Bonafi - Authenticating the Supply Chain Using Blockchain Technology
Bonafi is on a mission to defend all brands, big and small, and to protect consumers
from counterfeits by implementing a fail-safe authentication system using blockchain
technology. The central questions it answers are:
“Who is the manufacturer?”
“Who is authorized to sell it?”
“When was it produced?”
“When did it arrive at this store?”
“Is it the real thing?”
Bonafi integrates four major components to fight the counterfeit industry (U.S. Patent
1. Blockchain technology
2. Crypto-Tag™ - a crypto-enabled NFC tag,
3. BONA Tokens
4. Mobile Application
The Company’s BONA tokens are used for charging the mobile Application and they
allow users (retailers & consumers, and third-party sellers) to scan the Crypto-Tag™
to determine the authenticity of goods.
The impact counterfeit goods have on the fashion, and pharmaceutical industry is
estimated to be $700 billion/year. This does not include collateral damage caused
by counterfeit goods: legal battles between brands and consumers, additional cost
to repair or replace counterfeit goods, medical problems caused by inferior materials
used in counterfeit goods, and even death.
Bonafi’s authentication system, built on the blockchain, will verify genuine goods
throughout the supply chain from the manufacturer, to the retailer, and to the consumers
using mobile Applications powered by BONA tokens.
Video about bonafi By Steve Kuh – Founder & CEO of Bonafi
How It Works
Our digital label, Crypto-Tag™, is affixed to a product and used as the engine that will
deliver relevant data to the end-user, verifying a product’s authenticity. Information, such
as the original manufacturer, when it was produced, where it was produced, when it
arrived at an authorized reseller’s store, and even the current or past registered owners
(with their permission, of course), will be used to verify the authenticity of a product
using a mobile Application compatible with all iOS, Android, and Window devices.
Blockchain Digital Label Network
Shown in Figure is a network of blocks conceptually interconnected on a blockchain.
Each product’s information would form a block of information, beginning with the
initial block created by the original manufacturer and recorded on the Crypto-Tag™.
Transactional data will be recorded on the blockchain as it moves through the supply
chain, building a unique “fingerprint” for each product connected by unique Hash
functions, as shown in Figure 2. Each block will be created by the Crypto-Tag™ and
mobile App and authenticated with the combination of Public and Private Keys created
at the beginning of the supply chain.
Blockchain Formation, (n=1)
How It Works Continued
The Crypto-Tag™ is equipped with Near Field Communications (NFC), flash memory
storage, and public key cryptographic engine that will serve to send data to and from
the blockchain and the mobile App. Also, the flash storage allows manufacturer’s data
to be stored securely on the Crypto-Tag™, i.e., the manufacturer’s ID, Cryptographic
digital signatures, and other pertinent data from the manufacturer.
Once a product leaves the manufacturer, the relevant data will be recorded on the
blockchain, encrypted by a unique Private Key. Each Crypto-Tag™ on a product will
store the original manufacturer’s information, encrypted with the Public Key.
As shown in Figure 3, the product with the tag leaves the manufacturer and is scanned
at each point of the supply chain, such as the departure from the manufacturer, the
port of export/import, and authorized reseller’s store. Each time the Crypto-Tag™ is
scanned, necessary information will create a new block on the blockchain and will
also be stored on the tag.
Thus, when a consumer scans a product with the Crypto-Tag™ for authenticity, the
mobile App will cross-reference the data on the tag and the blockchain verifying if the
product is genuine. The Crypto-Tag™ plays a central role in the authenticity solution
provided by the Company. And the consumer would use the Company’s BONA tokens
to enable the App and authenticate the goods.
Functionally, a Crypto-Tag™ is similar to the NFC chip, such as that shown in Figure
4. The digital tag is versatile and can be made water-proof. It is scanned by Near-
Field Communications (NFC) mechanism built into mobile devices. Upon placing the
phone near the Crypto-Tag™, the App will pop up, while wirelessly powering the tag,
communicating with the device, performing the necessary Hash functions, executing
the public cryptographic routines, and reporting its authenticity.
NFC Based Cryptographic Digital Label
Possible counterfeit attack cases of the tag:
1. Copy The Tag:
This is simply not feasible. The Crypto-Tag™ is implemented with a microcontroller, a
Public Key cryptographic engine, and an NFC. The Public Key system is unbreakable,
for all practical purposes. The company is looking to design various types of Crypto-
Tag™ so that it would be readily integrated into a logo, a paper label, a plastic wrapper,
or inside the plastics of the product.
2. Forced Detachment or Removal of the Tag:
It is designed such that, if the Crypto-Tag™ is detached or removed from the product,
it would be destroyed in the process. This destruction would render the tag useless
and be an indication that it has been tampered with.
The BONA token is the currency that will be used to power the App. The end-user,
who will be using the App to verify the authenticity of a product, will use BONA tokens
to pay for the validation. If the product scanned is not authentic, the user will not be
charged, or BONA token will be refunded. Also, if a consumer adds to the blockchain by
adding the owner’s registration data using a proper verification system, the consumer
will also be rewarded with BONA tokens.
The cost and reward of authentication will vary and be determined by an algorithm
that measures the retail price, demand, total number of scans, and various factors
about the product. For example, a pair of Air Jordan’s might cost 0.1 BONA tokens to
authenticate, while a Birkin Bag will cost 1.5 BONA tokens to authenticate.
BONA tokens can be purchased directly from the Company through the mobile App
or on a national coin exchange (in the future upon which time it is guided by the
factors, such as favorable market conditions, governmental regulations, and the
company). The purchase of tokens via the App may be priced higher than the price
on the exchange due to the added convenience. At the company’s sole discretion,
the App may contain an initial free trial of BONA tokens on the first download of the
App and on upon successful user registration.
The final piece of the authentication system is the App. The App is designed to run
on iOS™, Android™, and Windows™ phone/tablet devices that support NFC technology
and will be available in the Apple App Store™, Google PlayStore™, and Windows Store™.
The App will translate the data on the Crypto-Tag™ and the blockchain and notify the
end-user if a product is authentic. As mentioned in the section, titled “BONA TOKENS,”
users must spend BONA tokens in the App to receive authentication. BONA tokens
will also be available for purchase within the App.
In Figure 5, we have a basic user interface on how the App will deliver the authentication
to the user and the relevant data that will be used to verify the authenticity of a product.
Image on the left represents an authentic item and the right is counterfeit.
Tokenomics of Bona Token
Company currently plans to mint two kinds of tokens, security and utility. The security
tokens will be called BonaS-Token. A total of 100,000,000 BonaS-Tokens would be
minted. The utility tokens will be called BonaU-Token. A total of 100,000,000,000
BonaU-Tokens would be minted.
Since BonaS-Tokens are security tokens, these would represent shares of the company.
However, there would be no voting rights and no dividend benefits. While there is no
national security token exchanges approved by the Security Exchange Commission
exist today, it remains to be seen if such exchange would be established in the United
States America soon.
As for the utility tokens, BonaU-Token, it will represent no shares of the company
and have no monetary value other than those required to have a minimum value to
be listed on coin exchanges around the world. However, the BonaU-Tokens would
serve to fuel the phone App and allow users to be able to authenticate the goods and
scan the Crypto-Tag™. The manufacturers would transmit the BonaU-Tokens to its
customers as part of its rewards to engage with customers.
Company also plans to freely give away a limited amount of the BonaU-Tokens during
its marketing campaigns. At its sole discretion, the BonaU-Tokens would be given away
to public for purpose no other than to use it on the phone App to authenticate goods.
The Big Picture
As shown in Figure , Bonafi’s authentication system will utilize the following four
major components to authenticate products: Crypto-Tag™, mobile App, the BONA
tokens, and the Blockchain.
1. The verification process starts with the manufacturer adding the Crypto-Tag™ to
a product with the cryptographically encoded identity data and creating a block of
data on the blockchain using the Application.
2. Additional data is added to the blockchain via Crypto-Tag™ and the mobile Application.
3. BONA tokens are used to power the App and receive authentication data from the
With the power of blockchain technology and everyday mobile devices, Bonafi is
determined to mitigate counterfeits from entering the market.