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Cardano ($ADA) developer Input Output Global (IOG) is set to launch a product authentication system powered by the Cardano blockchain called Atala SCAN, which is set to allow consumers to verify supply chain information and a product’s authenticity.
According to a blog post published by IOG, the solution to battle counterfeiters involved a smart seal that knows when it has been tampered with. Atala, the post says, adds “an encrypted, auditable link between the seal and the full manufacturing history of the specific bottle to which the seal is attached.”
Through the solution, users can check the history of a product using a free phone app, the post adds. The Atala SCAN is built on top of the Cardano blockchain and uses “touch-chip” technology via a Near-Field Communication (NFC) system.
Product authentication tech has numerous applications across multiple industries. A smart NTAG microchip linked to a blockchain can defeat counterfeiters. With the Atala SCAN app consumers will be able to look up a product on #Cardano & check if is genuine https://t.co/qhriWdsSG1
— Input Output (@InputOutputHK) May 4, 2022
The smart seal itself “consumes no power and silently waits for a signal from a reader.” The NFC chip within the seal has two antennas, the post details, one of which is designed to break if tampered with. This means that if a product’s smart seal is tampered with, it will transmit a modified signal as evidence.
The blog post adds that with Atala every item is “associated with a unique entry on Cardano,” and that “entry cannot be altered, but can be read easily, and can be used as part of an auditing system.” Juan Ignacio Sierra, Atala SCAN’s project manager, was quoted saying:
Atala SCAN has been in gestation for some time and it’s exciting now that we can start to bring the proposition to market. We’re in discussions with a number of potential clients. We will have more to share soon!
The product’s launch is coming at a time in which retail interest in Cardano is “rapidly increasing” as in the last 30 days addresses holding for less than 30 days – defined as traders on the blockchain – have increased their holdings by 186%.
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