Not Every Product Needs a Unique Blockchain Link — And Here’s Why

As the conversation around product digitisation evolves, many brands are exploring how blockchain can play a role in traceability, authenticity, and consumer engagement. A common approach is assigning a unique digital link to each product — a blockchain-backed identity that can unlock everything from ownership to sustainability data.

But here’s the thing: not every product needs this level of authentification and security. In fact, for some categories, applying a blockchain solution per unit can be inefficient and even unnecessary.

This article breaks down the what, why, and when of product serialisation on blockchain — and how to make smart, use-case-driven decisions.

What Is a Unique Digital Link on Blockchain?

A unique digital link typically refers to creating a one-to-one relationship between a physical product and a digital record on the blockchain. This might take the form of:

• A QR code or NFC chip embedded in the product

• An associated NFT or digital certificate

• A smart contract entry with metadata such as origin, materials, ownership history, or batch info

These digital identifiers do more than just store data. They enable brands to:

• Prove authenticity

• Track ownership and resale

• Activate sustainability efforts (repair, recycling)

• Create engaging post-sale experiences

• Build a product’s digital lifecycle

Why Doesn’t Every Product Need It?

While the tech is powerful, it’s not one-size-fits-all. There are three key reasons why brands should be thoughtful before applying unique blockchain links to every SKU.

1. Scalability & Cost

Creating, maintaining, and embedding a unique digital identity per product can be expensive — especially when you're producing at scale.

• For low-margin items like T-shirts, socks, or cosmetics, assigning individual digital records doesn’t always deliver proportional value.

• In these cases, brands can opt for batch-level tracking, which groups products under a shared digital identity (e.g., “Spring 2025 T-shirt Drop”).

2. Use Case Relevance

Blockchain adds value when there’s a reason to verify, transfer, or interact with a product digitally.

• If your product doesn’t require traceability, proof of originality, or ownership transfer, then blockchain might be overkill.

• For example, a disposable water bottle might not need its own blockchain ID — unless you're using it to track recycling impact, offer loyalty points, or support a reuse campaign.

3. Product Type & Value

The higher the value and uniqueness of a product, the more useful a one-to-one blockchain link becomes.

• Think: luxury handbags, designer sneakers, watches, art pieces — all of which benefit from traceability and digital ownership.

• For mass-produced commodities, on the other hand, the cost-benefit ratio often doesn’t justify it.

When DO You Need Unique Blockchain Links?

To help you decide when to apply a unique blockchain-based ID to each product, here are the top use cases that make it worthwhile:

Authenticity & Anti-Counterfeiting

• Luxury fashion, collectibles, wine, and designer goods

• Consumers want proof that the product is the real deal

Product Lifecycle & Circularity

• Track repair history, ownership, recycling efforts, or upgrades

• Create incentive loops for sustainable behavior

Resale & Ownership Traceability

• Enable secure, verified secondhand markets

• Add royalties for resale or unlock new business models

Digital & Experiential Tie-ins

• Connect physical items with digital content, NFTs, loyalty perks

• Create hybrid physical-digital ownership experiences

Supply Chain Transparency

• Bring visibility to sourcing, ethical production, and environmental impact

• Allow consumers or auditors to verify claims on demand

Final Thoughts

Blockchain isn’t about tagging everything — it’s about creating trust, transparency, and new value in the right contexts. The beauty of serialization is that it allows brands to layer physical and digital meaning in ways that weren’t possible before.

So before you tokenize every sock, ask yourself: Is this solving a real problem or just adding noise?

At our core, we love blockchain — we believe in its potential to reshape industries and empower both brands and consumers. But more than anything, we’re here to serve our clients first. That means we’ll always recommend what’s best for your business, your customers, and your long-term goals — whether that includes blockchain, or not.

Being selective, strategic, and customer-focused is the real innovation.