A Silicon Valley startup called Chronicled has developed a way to authenticate designer sneakers using blockchain technology. Rather than relying on labels that counterfeiters can copy, the company em
A Silicon Valley startup called Chronicled has developed a way to authenticate designer sneakers using blockchain technology. Rather than relying on labels that counterfeiters can copy, the company embeds a smart tag with a PKI chip into each shoe. The tag contains an encrypted private key while Chronicled stores the corresponding public key on Ethereum's blockchain. Customers scan the tag with a phone to verify authenticity and register the sneakers through an app.
The company describes the system this way: "The blockchain registration functions as a digital deed of title for… sneaker[s] that cannot be forged, but can be transferred in the event of a sale or trade, proving authenticity and provenance of the sneakers into the secondary market."
The problem Chronicled addresses is enormous. The counterfeit market reaches nearly $2 trillion worldwide. Experts estimate that counterfeiters account for about 75% of high-end sneakers listed on eBay. The smart tags resist tampering because the antenna inside breaks if someone removes the tag, preventing criminals from placing it on a fake shoe. According to Chronicled, the tags "can not be duplicated" and "are tamperproof."
The startup tested the technology with Mache Customs, a respected designer of high-end custom sneakers. Mache Customs released a collection with the embedded tags as a tribute to Kanye West and his daughter. More recently, Major, a sneaker shop in Washington, deployed the tags in a limited-edition "MAJOR Reebok Phase 1 Pro USA" release timed for Independence Day.
This marks one of the first uses of blockchain to solve an existing problem in a way that wasn't possible before. The technology could reshape how people establish ownership and verify authenticity across many markets. A tamper-proof ledger that tracks ownership makes proving property rights simpler.
George Hallam, who handles external relations for the Ethereum Foundation, sees this as validation of the technology's promise. "The services Chronicled are offering highlight the ever-closing gap between the promise of blockchain technology and its actual utilisation in the real world," he said.
The implications extend beyond sneakers. Bicycles, automobiles, phones, and laptops could all benefit from blockchain-based authentication. Hallam expressed enthusiasm for these non-currency applications: "At the Ethereum Foundation, we welcome demonstrations of the versatility and capability of the Ethereum platform and its underlying technology."
Scalability presents a challenge. A global authentication system would need to process tens or hundreds of millions of transactions. Bitcoin struggles with this constraint, but Ethereum's developers argue their blockchain can scale to handle unlimited transaction volume.
Startups, banks, and major technology companies have raced to deploy blockchain in 2016. The convergence of blockchain with cloud computing, data analytics, wireless sensors, and smart contracts may fuel what researchers call the fourth industrial revolution, an integration of physical devices into digital networks.
Chronicled may be the first to crack a widespread problem using blockchain, but the technology's toolkit is broad enough that others will follow.
