The European Union intends to use NFTs to fight counterfeiting by 2023
As part of its attempts to prevent the counterfeiting of real-world items, the European Union (EU) has disclosed that it is creating a plan that would include blockchain technology and non-fungible tokens (NFTs).
The European Union’s Intellectual Property Office will be responsible for creating the proposed system, which is the result of over five years of effort.
In a paper posted at the beginning of September, the group asserts that they have already selected a high-level architecture for this project, which specifies the system’s operation in broad strokes.
The owners of intellectual property (IP) will issue digital tokens to prove the authenticity of a set of produced commodities. Before these objects may be added to the tracking blockchain, the holders of these intellectual property rights must be added as authorized signatories.
The European Union Intellectual Property Office aims to have a fully operating system by the end of 2023. To achieve this objective, the EUIPO will need to create a registration system that groups together all of the IP holders, logistical operations, and merchants inside the EU. According to the research, the system would try to be interoperable with existing supply chain monitoring technologies in order to achieve its objective more effectively.
If the European Union is able to implement this system by the end of 2023, it will be one of the first large-scale implementations of blockchain technology for the purpose of attaining the aim. Historically, blockchain technology has also been used for monitoring supply chains.
Moreover, the European Union is now contemplating MiCA, a potential law that would control cryptocurrencies throughout the union.
Recently, the business blockchain initiative known as VeChain (VET) announced a partnership with Orionone, a global supply chain technology provider. The objective of this partnership is to incorporate blockchain technology into Vechain’s current technological stack.
In the same year, the electric component major Schneider Electric picked the blockchain platform VeChain, which focuses on supply chain management, as its ecosystem partner.