Serialization involves assigning each product on a production line a unique, encrypted number, which is stored in a database along with relevant product information. This digital identifier acts as a "digital twin" of the physical product—a virtual representation containing all key data. The digital twin allows the product to be accurately traced back to its manufacturer by matching its unique identifier in the database, enabling reliable authenticity checks.

A digital twin is a real-time digital counterpart of a physical object or system. In the context of serialization, the digital twin holds critical data that mirrors the actual product, including its origin, manufacturing details, and any additional data connected to the product life cycle.

This process is especially crucial for industries like cosmetics, where product piracy not only costs businesses billions but also poses health risks to consumers. By utilizing serialization and digital twin data, original products can be unmistakably identified, while counterfeit items are quickly detected and exposed, protecting both consumers and brands from the dangers of fraudulent goods.