With corporates and business understanding the power that the blockchain systems and the distributed ledger technology (DLT) entail, they have been harnessing the privacy, security and the transparency that these systems offer.
New Balance teams up with IOHK
IOHK, the company behind that Cardano (ADA) coin, had an announcement to make at the Cardano Summit in Bulgaria. IOHK CEO Charles Hoskinson announced that the popular footwear brand, New Balance will adopt Cardano’s blockchain to fight the counterfeit problem that been a growing menace.
This is another addition to the long list of fashion brands that have joined forces with blockchain tech firms to improve security measure.
Charles Hoskinson stated that the program will begin as a pilot program but will eventually branch out into the open world. What the CEO of IOPHK did not clarify is which brand line will be benefitting from the blockchain solution and if ADA, Cardano’s crypto token. Will be having a role to play in the new Brand’s market schematics.
The counterfeit problem
New brand has had a counterfeit problem to deal with. Back in 2017, it also won a case against the Chinese government when it was found that a footwear fashion line was copying designs from the original firm and selling them under the name, ‘New Boom’. The Chinese government ended up paying one billion dollars ($1.5B) as restitution.
Nevertheless, as to how the Cardano’s blockchain will help with the process, is unclear as neither New Balance nor Cardano have disclosed any information about the tagging process. The best bet at it would be that Cardano aims to tag the product with a unique cryptographic identifier that will be verified using the smart contract on the blockchain for that product. That’s all we’ve got to go with until either of the two firms explain it themselves.
The US Food and Drug Administration (FDA) had several pharmaceutical companies collaborating with it to fight counterfeits as well. This was a pilot program that was a pilot program as well, announced in May.