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The world of physical and digital is becoming increasingly intertwined, and the use of non-fungible tokens (NFTs) is one way to bridge this gap. NFTs are a type of cryptographic token that represents a unique digital asset, often in the form of a digital collectible. But, Authena has flipped the script and is using them to represent the authenticity of real-world assets.

The problem with counterfeiting

Over the past few decades, counterfeit products have become more common. While you used to have to go to a street corner in New York to get a fake Gucci handbag, now they exist everywhere. The decreased cost of custom manufacturing has made it easier for counterfeiters to create look-alike products. But, Chinese outsourcing has given a lot of intellectual property control to foreign powers without copyright protections.

In addition, the internet has turned everyone's phones into a NY street corner. Websites like Wish and Temu have made their fortunes selling counterfeit products, or selling unrelated products using someone else's photos. But, these products show up everywhere, from Amazon and Walmart's marketplace to eBay and Facebook Marketplace. With the size and scope of these services, it's nearly impossible for them to police every product being listed through their marketplaces. And so, counterfeit products from Nike shoes to weapons accessories leak into the market.

Brands have tried for years to find ways to indicate a legitimate product. We've seen holographic stickers with specific designs, but those can be produced on demand now. Serial numbers can be forged, especially if the algorithm that produces them is leaked. The need for a guaranteed one-to-one solution has been a long time coming, but now the technology exists to make it possible.

Bridge physical and digital worlds with NFTs

NFTs are particularly useful for authenticating physical products, such as luxury items, wines, and cosmetics. Authena adds a special RFID tag to the physical product, and with multiple layers of encryption, it becomes much more difficult for fraudsters to counterfeit the product. This creates a trust bridge between the brand and the consumer, as the consumer can easily verify the authenticity of the product with their phone, without needing any additional apps.

In addition, Authena's NFTs can also be used to create a digital twin of the physical product. This digital twin can be used to track the product's journey, from manufacture to sale and beyond. This not only helps to protect the authenticity of the product but also provides a way for brands to engage with their customers. For example, when a consumer opens the product, they can claim the digital twin of the product, and receive exclusive content or rewards from the brand.

NFTs offer a powerful way to bridge the physical and digital worlds and are becoming increasingly popular as a way to authenticate physical products, and to create a deeper connection between brands and their customers. As the technology continues to evolve, it is likely that NFTs will become an essential part of the authentication process for many physical products, and will help to ensure that consumers are getting the genuine article.

Learn more

The Authena service is available now, and being used by big brands around the world. To learn more about the service or to request a demo for your own product, head over to their website.

Interview by Marlo Anderson of The Tech Ranch.