{"id":536832,"date":"2023-01-07T18:01:00","date_gmt":"2023-01-07T15:01:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/using-blockchain-technology-to-combat-retail-theft\/"},"modified":"2023-01-07T18:01:00","modified_gmt":"2023-01-07T15:01:00","slug":"using-blockchain-technology-to-combat-retail-theft","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/using-blockchain-technology-to-combat-retail-theft\/","title":{"rendered":"# Using blockchain technology to combat retail theft"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e670426955\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e670426955\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/using-blockchain-technology-to-combat-retail-theft\/#%E2%80%9D_Using_blockchain_technology_to_combat_retail_theft_%E2%80%9C\" >&#8221; Using blockchain technology to combat retail theft &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/using-blockchain-technology-to-combat-retail-theft\/#Retailers_look_toward_blockchain_to_solve_retail_theft\" >Retailers look toward blockchain to solve retail theft<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/using-blockchain-technology-to-combat-retail-theft\/#Will_retailers_adopt_blockchain_solutions_to_combat_theft\" >Will retailers adopt blockchain solutions to combat theft?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Using_blockchain_technology_to_combat_retail_theft_%E2%80%9C\"><\/span>&#8221; Using blockchain technology to combat retail theft &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTIvYWU0ZmQ3Y2UtODZkMS00NGY3LThjNTctZTBkYTU0M2Q5Y2Y0LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-6ed77c39>The retail industry is one of the most important sectors of the United States economy. Unfortunately, the COVID-19 pandemic has left the trillion-dollar retail sector vulnerable to in-store theft.\u00a0<\/p>\n<p>Findings from the National Retail Federation\u2019s 2022 Retail Security Survey <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/nrf.com\/research\/national-retail-security-survey-2022\">show<\/a> that retail losses from stolen goods increased to $94.5 billion in 2021, up from $90.8 billion in 2020. Some retailers also have to lock away certain products to prevent theft, which may lead to decreased sales due to consumers\u2019 inability to access goods. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Retailers_look_toward_blockchain_to_solve_retail_theft\"><\/span>Retailers look toward blockchain to solve retail theft<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Given these extreme measures, many innovative retailers have started looking toward <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> to combat retail theft. For example, Lowe\u2019s, an American home improvement retailer, has recently implemented a proof-of-concept called Project Unlock, which uses radio frequency identification (RFID) chips, Internet of Things sensors and blockchain technology. The solution is currently being tested in several Lowe\u2019s stores in the United States.<\/p>\n<p>Josh Shabtai, senior director of ecosystem practice at Lowe\u2019s Innovation Labs \u2014 Lowe\u2019s tech wing that developed Project Unlock \u2014 told Cointelegraph that Project Unlock aims to explore emerging technology to help curb theft while creating better customer experiences. <\/p>\n<p><strong><em>Recent:\u00a0What is institutional DeFi, and how can banks benefit?<\/em><\/strong><\/p>\n<p>To accomplish this, Shabtai explained that RFID chips are used to activate specific Lowes\u2019 power tools at the point of purchase. \u201cSo if a customer steals a power tool, it won\u2019t work,\u201d he said. <\/p>\n<p>Shabtai noted that RFID chips are a low-cost solution that many retailers use to prevent theft. According to the National Retail Federation\u2019s 2022 Retail Security Survey, 38.6% of retailers already implement or plan to implement RFID systems. However, Shabtai explained that combining RFID systems with a blockchain network can provide retailers with a transparent, tamper-proof record to track in-store purchases. He said:<\/p>\n<blockquote><p>\u201cThrough Project Unlock, a unique ID is registered and assigned to each of our power tools. When that product is purchased, the RFID system activates the power tool for use. At the same time, the transaction can be viewed by anyone, since that information gets recorded to a public blockchain network.\u201d<\/p><\/blockquote>\n<p>Mehdi Sarkeshi, lead project manager at Project Unlock, told Cointelegraph that Project Unlock is based on the Ethereum network. Sarkeshi elaborated that each product under Project Unlock is tied to a pre-minted nonfungible token (NFT), or a digital twin, that will receive a status change upon purchase. <\/p>\n<p>\u201cA product\u2019s NFT undergoes a status change when it is either sold by Lowe\u2019s, if it has been stolen, or if the status is unknown. All of this information is publicly visible to customers and resellers since it\u2019s recorded on the Ethereum blockchain. We have essentially built a purchase authenticity provenance for Lowes\u2019 power tools,\u201d he said. <\/p>\n<p>While the concept behind Project Unlock is innovative for a large retailer, David Menard, CEO of asset verification platform Real Items, told Cointelegraph that his firm has been exploring a similar solution. \u201cTraditionally, RFID tags prevent theft, so this problem has already been solved,\u201d he said. Given this, Menard noted that Real Items combines digital identity with physical products to ensure that stolen items can be accounted for. He said: <\/p>\n<blockquote><p>\u201cIf physical items are paired with digital twins, then retailers can know exactly what was stolen, from where and from which product batch. Retailers can understand this with more clarity versus information generated by RFID systems.\u201d<\/p><\/blockquote>\n<p>According to Menard, Real Items currently has a memorandum of understanding with SmartLabel, a digital platform that generates QR codes for brands and retailers to provide consumers with detailed product information. He shared that Real Items plans to implement \u201cdigital product passports\u201d with SmartLabel products in the future. \u201cWe view digital product passports as the foundation for storing information about a product throughout a product\u2019s life cycle,\u201d he said.<\/p>\n<p>Menard further explained that Real Items uses the Polygon network to store product information. It\u2019s important to point out that this model differs from Project Unlock since a blockchain network is only used here to record information about a certain item. \u201cWe use a product\u2019s digital twin \u2014 also known as its NFT \u2014 for engagement. It can be tied to anti-theft, but it\u2019s more about providing retailers with useful data.\u201d <\/p>\n<p>While the solutions being developed by Lowe\u2019s Innovation Labs and Real Items could be a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>-changer for retailers, the rise of the metaverse may also help curb retail theft. According to McKinsey\u2019s \u201cValue Creation in the Metaverse\u201d report, by 2030, the metaverse could generate $4 trillion to $5 trillion across consumer and enterprise use cases. The report notes that this includes the retail sector. <\/p>\n<p>Marjorie Hernandez, managing director of LUKSO \u2014 a digital lifestyle Web3 platform \u2014 told Cointelegraph that designer brands like Prada and Web3 marketplaces like The Dematerialised, where she is also CEO, are already using NFT redemption processes. <\/p>\n<p>Hernandez explained that this allows communities to purchase a digital good in a metaverse-like environment, which can then be redeemed for a physical item in store. She said:<\/p>\n<blockquote><p>\u201cThis redemption process allows retailers to explore new ways to authenticate products on-chain and provide a more sustainable production process with made-to-order demand. This also creates a new and direct access channel between creators and consumers beyond point of sale.\u201d<\/p><\/blockquote>\n<p>Hernandez believes that more retailers will explore digital identities for lifestyle goods in the coming year. \u201cThis allows brands, designers and users to finally have a transparent solution for many of the problems facing the retail industry today, like counterfeit goods and theft.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Will_retailers_adopt_blockchain_solutions_to_combat_theft\"><\/span>Will retailers adopt blockchain solutions to combat theft?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Although blockchain could help solve in-store theft moving forward, retailers may be hesitant to adopt the technology for several reasons. For instance, blockchain\u2019s association with cryptocurrency may be a pain point for enterprises. Recent events like the collapse of FTX reinforce this.\u00a0<\/p>\n<p>Yet, Shabtai remains optimistic, noting that Lowe\u2019s Innovation Labs believes that it\u2019s important to consider new technologies to better understand what is viable. \u201cThrough Project Unlock, we have proven that blockchain technology is valuable. We hope this can serve as a proof point for other retailers considering a similar solution,\u201d he remarked. Shabtai added that Lowe\u2019s Innovation Labs plans to evolve its solution beyond power tools moving forward.<\/p>\n<p><strong><em>Recent:\u00a0Redeeming physical NFTs: Easier said than done?<\/em><\/strong><\/p>\n<p>While notable, Sarkeshi pointed out that it may be challenging for consumers to understand the value of using blockchain to record transactions. \u201cFor instance, if I\u2019m a customer buying a second-hand product, why should I care if it was stolen,\u201d he said. Given this, Sarkeshi believes that a shift in customer mindset must occur for such a solution to be entirely successful. He said: <\/p>\n<blockquote><p>\u201cIt\u2019s a culture building challenge. Some customers will initially not feel good about buying a stolen product, but we need this to resonate across the board. We want customers to know that when a product is stolen, everyone across the supply chain gets hurt. Building that culture may be challenging, but I believe this will h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en in the long term.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/using-blockchain-technology-to-combat-retail-theft\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Using blockchain technology to combat retail theft &#8220; The retail industry is one of the most important sectors of the United States economy. Unfortunately, the COVID-19 pandemic has left the trillion-dollar retail sector vulnerable to in-store theft.\u00a0 Findings from the National Retail Federation\u2019s 2022 Retail Security Survey show that retail losses from stolen goods&#8230;<\/p>\n","protected":false},"author":1,"featured_media":536833,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/ae4fd7ce-86d1-44f7-8c57-e0da543d9cf4.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74894,123006,91498,95118,78261,93542,74355,117,79289,70470,72287,112826,4965,67874],"class_list":["post-536832","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-blockchain","tag-e-retailer","tag-metaverse","tag-nft","tag-tech-analysis","tag-web3","tag-adoption","tag-business","tag-internet-of-things","tag-retail","tag-security","tag-solution","tag-technology","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/536832","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=536832"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/536832\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/536833"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=536832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=536832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=536832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}