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Product Ownership Management System Based on Blockchain

POMS stands for product ownership management system. POMS systems can be used to verify the original ownership of the products. These systems are useful in eliminating counterfeit products from the market. Counterfeiting products, such as expensive and branded goods, is one of the most serious and difficult problems of the supply chain in international markets.

This has been acknowledged for more than a decade, with the OECD (Organisation for Economic Co-operation and Development) estimating in 2007 that counterfeiting products in international trade might amount to around US$250 billion. Because of e-commerce’s rapid growth, anti-counterfeit solutions are urgently needed. The fight against counterfeit items intensifies, endangering consumers’ safety, businesses’ reputations, and the economy.

POMS works on the one-of-a-kind features of blockchain, such as decentralization, transparency, and immutability, in the creation of a tamper-proof digital ledger. A digital signature or a unique identifier is assigned to every product at the creation time of the data that is stored on the blockchain. This signature is attached to the product’s manufacturing and distribution information, which forms an unbroken chain of ownership data.

A product ownership management system is a cutting-edge technology powered by blockchain that has the potential to eliminate counterfeit products entering the market, effectively and innovatively. By leveraging it businesses and consumers get features like real-time verification and unassailable proof of ownership.

Blockchain introduction

Blockchain technology offers various features such as a decentralized, tamper-resistant digital ledger/distributed database that facilitates the secure and transparent recording, verification, and storage of information. It works through a network of computers or nodes, where every node has a copy of the entire chain of blocks. Each block contains a list of transactions or data, which, once added, becomes almost impossible to change or manipulate the information within.

Blockchain’s immutability is enabled through cryptographic hashes and consensus algorithms. This technology has proved its eminence and is being implemented across multiple domains, not just solely in cryptocurrencies. Some examples are supply chain management, smart contracts, identity verification, and decentralized applications, thus revolutionizing industries with trust, efficiency, and accountability.

Using a Blockchain-Based Product Ownership Management System (POMS) has its own set of Advantages for Anti-Counterfeits:

Product Ownership Management System advantages are listed here:-

1. Enhanced Product Authenticity: The risk of purchasing a counterfeit product can be eliminated using the Web3 & blockchain-based POMS service, as it enables the customer to verify the origin and ownership of the products without disclosing their identity, which nurtures the customer’s confidence. POMS makes sure that each product is uniquely recognized, and relevant information is stored on the blockchain, blockchain here provides a secure and tamper-proof mechanism for product originality verification.

2. Transparency and Traceability: POMS uses blockchain features to create a transparent and traceable supply chain transaction recording system. where it stores the transaction details about the product. This traceability system empowers businesses and consumers to track the product’s lifecycle which incorporates from production to distribution process, that helps in ensuring that the product is handled correctly throughout the supply chain.

3. Increased Consumer Trust: By demonstrating their commitment to anti-counterfeit efforts using blockchain technology, businesses can use it to create trust with consumers. Consumers feel more confident in purchasing products from brands that use POMS, after knowing that they are buying genuine and safe products.

4. Real-Time Verification: In order to ensure immediate confirmation of the product’s authenticity, POMS allows consumers to quickly verify the unique identifier of the product on a user-friendly platform.

5. Data Security: Data security is enhanced by blockchain’s immutable and decentralized nature. Information related to products and transactions is safeguarded by blockchain, resulting in reducing the risk of data breaches.

Disadvantages of Blockchain-Based Product Ownership Management System (POMS) for Anti-Counterfeits:

Product Ownership Management System Disadvantages are listed here:-

1. Implementation Costs: A blockchain-based system like POMS requires an initial investment in infrastructure and technology. These expenses could be out of the budget for some companies, particularly smaller ones.

2. Technological Complexity: The proper adoption and maintenance of blockchain technology need specialized expertise and knowledge because it is still a relatively novel and complicated technology. Businesses could encounter difficulties integrating POMS into their current systems.

3. Scalability: Over time when the value of transactions and participants on the blockchain increases, at that time scalability becomes a concern. It will start affecting the Blockchain network with increasing processing times and higher transaction fees, which will cause an impact on the performance and efficiency of POMS.

4. Regulatory Challenges: Blockchain technology is becoming more popular, there are currently no standardized rules controlling its usage in different industries. Businesses utilizing POMS may need help in terms of compliance and legality as a result.

5. Single Point of Failure: Although blockchain is recognized for its decentralized nature if it is not sufficiently safeguarded against cyberattacks, the system’s reliance on digital identification and access may lead to a single point of failure.

Despite its disadvantages, a blockchain-based Product Ownership Management System (POMS) for counterfeit prevention offers both businesses and consumers several advantages. As an example of POMS’s advantages, such as improved product authenticity, transparency, and customer confidence, counterfeiting may be prevented, creating a more secure and dependable supply chain environment. As blockchain technology evolves and grows more widely accepted, POMS has the ability to transform anti-counterfeiting initiatives and protect the integrity of products globally.

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An example and case study where POMS has proven to be a game-changer in the battle against counterfeits:

An Example: Luxury Fashion Brand

A well-known renowned luxury fashion brand implemented POMS to combat the rise of fake items and maintain its prestigious status. Every item it sells, ranging from purses to footwear, comes with an exclusive digital mark stored on the blockchain. By scanning the item’s label with their Mobile devices, consumers can promptly confirm its legitimacy and obtain details regarding its source, composition, and production method. With the use of POMS, this luxury brand can guarantee the authenticity of its products to its customers, reducing the possibility of counterfeit items damaging its brand reputation.

A Case Study: Pharmaceutical Industry

Counterfeit drugs in the pharmaceutical industry pose a serious threat to public health and trust. To address this issue, a well-known pharmaceutical company has implemented POMS. Each drug package it sells includes a QR code that is encrypted and connected to the blockchain. Patients and healthcare providers can scan this code to verify the drug’s authenticity and obtain details about its production and distribution. With POMS, the pharmaceutical company can safeguard the quality of its products and prevent patients from being exposed to dangerous counterfeit medications.


The Product Ownership Management System (POMS), which is based on blockchain technology, is an innovative solution aimed at combating product counterfeiting. By leveraging the decentralized and immutable nature of blockchain, POMS establishes a transparent framework for tracking product ownership, effectively preventing counterfeit infiltration.

This system empowers consumers to authenticate products, promotes collaboration among stakeholders, and facilitates targeted recalls for safety and quality issues. By instilling confidence in the marketplace, POMS not only safeguards legitimate manufacturers but also serves as a potent weapon in the battle against counterfeit goods. 

POMS offers several advantages, such as improved product authenticity, transparency, and customer confidence, counterfeiting prevention, and creating a more secure and dependable supply chain environment. As blockchain technology evolves and grows more widely accepted, POMS can transform anti-counterfeiting initiatives and protect the integrity of products worldwide.

Planning a new Product Ownership Management System (POMS) or wish to upgrade your existing traceability project to Web 3.0? Our expert team of professionals will assist you in every step of your development journey.

Last modified on September 1st, 2023 at 4:33 pm