How Blockchain could be the answer to retail theft

Over the years, several individuals and companies have tried to find a solution to this threat, but to little avail. However, that may soon change thanks to Lowe’s. The US home improvement giant is working on a solution that combines blockchain and other new technologies to deliver the necessary blow to retail thieves. Lowe’s has dubbed this anti-theft system “Project Unlock,” and it could have huge potential in the future.

But what is Project Unlock and how does it work? Join us to find out.

Project Unlock – What is it?

For the longest time, shopkeepers have used traditional means – such as heavy lock and key mechanisms – to prevent thieves from stealing their goods. However, experts suggest that this approach often pushes customers away and ultimately leads to reduced sales. Moreover, judging by the statistics, these methods have not been very effective.

With this in mind, Lowe’s Companies Inc has decided to work on a smarter solution – Project Unlock. It uses low-cost RFID (Radio Frequency Identity) tags in combination with the Internet of Things (IoT) and blockchain technology to create a virtual security system that can prevent theft of goods in a store.

Two interconnected systems are at work here. The first part of the protocol is the Point-of-Sale (PoS) activation system. This system ensures that only goods that have been purchased legally will be activated and become operational. While items that are stolen will not be activated and will not work.

To achieve this, Lowe’s puts RFID tags on each of its products. These chips contain unique serial numbers assigned to the products, and when scanned during purchase, they activate those products. In the case of Lowe’s, most of these products are power tools such as drills, nail guns, electric saws, etc.

The second component of the protocol uses blockchain technology to maintain a transparent, immutable record of transactions and legal purchases. These transaction details are tamper proof and accessible to everyone. Project Unlock will maintain a transparent record where the purchases will be documented without revealing the details to the buyers.

As a result, if someone tries to resell a stolen item in the market, the buyer can easily check the authenticity of the product and check if it is a stolen item. To achieve this, the company will create unique NFTs (Non-Fungible Tokens) for each item in its store.

Potential use cases of Project Unlock

Lowe’s believes that Project Unlock can be established as a security measure on a much larger scale and the company sees a world of possibilities with their solution. First, the system can be adapted to any product with moving parts or electrical components, such as appliances, cars, smartphones and other gadgets.

It can also be adjusted for other industries and products. For example, David Menard, CEO of asset verification company Real Items, stated that they have reached an MOM with SmartLabel, a company that generates QR codes for brands and their products. Through this partnership, Menard is trying to create “digital passports” (in the form of NFTs) for products. This system will help track a product’s history throughout its lifetime. While this may not do much in terms of security, it offers an easy way to verify the authenticity of a product, and this can be useful across industries.

However, the only challenge remains in people’s limited understanding of blockchain technology, and that may be a barrier to greater adoption of blockchain-based security solutions. People also associate blockchain with cryptocurrencies, and judging by what happened in the crypto space over the previous year, traders may be skeptical. However, Lowe’s believes that this will not inhibit the development or adoption of Project Unlock. The company believes that without adopting new technology, it will apparently be impossible to survive in the future.

Conclusion

The blockchain revolution has only just begun, but it has already managed to revolutionize the way several industries and businesses operate. And while it remains to be seen how Project Unlock unfolds over the coming years and how it might be implemented across other types of products in the future, the potential of such a system is unquestionable.