450 billion dollars damage a year through proficiency counterfeits – now Iota and Objectide are proceeding
- Product counterfeiters cause damage of $ 450 billion a year worldwide because conventional controls are obviously inadequate.
- ObjectID and IOTA are now putting techniques such as the “digital fingerprint” and Feate Ledger in order to trace products back and expose counterfeits.
Fake products every year cause an estimated damage of $ 450 billion, especially in the areas of pharmaceuticals, fashion, cosmetics and luxury brands. A large part of this crime takes place online because fake goods could be easily spread via the Internet. Conventional databases do not offer the problem.
Counterfeiting is a $450 billion/year problem eroding trust in global supply chains
The solution isn’t better databases
It’s a new layer of trust built on decentralized identity
To understand this revolution, we’ve launched a new, essential course in our Academy, focused on… pic.twitter.com/0gBqg67tkg
— TokenLabs.network (@TokenLabsX) July 24, 2025
Tokenlabs.network shows the weaknesses of central systems and suggests an alternative with decentralized identity verification. Objectid and Iota, both of which work with tokenlabs, lead their own initiative that aims to create counterfeiting digital identities for physical goods. Objectide assigns a digital fingerprint to every product, while Iota provides a public, insensitive ledger system that records the product history. The system supports both fixed data records and live product tactualizations without impairing data integrity.
As a further step towards building understanding and support, Tokenlabs has developed an educational module through his academy. It explains how decentralized identity systems can close security gaps in the current supply chain model and improve the traceability of products. The system avoids the collection of personal data, which reduces the complexity of compliance with regulations for companies, while records remain accessible to the review.
Digital product IDs can contain the online sale of counterfeits
IOTA’s certification function creates counterfeiting records using cryptographic hashes. These can be blocked for permanent product identification or remain open to updates across the life cycle of a product. The model protects against counterfeits, even if the products go through many hands. Every unauthorized change in the data can be easily recognized.
Objectide has taken another step to make the system scalable and recently patented its unique product identity system, which builds on the distributed ledger from IOTA. Instead of storing the data in a single location as with conventional systems, the method decentralizes the identity process and thus eliminates a frequent source of error. Updates that have been shared via the IOTA blog and partner sources indicate that this can support a scalable product review level for supply chains.
Online marketplaces are still the main source for the distribution of fake products, and the speed at which these goods appear exceeds the range of standard verification methods. By connecting each product with a secure digital ID, examiners, retailers and consumers can access an unchangeable real-time detection. This could reduce the space for the spread of counterfeits.
Supplier control and regulation
The industry-wide introduction of objectide and IOTA technologies not only depends on the technical success, but also requires the active participation of regulatory authorities, manufacturers and dealers. Each weak point can restrict the function of the system. The manufacturers would have to assign the products to the original location of digital identities, and the buyers need instruments to check them.
Tokenlabs argues that the combined solution enables a continuous visibility of the product in the entire supply chain, so that the authenticity of a product can be tracked and certified from production to sale in retail. This could help to restore the public’s trust in the authenticity of products, especially in areas in which counterfeits are both common and dangerous.
There is no quick solution, but the model lifts the fight against counterfeiting on a new level by focusing on proof of origin and using cryptographically secured data traces, since IOTA and objectide tackle the structural problems behind counterfeits and not just the symptoms.
The technology uses the distributed structure of IOTA and the signed identities of Objectide to create a verifiable, clear data set that makes mass fakes economically unprofitable. It may not stop counterfeiting immediately, but a selective introduction can significantly reduce the volume. With a volume of $ 450 billion, this potential could cause broader acceptance in both industry and the regulatory authorities.
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