NFC Tags and Blockchain: The Future of Contactless Digital Advertising

In recent years, smart devices have skyrocketed in popularity. And the more we can interact with our surroundings through smart technologies, the more potent they become. Near-field communication or NFC is one of the components that enables devices to interact with each other and exchange data, which is necessary for a seamless user experience for connected living. The numerous advantages of this innovative technology have caused it to become extremely popular. Many firms have benefited from opening up a world of limitless possibilities by fusing the benefits of blockchain with NFC. By combining blockchain and NFC technology, the reputed company vinID makes sure that every product has a distinct, dynamically encrypted ID. So, here let’s know how these technologies interact to produce the optimum qualities for a variety of sectors.

What Are NFC Tags?

Thanks to near-field communication technology, two devices can communicate wirelessly. The technology can be built into a tiny tag to allow data transfer between nearby mobile phones, tablets, laptops, and other equipment.

Applications that benefit from the fast interchange of a few pieces of digital information are where NFC tags are used. NFC tags are used in smartphones to enable mobile payments, which is one of their more well-known applications. Some phones enable payments by just tapping them against a scanner. There are virtually no restrictions on how NFC tags might be used.

How Do NFC Tags Work?

Radio waves are used by NFC tags to communicate. The NFC tag and the NFC reader exchange information using the NFC data interchange format. An NFC tag delivers radio waves that activate the antenna of a receiving device. The recipient confirms the supplied information to complete the information exchange.

The technique only functions over a 4-inch distance, which is extremely short. NFC tags are powered by another device, such as a smartphone, and operate without a battery.

To reduce unintentional transactions, an NFC reader only connects to one NFC tag at once. NFC chips exchange encrypted data while making a purchase. A smartphone can hold card information and then function like a regular card. All cards can be saved on the smartphone so users can make purchases without carrying around different cards in their wallets.

What Is Blockchain?

Let’s first define blockchain before discussing the advantages of integrating it with NFC. A network that is accessible by numerous users simultaneously is referred to as a “chain” in this context. A collection of blocks that store data on several servers make up this network. Each block represents a transaction and should have its own distinct identity. It includes all relevant transactional details, including who carried out the transaction, how much was spent, when it took place, and when it was completed. A new block is added to the chain after each transaction, converting it into a public “blockchain” that anyone can access.

How Does NFC Work with Blockchain?

Let’s talk about how NFC and blockchain combine to offer the best of both worlds. The focus of many firms is moving towards blockchain, and the top 10 global public companies are reportedly investigating blockchain as a potential improvement for their operations. Blockchain with Near Field Communication (NFC) technologies can be used to track things holistically. Blockchain-based anti-counterfeiting solutions now rely primarily on NFC. It can add an additional layer of security by guaranteeing the confidentiality of each transaction’s private key, which is required to update the Blockchain, by storing it on an encrypted NFC Tag.

At NFC Direct, we keep an eye on all of the NFC and blockchain-related developments and are able to work together on blockchain-related projects. Engineers and designers can create an unchangeable digital ledger and transparent exchange of electronic information using blockchain-based solutions. A middle step is required to link actual items to a blockchain and the advantages it can offer because blockchain alone only acts in the digital realm.

NFC tags act as that middleman. They convert actual things into digital places, markers, and things. As close physical proximity is required to engage with the NFC system, the comparatively narrow range of NFC sensors prevents interference from a distance.

When NFC and blockchain are combined into a single system, the shortcomings of each technology are balanced: NFC gives blockchain a way to interact with the physical world, and blockchain checks NFC tags to find and stop tampering.

Each node in a decentralized block-supply chain keeps a blockchain for each authentic product. An authentication event occurs with each block in the chain. The node that currently holds the product proposes a new block, which is verified by a number of other nodes, in order to update any information in the blockchain. A copy of the new block is added to each node in the network if the other nodes successfully validate the new block.

Supply chains with a lot of highly sensitive data are most vulnerable to compromise and are affected most severely by a breach. Researchers discovered over 95% of modification, copying, and reapplication occurrences in massive supply chain systems by decentralizing current protocols with blockchain technology. This can significantly raise the level of product quality for necessities in some sectors, such as the pharmaceutical industry.

The rising dilemma has a special solution thanks to blockchain and NFC. Supply chains can be made significantly safer by decentralizing processing, encrypting access, and including a physical element of security.

Why NFC Tags and Blockchain Are The Future of Contactless Digital Advertising?

While NFC and blockchain can offer greater security in a variety of applications, early adopters have already had experience integrating these technologies into their particular use cases. Applications in blockchain management, the upgrading of paper-based processes, sustainable manufacturing, and Internet of Things (IoT) security have all been studied by several research teams.

Preventing Fraud in Paper-Based Processes:

Employing blockchain is an obvious decision for financial firms. A verified record of previous transactions is created via blockchain, which makes it nearly difficult for one person to change it. Many foreign banks rely on paper-based documents like letters of credit, which NFC makes possible by enabling connectivity and electronic verification (through blockchain). The blockchain is updated almost instantly as a letter of credit is scanned via NFC in a mobile app to maximize transparency and guarantee true authentication from all parties.

Anti-Counterfeiting Supply Chains:

Blockchain management would experience previously unheard-of levels of security and efficiency with a blockchain that uses NFC to detect counterfeiting. A single point of failure, overworked processing servers, and huge digital record storage are just a few of the issues centralized blockchain face. Each node in a decentralized blockchain keeps a blockchain for each authentic product. An authentication event occurs with each block in the chain. 

Moderating Sustainable Manufacturing in Industry:

Blockchain makes it possible for private information to be confidently transferred between numerous entities without the need for middlemen. Manufacturing stands to gain significantly from the adoption of NFC and much more if it is integrated into a blockchain-enabled, sustainable manufacturing process. Because NFC makes it simple to identify and track components in a manufacturing process, highly specialized algorithms can be used to further optimize these systems. 


Therefore, a product’s unique serial number can be utilized to confirm that it is counterfeit-proof. The digital, online central database of all UIDs gives it an edge over traditional counterfeit protection. By simply scanning the NFC tag, the manufacturer and the client may both verify the legitimacy. As a result, every NFC clothing is anti-counterfeit. Technology utilization by fashion firms is becoming more and more essential as live platforms, social media, and digital innovation become increasingly important for communicating with customers. The development of technology is amazing, and this business will undoubtedly see many more advancements in the future.

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