Cardano, a public blockchain, is reportedly partnering with major shoe brand New Balance to help combat counterfeiters.
By authenticating the company’s premium line of training shoes, Cardano can produce blockchain-based data that consumers and retailers can trust, adding value to products and solving real-world problems of physical goods.
Charles Hoskinson, co-creator of Ethereum and CEO of IOHK, the development company behind Cardano, tells Decrypt,
“It provides a lot of things to New Balance that they’re really struggling with. Last year New Balance confiscated around 25 million pairs of fake shoes. Authentication is a very expensive proposition for a bunch of brands. What we can bring to the table is not only a very better way for them to accommodate this but also potentially create a marketplace.”
Similar to VeChain, a blockchain platform for enterprises that has formed several corporate partnerships to authenticate goods by tracking data along the supply chain, Cardano can challenge the counterfeiting industry that has swelled to an estimated $1.13 trillion in losses in 2018, according to data compiled by the International Trademark Association (INTA).
According to the INTA report,
“In 2022, the total estimated value of counterfeit and pirated goods including digital piracy is projected to reach an astounding $1.90–$2.81 trillion.”
“Rolex, Louis Vuitton, Gucci – if you work with these companies, you can dramatically reduce counterfeiting risk, create better supply chains and better markets for their goods.”
Founded in 1906, Boston-based New Balance is one of the world’s major sports footwear and apparel manufacturers. The company reports annual net sales of $2.8 billion.
New Balance is expected to make an official announcement about the Cardano partnership in October.