Red Flag Governance
FenixTrace's Red Flag system is a decentralized quality assurance mechanism for the supply chain. It allows authorized users (Red Flaggers) to report products with potential irregularities, creating immutable and publicly verifiable records on the IOTA blockchain. Every report is traceable, notarized, and visible in the public scanner.
What is the Red Flag System?
The Red Flag system is a decentralized governance mechanism designed to ensure the quality and integrity of products tracked on FenixTrace. Unlike traditional centralized quality assurance systems, the Red Flag system relies on the IOTA blockchain to ensure reports are immutable, transparent, and verifiable by anyone.
When a Red Flagger identifies a product with potential irregularities, they create a report that is recorded on-chain via smart contract. The report includes a detailed description of the issue, the type of irregularity, and optionally documentary evidence stored on IPFS. Once recorded, the report is visible to everyone in the public scanner.
The fundamental principle is transparency: red flags cannot be deleted or modified, and anyone can independently verify the authenticity of every report by checking the blockchain. This creates a system of accountability and trust in the supply chain.
Report Categories
Quality
Product quality issues, defects, non-compliance with declared standards
Authenticity
Suspected counterfeiting, non-original product, counterfeit brand
Safety
Consumer safety risks, hazardous substances, undeclared allergens
Compliance
Violation of regulations, expired or missing certifications
Other
Other irregularities not classified in previous categories
Reporting Workflow
The reporting process follows a 6-phase flow, from irregularity identification to public visibility in the scanner. Each phase involves different actors and creates verifiable on-chain records.
Irregularity Identification
An authorized Red Flagger identifies a product with potential irregularities during an inspection, audit, or external report. The irregularity may concern quality, authenticity, regulatory compliance, or any supply chain aspect requiring attention.
Report Creation
The Red Flagger accesses the Red Flagger dashboard and creates a new report specifying: the affected product (selecting it from the scanner), the irregularity type (category), a detailed description of the issue, and optionally documentary evidence uploaded to IPFS. The report is prepared for wallet signing.
On-Chain Signing & Registration
The Red Flagger signs the transaction with their IOTA wallet. The smart contract records the flag on-chain with all metadata: flagged product, reason, timestamp, Red Flagger address, and IPFS hash of evidence. From this moment the flag is immutable and verifiable by anyone.
Flag Notarization
A second wallet signature is requested for flag notarization. This creates an additional on-chain record certifying the integrity and authenticity of the report. Notarization is the cryptographic proof that the flag was created by an authorized Red Flagger and that data has not been tampered with.
Public Visibility in Scanner
The red flag is immediately visible in the public scanner. The flagged product shows a red "RED FLAGGED" badge, the product card has a red border, and the detail page shows the complete notice with all report details, the on-chain transaction link, and attached evidence.
PDF Label with Flag
When a PDF label is generated for a flagged product, the Red Flag section is automatically included in the label with the report reason and visual warning. This ensures that even printed documents reflect the product's alert status.
Roles & Permissions
The Red Flag system involves four main actors, each with specific permissions and responsibilities. Role separation ensures accountability and prevents system abuse.
Super Admin
The Super Admin has full control over Red Flag governance. Can appoint and revoke Red Flaggers, monitor all reports, and manage disputes. Has access to the complete admin dashboard.
Permissions
Appoint new Red Flaggers from the admin dashboard
Revoke a Red Flagger's authorization
View all reports from all Red Flaggers
Manage disputes and investigations
Full access to the governance section
Red Flagger
The Red Flagger is a user authorized by the Super Admin to create reports on products in the supply chain. Each Red Flagger has a dedicated wallet and their actions are tracked on-chain. Can only operate on products of companies for which they have authorization.
Permissions
Create reports on specific products
Attach documentary evidence via IPFS
Notarize flags on-chain with wallet signature
View own reports in the dashboard
Access the scanner to identify products to flag
Company (Flagged)
The company whose product has been flagged receives a notification in their dashboard. Can view report details but cannot remove or modify the flag. Can contact support to dispute a report.
Permissions
View flags on own products
Read report details
Contact support for disputes
View attached evidence (if public)
Public User
Any user, even without authentication, can verify product status in the public scanner. Red flags are visible to everyone with complete transparency, including report reasons and on-chain transaction links.
Permissions
View all flags in the public scanner
Verify evidence on-chain via explorer
Check complete report history
Access data via public APIs
Red Flag On-Chain Data
| Field | Description | Verifiability |
|---|---|---|
productTxHash | Hash of the flagged product transaction | Blockchain explorer |
reason | Report reason (descriptive text) | Visible in scanner |
flaggedBy | Red Flagger wallet address | Blockchain explorer |
timestamp | Flag creation date and time | On-chain timestamp |
ipfsHash | IPFS hash of attached evidence (if present) | IPFS gateway |
notarizationTx | Notarization transaction hash | Blockchain explorer |
Frequently Asked Questions
Only users with the "Red Flagger" role, appointed by the Super Admin, can create reports. It is not possible to self-assign this role. The Super Admin evaluates the user's competence and reliability before appointing them as Red Flagger. Each Red Flagger has a dedicated wallet registered on-chain.
No, red flags are immutable once recorded on-chain. This is a fundamental principle of the system: transparency cannot be compromised. However, a Super Admin can add a resolution note indicating that the issue has been resolved, without deleting the history of the original report.
Impartiality is guaranteed by three mechanisms: (1) Red Flaggers are appointed by the Super Admin after a verification process, (2) every report is recorded on-chain with the Red Flagger's identity, creating accountability, (3) the system is publicly verifiable, allowing anyone to check report consistency.
The company whose product has been flagged can continue to operate normally. The flag concerns the individual product, not the entire company. However, if systematic irregularities are found, the Super Admin may decide to suspend or revoke the company's DID identity.
Yes, red flags are fully accessible via the scanner's public APIs. The /api/public/scanner/product-details endpoint includes all active flags for a product, with reason, date, and report author. This allows external systems to integrate flag verification into their processes.
Verify Red Flags in the Scanner
Visit the public scanner to verify the status of any registered product. Red flags, evidence, and on-chain transaction links are accessible without authentication.