Blockchain and product warranty
Blockchain and product warranty
Blockchain

Blockchain and product warranty

By Stefania Stimolo - 8 Dec 2018

Chevron down

Blockchain technology can also be the solution that simplifies the processes within the warranty sector, allowing for better verification, speed and transparency so as to improve after-sales service and complaints, thus providing greater security to consumers.

In the warranty industry, case histories report that very often warranty companies, sellers and end consumers are not well informed if there is a warranty on products, what it covers and who to contact, additionally the time-frames are frequently inefficient.

It is also often the case that information is lost on the way.

The end consumer knows that the product purchased is under warranty thanks to the statement of the seller who receives it from the wholesaler, who in turn receives it from the manufacturer, which in turn could have used external warranty companies.

It can even happen that the warranty is on the receipt to be kept, or maybe in a place hidden inside the box or in the instruction manual of the product purchased; these situations can create problems for the final consumer.

On the other hand, warranty companies spend a considerable amount of time searching for their actual competence for the product or spare part to be warranted.

Ultimately a lot of confusion arises due to too many actors interacting, information flows that are too complicated and too many different methods.

Blockchain technology is an ideal solution to simplify the entire warranty industry.

The type of use involves encrypting a tamper-proof serial number.

In this way, you can track the progress of a product throughout the supply chain directly on the blockchain, including the chain of custody.

In this respect, the IT giant IBM said:

Equipment manufacturing date, ship and install date, proof or ownership and service entitlement are key data points that must be tracked, certified and accessed in order to provide seamless warranty entitlement and service delivery. By offering a single, shared ledger showing all transactions, approvals and certifications to all parties, in real time, blockchain will enable more efficient warranty entitlement and faster service delivery”.

The end customer, therefore, during a moment of panic caused by the breakage of the product itself, will file a complaint, while the warranty company in charge will be able to check on the distributed ledger the proof that the product is actually within their competence, verifying on the blockchain that it has been delivered to the consumer.

By being able to quickly verify the authenticity of the complaint and therefore also of the product, it will be possible to leave the counterfeit products out of the supply chain.

Not only that, but also leaving out any fraudulent claims, ie created intentionally to receive warranty service on non-original items.

This will generate security for the end consumer who buys blockchain-certified products.

Stefania Stimolo

Graduated in Marketing and Communication, Stefania is an explorer of innovative opportunities. She started out as a Sales Assistant for e-commerce, and in 2016 she began to develop a passion for the digital world, initially in the Network Marketing sector, where she discovered and became passionate about the ideals behind Bitcoin and Blockchain technology, which lead her to work as a copywriter and translator for ICO projects and blogs, and organize introductory courses.

We use cookies to make sure you can have the best experience on our site. If you continue to use this site we will assume that you are happy with it.