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Blockchain-Based Traceability for Anti-Counterfeit in Cross-Border E-Commerce Transactions

Author

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  • Heongu Lee

    (Office of Strategic R&D Planning, Korea Evaluation Institute of Industrial Technology (KEIT), Seoul 110, Korea)

  • Changhak Yeon

    (BlockOdyssey Ltd., Seoul 110, Korea)

Abstract

Cross-border e-commerce, involving international product transactions via online and mobile platforms, is growing at a dramatic rate around the globe. One of the main concerns of brand firms is preventing counterfeit products from being sold under their names on e-commerce platforms. Counterfeit goods not only create economic losses to both the supply and demand sides, but also undermine efforts to improve sustainability. Proliferating counterfeits harm the brands of supply firms and trust in selling e-commerce platforms. In addition, they discourage participants in the supply chain from investing in social and environmental sustainability. If end-customers have access to detailed and comprehensive product information with a traceability system that can help overcome information uncertainty and asymmetry, losses can be prevented. The result of the pilot test has shown that securely shared in-depth product information among supply chain stakeholders from the supply side to end-customers can help prevent counterfeit goods from proliferating further by enabling consumers to determine the authenticity of products and report forgeries before paying.

Suggested Citation

  • Heongu Lee & Changhak Yeon, 2021. "Blockchain-Based Traceability for Anti-Counterfeit in Cross-Border E-Commerce Transactions," Sustainability, MDPI, vol. 13(19), pages 1-20, October.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:19:p:11057-:d:650747
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    2. Kordestani, Arash & Oghazi, Pejvak & Mostaghel, Rana, 2023. "Smart contract diffusion in the pharmaceutical blockchain: the battle of counterfeit drugs," Journal of Business Research, Elsevier, vol. 158(C).

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