How and why Blockchain should be used to authenticate products and resources

1. Is Blockchain
the future of Serialization?
Chaim Bechor
BrandGuard LTD
Conference 2017http://www.linkedin.com/in/chaimbechor

2. 2
Why Blockchain?➤
Agenda
The Basics➤
Verifying Ownership➤
Verifying Authenticity➤
Challenges➤
Summary & Q&A➤

3. 3
Blockchain
Restores trust
in an untrusted
transactional
environment
➤
Why use Blockchain?
✓

4. 4
How is it related to Serialization?
Database Tagged Item
Tagged Item?
We need to secure the
database part
✓ This is fine

5. 5
Blockchain Technology
The Basics

6. 6
Peer2Peer
Blockchain implements
a ‘distributed ledger’
Nodes
inter-communicate
to update and
validate any change.
No central facility

7. 7
Basic Structure
Each nodes
records all the
transactions
applied to this
Blockchain –
the entire
history
How it works
Network
Each Node
stores a linked
chain of blocks
Nodes
participates via
unique pointer
(‘URL’)

8. 8
Block Structure
Each blocks
contains all
necessary data
and pointers
to ensure
resistance to
unauthorized
change
How it works
#1 (First)

9. 9
Chain Structure
Blocks are
interlinked via
hashed pointers
(‘hash’ =
unidirectional
encryption
using SHA256
algorithm)
How it works
#1 (First)
#2 (First)
Data Value #1
3
Hash#1
Nonce#1

10. 10
(Demo) (Web-Hosted simplistic case, Video)
Go to: http://blockchaindemo.io/
Go to:
http://https://anders.com/blockchain/
For a more elaborate video demo:

11. 11
Verifying
Ownership
using Blockchain
Technology

12. 12
Kupat Tahu Presentation
Distribution Point
Perfect match between need and technology
The ’Track & Trace’ Case
Source Store
Each change of
ownership recorded

13. 13
Verifying
Authenticity
using Blockchain
Technology
?

14. 14
Kupat Tahu Presentation
Transactional tracking is not enough
Authenticity Verification
CounterfeitOriginal Counterfeit
Serialization is safe:
Cannot change or
generate fakes
…But can be easily
retrieved

15. 15
Kupat Tahu Presentation
Needs to add Complementary Measures
Making Authentication Safe
Original
Serialization is safe
…Access Control
Unique Tags

16. 16
Challenges
Mining Costs
Network Depth

17. 17
Mining Cost Target: < $0.1 per code
Ethereum mining uses the
principle of ‘Computational
Wall’ as a barrier to excessive
mining’
Too expensive for the mission
Solution: Private Blockchain
As the number of
codes increases,
the energy required
to mine a new one
increases -
exponentially

18. 18
Private vs. Public Network Depth
Required vs. Available Network Depth
…….
~ 3
10+
> 10n
Minimum
OK
Public
Private
Best

19. 19
Low Mining Costs
Network Depth substantial
Powerful /Convenient APIs
Based on
Jelurida.com
BrandGuard is evaluating

20. 20
Q&As
Chaim Bechor
BrandGuard LTD
WebSite:
brandguardpro.com