Blockchain Technology for Authentic Product Identification in the Medical and Pharmaceutical Sector Using QR code and NFT (QR-NFT)

Abstract

Counterfeit products remain a pervasive challenge, undermining consumer trust and impacting global supply chains. In the pharmaceutical and healthcare sectors, counterfeit drugs pose a serious threat to patient safety, leading to ineffective treatments, health complications, and even fatalities. The World Health Organization (WHO) estimates that $10 \%-30 \%$ of medicines in developing countries are counterfeit [1], highlighting the urgent need for a secure verification mechanism. Leveraging blockchain technology integrated with QR codes & NFT tags offers a powerful solution for authentic product identification. This study proposes a decentralized framework where unique QR codes, linked to blockchain records & Non-fungible tokens, enable end-to-end traceability and secure verification of product authenticity. Each product is assigned a unique digital identity recorded on an immutable blockchain ledger, accessible through a simple QR code scan linked to an NFT token that shows the ownership details of the product. The system enhances transparency, empowers consumers to verify product authenticity, and strengthens brand protection. The integration of NFTs with QR codes enhances authentication accuracy by up to $85 \%$, reducing the risk of counterfeit drugs entering the supply chain [2]. Unlike traditional QR codes, which can be duplicated, NFTs provide a unique, tamper-proof digital certificate that verifies product legitimacy, ensuring a higher level of security. This paper explores the technical implementation of the proposed solution, evaluates its application across industries, and addresses challenges such as scalability, user adoption, and cost efficiency. The findings demonstrate that blockchain, NFT, and QR code integration can significantly enhance product authentication, creating a safer and more trustworthy marketplace.