will scan the QR code
and get the authentication of product.

Fig. 5.1System architecture

12
5.2 SYSTEM FLOW:

The main aim of this proposed system is to maintain the Genuity of the product by
helping the customer track the supply chain history of the product. System give customers the
power to track the history of an entire product from manufacturer to customer using blockchain.
This product anti-counterfeiting system based on Blockchain in composed of three roles, the
Manufacturer role, the Seller role, and the Consumer role, as discussed.

Fig. 5.2System architecture

13
MANUFACTURER:

Manufacturer logs into the manufacturer account and generates QR Code for Product and adds
other required details of the product and by using his ethereum wallet, the manufacturer adds
a block to Ethereum blockchain. The user id of our local database and the wallet address of the
entity will be mapped together, if both the things are there, that is a manufacturer logs in from
his own account and uses his own wallet then only the block will be added to the digital ledger.

SUPPLIER:

Supplier logs into supplier account and scans the QR code on the product. The seller can access
information

about his products that the manufacturer has entered. It adds its own details of the product like
shop destination

and pushes it into the Blockchain. Those details can be viewed by the buyer.

CUSTOMER:

Customers can check the integrity of the product by scanning QR code which will list
the history of transactions and thus verifying the genuinity of the product. At the time of
customer purchasing the product after the QR scan in supply chain history, if the last location
is not matched with the purchase location, the customer will know that the product is not
genuine. It concludes that the QR code was copied and the customer becomes aware of
counterfeiting.

14
 CHAPTER 6

UML DIAGRAM

UML, which stands for Unified Modeling Language, is a way to visually represent the
architecture, design, and implementation of complex software systems.

there are two main category structure diagrams and behavioral diagrams.

UML is used to specify, visualize, construct, and document the artifacts (major
elements) of the software system. It was initially developed by Grady Booch, Ivar Jacobson,
and James Rumbaugh in 1994-95 at Rational software, and its further development was carried
out through 1996.

• Use Case Diagram

• Class Diagram
• Interaction Diagram
→Sequence Diagram
→collaboration Diagram or Communication Diagram
• State Diagram
• Activity Diagram
• Package Diagram
• Component Diagram
• Deployment Diagram

UML diagrams can help system architects and developers understand, collaborate on,
and develop an application. High-level architects and managers can use UML diagrams to
visualize an entire system or project and separate applications into smaller components for
development.

15
6.1 USE CASE DIAGRAM:

Use-case diagrams describe the high-level functions and scope of a system. These
diagrams also identify the interactions between the system and its actors. The use cases and
actors in use-case diagrams describe what the system does and how the actors use it, but not
how the system operates internally.

Fig. 6.1 Use case diagram

The above figure 6.1, describes the functions that a system performs to achieve the
user’s goal. It describes how the actor(user) interacts with the system.

16
6.2 CLASS DIAGRAM:

Class diagrams are the blueprints of your system or subsystem. You can use class
diagrams to model the objects that make up the system, to display the relationships between
the objects, and to describe what those objects do and the services that they provide. Class
diagrams are useful in many stages of system design.

Fig. 6.2 class diagram

The above diagrams fig. 6.2, describes the class diagram of the system. It shows the
attributes and operations of various classes and it shows the dependency and multiplicity
among different classes.

17
6.3 SEQUENCE DIAGRAM:

The sequence diagram represents the flow of messages in the system and is also
termed as an event diagram. It helps in envisioning several dynamic scenarios. It
portrays the communication between any two lifelines as a time-ordered sequence of
events, such that these lifelines took part at the run time. In UML, the lifeline is
represented by a vertical bar, whereas the message flow is represented by a vertical
dotted line that extends across the bottom of the page. It incorporates the iterations as
well as branching.

Fig. 6.3 sequence diagram

The above fig. 6.3 depicts the sequence flow included with the time and it describes how the
system interacts with the user.

18
6.4 ACTIVITY DIAGRAM:

An activity diagram is a type of Unified Modeling Language (UML) flowchart that

shows the flow from one activity to another in a system or process. It's used to describe the
different dynamic aspects of a system and is referred to as a 'behavior diagram' because it
describes what should happen in the modeled system.

Fig. 6.4 activity diagram

19
 CHAPTER 7

IMPLEMENTATION:

The method of implementation deals with how the system being implemented, the
technologies involved in developing the software and executing the software. The
implementation phase comprises of several activities. The required hardware and software
acquisition is carried out. The system may require some software to be developed. For this,
programs are to be written and tested. The user can then change over to his new fully tested
system and the old system is discontinued.

Technologies Used The technologies that are used in the project are:
• Blockchain
• Solidity
• python
• my sql
• Android Studio

7.1 MODULES:

• Type of login: three type of login. manufacturer, user and admin.

• Registration: user have to register to become part of project.
• Login: user have to login themselves to access in project.
• Add product: After manufacturer login manufacturer can add product using java script
and smart contract in block chain Database.
• Generate Qr Code: all product data display in admin side and admin verify that
product and generate qr code of that related product using python and add in block
chain database.
• Scan Qr Code: user scan that Qr Code using android application and then display all
information of product in our mobile screen.

20
7.2 TESTING AND DEPLOYMENT:

• TESTNET DEPLOYMENT:
Deploy your solution on a testnet first to identify and fix any issues before
deploying on the Mainnet.
• USER TRAINING:
Train users on how to interact with the blockchain-based system.

21
 CHAPTER 8

BLOCKCHAIN

Blockchain is collection blocks that are linked together which stores information. Each
block has a timestamp, transaction data and hash of its own and hash of previous block, so it is
difficult to tamper with data. Blockchain is a decentralized system. It ensures that every new
block added to the blockchain is the one and only true version that is agreed upon by all nodes
in the Blockchain. It refers to the collective maintenance of a technical solution that maintains
a continuous record file as a reliable database through decentralization.

8.1 WORKING OF BLOCKCHAIN:

When a new transaction is entered, it is then transmitted in a network of peer-to peer

computers scattered across the world. The network of computers then solve the equations to
confirm the validity of the transaction. They are called miners. Once confirmed to be legitimate
transactions, they are clustered together into blocks. The miner then receives an award as a
proof of work. These blocks are then chained together creating a long history of all transactions
that are permanent. The transaction is complete.

Fig. 8.1 sequence diagram

22
8.2 BLOCKCHAIN FEATURES:

Blockchain can add data records to its database which does not depend on any
centralized authority as a arbitrator, instead it works on its own consensus algorithms.
Blockchain is openly available database and is highly reliable. The features of Blockchain
technology are described in detail below. The features of Blockchain are shown in figure 7.2.

Fig. 8.2 feature of blockchain

• Security and privacy : Blockchain uses cryptography to secure its data. Private key
is used to sign the data, using public key we can verify whether the data has been
tampered or not and check its genuineness. A user should protect its private key similar
to bank OTP and passwords and prevent it from leaking to ensure the security of its
data on blockchain.
• Decentralized : In a decentralized blockchain network, no one has to know or trust
anyone else. Each member in the network has a copy of the exact same data in the form
of a distributed ledger. If a member’s ledger is altered or corrupted in any way, it will
be rejected by the majority of the members in the network.

23
 • Untraceability : Once the block is entered into the blockchain, it cannot be tampered.
Due to this if the block in the Blockchain is altered and is immediately rejected or
deleted.
• Transparency: The data in Blockchain is completely public and can be viewed by
the participants.
• Flexibility: Being open source is one of biggest advantages of blockchain. Various
public and private blockchains are available to the users, which can be used based on
type of application which has to be created.

8.3 IMPORTANCE OF BLOCKCHAIN:

Blockchain increases trust as we don’t have to depend on any third party. The smart
contracts which are basically programs on blockchain are run only when certain conditions are
met. Since all the blocks stores its data along with hash of previous block it becomes difficult
to modify the blockchain with false information. If attacker changes information of block, it’s
hash also change but the hash of next block remains same. To alter chain would require the
consensus of more than half of the participants which is unlikely, since lots of resources and
financial amount is required. Also other members would come to know of this drastic change.

24
 CHAPTER 9

CONCLUSION:

Blockchain is a decentralized system, therefore the local suppliers cannot interfere with
the checking or counterfeiting of the product in the proposed system. Manufacturers and
Suppliers can use the system to store product details in Blockchain which offers certain
properties such as tamper resistance, data consistency and confidentiality that assure the
security and privacy of the data on the network. The customer views the product supply chain
history and verifies if the product is genuine. Customers can be sure about the integrity of goods
they purchase. The proposed system can effectively lower the rate of counterfeiting of branded
goods and provide the companies with an easier approach to provide consumers with the
confidence that they will not purchase counterfeit goods. This system will help to build trust
and good bonding between manufacturer and customer and in deed it will help in improving
economy and reducing corruption. Further system can be extended to avoid frauds done in
banking, healthcare, voting system, online shopping and so on. In this semester we are
completed the design process for this project and next semester we will plan to do the
implementation process.

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[1] Abdul Rawoof Khan, Aditi Sahay, Athmika BV, Lavanya MV ”Fake Product Detection
Using Blockchain ”,Vol.04,July-2022 , e-ISSN: 25825208.

[2] Ishaan” Singhal , Himanshu Singh Bisht , Yogesh Sharma”Anti Counterfeit Product System
Using Blockchain Technology ”, Vol.9, Dec 2021,ISSN: 2321-9653.

[3]. Jinhua Ma, Shih-Ya Lin, Xin Chen, Hung-Min Sun, Yeh-Cheng Chen, and Hoaxing Wang,
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