DiTiNOW

DiTinow uses NFTs and title tokens to prevent counterfeiting. We created a website, CryptoC14.com, that lets people verify a product’s authenticity through its title token.

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Inspiration

The problem of counterfeiting is a technology issue and the absence of proactive anti-counterfeit actions. Unfortunately, current approaches to identifying counterfeit products are incapable of the job and thus discourage consumer participation. Two widely adapted approaches are physical authentication and Track-n-Trace technology.

Physical Authentication is based on the assumption that authentic material and superior quality imply authenticity and authorization. However, the best possible result of a physical analysis is to find out what and how the product was made, instead of who is authorized to build the product. Authenticity and authorization are not physical properties. Examining the material properties alone cannot prove authenticity and authorization. The information must be delivered by other methods such as a letter of authorization and Track-n-Trace technology.

Track-n-Trace technology provides location and custody information of where a genuine product had been and where it should or should not be. There are some limitations of this technology: • Double spending. Track-n-Trace technology cannot guarantee the exclusive possession/use of tracking information. Replicas with cloned IDs will pull out identical tracking information. • Adaption cost. Existing supply chains must be upgraded to handle the excessive data collection since the anti-counterfeiting logic will fail if the location and custody information is out of sync with the material goods.

At DiTiNOW, we are using a different approach to solve the problem. We identify counterfeit by validating if the authorization and ownership of a product are authentic and legitimate rather than examining if the materials used are authentic. Then, we motivate consumers to purchase genuine products with an NFT issued (minted) by its IP owners. The solution was inspired by title recording systems and warranty deed transaction processes commonly found in the auto and real estate industries. We call it Digital Title - a decentralized, distributed title recording system.

What it does

Digital title is a low latency, low cost title recording system for consumer goods, which can 100% identify counterfeit and unauthorized products. Digital title improves information transparency and builds trust between consumers and IP owners without knowing each other or an intermediary agency.

Targeted users of digital titles are Intellectual Property (IP) owners and consumers. Law enforcement, distributors, and retailers should also use the solution for authentication checks.

How we built it

DiTiNOW developed an open source web application named CryptoC14 for IP owners and consumers. CryptoC14 is built on HTML 5, CSS, JavaScript and PHP. By connecting to NXT-clone blockchain API services, CryptoC14 can run from any modem web browser; it can also be integrated as part of the IP owner’s current website to provide an authentication check and allow the end user to claim the ownership of a genuine product.

Challenges we ran into

Knowing the weakness and vulnerability of traditional anti-counterfeiting solutions, we must come up with a new approach to identify counterfeit and unauthorized products, otherwise, we will just repeat the same mistake made by physical authentication and track-n-trace technology.

Our team had no previous experience in building web applications, so we had to learn HTML, JavaScript, and PHP from scratch.

Accomplishments that we're proud of

Physical authentication answers the question of what a product was made of, and track-n-trace technology might tell consumers where a genuine product should or should not be. Our solution for identifying counterfeit answers some of the most critical questions: who gives permission to build, who grants permission to sell, and who owns the product? Consumers and law enforcement officers can identify a fake product within a second by using the CryptoC14 DApp developed by DiTiNOW. No special tools or professional skill is needed other than a smartphone with a web browser.

What we learned

Physical identification and track-n-trace technology are inadequate and outdated in the fight against counterfeiting. In order to outsmart counterfeiters, we must think like bad actors, which help us to find out the weakness and vulnerability of our solutions.

What's next for DiTiNOW

Digital title is a new form of a title recording system. We believe the application goes beyond identifying counterfeit products that already exist. In the future, digital titles can be an instrument to prevent monetary support before the fake product is made. It also has the potential to provide true DeFi (Decentralized Finance) with real physical assets as collateral.

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