Today Bitmark is pleased to announce a partnership with Chibitronics — together we are launching an anti-fraud protection system for hardware companies, built on the Bitmark blockchain.
Chibitronics will assign their Love to Code kits with labels which are linked to digital property titles, known as “bitmarks” recorded in the Bitmark blockchain. This application offers Chibitronics an automated warranty tracking system for their products, ultimately restoring security and trust to both Chibitronics and their customers.
Warranty fraud is a rampant and costly epidemic for hardware and consumer electronics companies, large and small. It has been estimated that companies lose 5–10% of their product revenue to fraudulent product repairs and renewals, and even more to operational costs for customer support.
Chibitronics co-founder, bunnie huang came to Bitmark with the idea: In the same way that the Bitcoin blockchain can prevent double-spending digital currency, hardware products that are linked and viewable via the Bitmark blockchain will have a trackable provenance, thus cloning and warranty fraud are more easily detected and averted.
“Bitmark has provided us with a turn-key solution for serialization and front-line warranty support, thus streamlining our operational costs. Furthermore, the anti-fraud protection inherent in Bitmark serialization ensures that our operating margins are not eroded by external costs incurred by supporting hardware clones and fraudulent returns.”
— bunnie, Co-founder Chibitronics
How it works
Chibitronics kits will each come with a coded product label (a randomized set of words, similar to a secure passcode) which is then linked to a bitmark, recorded in the Bitmark blockchain. Each kit’s bitmark is a unique digital fingerprint that retains verified product information, and a viewable chain of ownership should the kit be passed or sold to other individuals. Ultimately, each kit has both a physical and a digital mark of authentication verifying it as a Chibitronics product.
How bitmarks are assigned
How bitmarks are used for customer support
This kind of digital warranty gives Chibitronics the following advantages for managing their products and customer support:
- Bitmarks are permanently viewable on the Bitmark blockchain: Chibitronics’ customer support team, manufacturers, distributors, and the entire supply chain, will be able to view product information of any product codes they have issued.
- Customer support is automated: the efficiency of reading a blockchain to verify a customer’s product code is greater than any other warranty system yet available.
- Bitmarks are incorruptible: The tamper-evident label on each kit is linked to one, and only one bitmark. Any changes or alterations to the label or bitmark can be detected easily, and then dealt with appropriately.
- Companies can reap the benefit of higher revenue: With this faster, more traceable, automated, secure and authenticated hardware warranty system, companies can invest in better products.
- An automated system is better all around: Bitmarks make product ownership easily authenticated and trackable for both the company and customers (no need to keep proof-of-purchase files around!).
What this means
By enabling the Bitmark system, hardware companies large and small will be able to streamline and stabilize their customer support systems, thus opening up the possibility to invest in better products and provide greater value to their customers.
“This launch shows that our technology is getting mature enough that people outside of our company are coming to us to use it to solve their problems and pain points. This partnership reveals the multitude of ways Bitmark can help pave the way to a more trustable and free digital environment. ”
—Sean Moss-Pultz, Bitmark CEO
In the same way that we have rules about physical property, Bitmark establishes a framework of rules that authenticates digital property, by using a blockchain. Property titles lend clarity and freedom to the rules of our possessions. When clear property rules are established, you can rent, license, loan, resell, and share your belongings because your things are now part of a system of trust and reliability. Linking your hardware property to the Bitmark blockchain with an unforgeable digital title, re-establishes trust in a sector fraught with fear, misuse, and dishonesty.
More about Chibitronics
Chibitronics is a company that makes electronic stickers, which let you create, craft and code technology through arts and crafts. Co-founder, bunnie huang approached Bitmark with the idea to launch this anti-fraud protection for their products.
More about bitmarks for fraud-proof serialization
To read more specifics about the ways in which Bitmark can help companies alleviate warranty fraud issues, and help restore trust to a broken business model, read our recent blog post “Hardware companies can use Bitmark to solve warranty fraud.”
If you are interested in using the Bitmark blockchain to authenticate hardware or inquire about a business partnership, we would love to hear from you. Please email email@example.com.