How Blockchain Can Make Fashion Industry Transparent
Initiated in 2008 and applied in 2009, blockchain refers to the term that falls from the lips of people who still misunderstand it. For people who are not yet intimate with the word, the first thing they need to do is understand the primary technology behind this buzzword.
Blockchain is a type of distributed ledger, incorporated by digitally recorded and unchangeable data packages known as blocks. These blocks of data that are digitally recorded are stored within a linear chain. Every block within the chain holds data (Bitcoin transaction). Moreover, they are cryptographically hashed. These blocks of data come after the previous block in the chain, making sure that all information within the overall blockchain does not tamper and remains unaltered.
Blockchain is intended to revolutionize the globe. Blockchain is a distributed, truly open, global platform that is likely to fundamentally change what we can get online, how we can achieve it, and who can participate. With that being stated, it can be said that the first generation of digital transformation came with the internet of things. However, the second generation, backed up by blockchain technology, is likely to bring us the internet of value. Owing to its transparency, distributability, and immutable technology, blockchain can be utilized in the fashion industry to help with industry supply chains. Read on to know more.
Blockchain and the fashion industry
Blockchain, a record-keeping, breach-proof technology, is being utilized for bringing transparency within the fashion industry supply chains. It helps transfer the ownership of digital fashion and track the welfare of factory workers among a plethora of other regions which are the constants of the industry irrespective of what remains in Trend.
Similar to the apparel industry, blockchain has developed massively since its ideation. Introduced to the fashion world for the first time during the Shanghai Fashion week 2016, blockchain technology now has expanded its applications within the direction of turning the sector to be highly transparent and efficient.
Blockchain’s promise to the fashion industry
Think how effortless it would be if you can track a garment right to the material from which it was made. Tracking down its purchase history in-store, or on a website would also be beneficial. Imagine scanning a shirt, jacket, or t-shirt tag, and knowing about its origin story. Think about the time where transparency and traceability are designed in apparel distribution and production; customers can pick anything to buy with the utmost confidence and sustainability can be proven.
Bringing these imaginations into reality is the promise offered by blockchain. Limited edition and authenticity is necessary for the fashion industry. Similarly, being the first to discover where something is necessary. Moreover, it is impossible to prove the authenticity of something digital without blockchain.
How is blockchain changing the fashion industry?
With blockchain’s promise to the fashion industry, let’s set the ball rolling by taking a glance into the fact of how blockchain can be helpful to the fashion business.
- Solving issues surrounding counterfeiting
According to reports, the estimates of online and offline counterfeiting of clothing, textiles, footwear, and cosmetics have reached a $98 billion mark.
By being spread within the supply chain, blockchain helps clients obtain data regarding their product journey and origin it has taken through. It does that with the help of an embedded chip. It assists the consumers with the required data needed to reject counterfeit goods or the ones that arrive from unethical or ethically questionable units of production.
It was a concept that was initially tested by Martin Jarlgaard during 2017. In that case, governments containing smart levels on blockchain were produced. Each step within the manufacturing process was listed in the label concerning the brands and the owners to authenticate.
2. Backing up sustainability practices
Blockchain technology’s potential comes with the ability to trace digital or physical products throughout its life cycle. Such transparency within the supply chain tracking method comes with producers’ insights within their value chain, providing them with the warranty of the final product labeling and accurate third party goods handoff.
Blockchain development organizations, by tracing the assets’ path or progression, offer the potential to expand sustainable and ethical consumption and creation of a commodity on a worldwide scale.
3. Enhance the apparel industry’s efficiency
Presently, the number of stakeholders involved in the distribution and product line is equal to the number of particular records. However, blockchain is capable of bringing the whole supply chain on a centralized digital platform. It leads to saving the weeks it would require to identify the supply line and material origin.
Another advantage is — no one can alter, destroy, or lose the record once it has been added to the blockchain network.
4. Reducing operation costs
Along with the three-fold advantages of lowering the risk of counterfeiting, transforming the supply chain, and better data management, there are other advantages as well. Blockchain technology comes with the benefits of lowering down operational costs. It comes with an easy to integrate interface for the reconciliation of data across the service lines and operations.
5. Easy royalty tracking
With blockchain technology, it is convenient to trace royalty payments. It does not just enable the designers to develop an unchangeable proof of work. Still, it additionally can also be used for tracking in creating trademarks, sales royalty programs, license designs originating through these designs.
This is something that makes blockchain technology not only a key part of the transforming fashion industry but additionally an excellent solution and technology with the trends of the entertainment and media industry.
6. Transfer of ownership of digital clothing
With the passing days, digital clothing is turning out to be increasingly popular. Fashion designers are providing their clients with the option to purchase digital garments with alternatives to be digitally suited according to their choices. It is one such Trend by the procurement of digital goods has now turned out to be the main interest areas of making money.
In this case, the digital garment’s ownership gets transferred with the help of blockchain technology, which, in turn, makes the design impossible to counterfeit by anyone. Blockchain allows the creation of digital one-offs. It is the process to create desirability and uniqueness.
How to get started with blockchain in the fashion industry?
Fashion brands are regularly struggling to prove their worker welfare to the fashion industry, and experts are working on the same. They are additionally looking for integrating the source of the resale luxury goods. While this is a concept of one particular idea of a project, there are some of the many challenges within the fashion industry that the sector faces and looks for blockchain development solutions for the same.
If you own such a business that demands combining blockchain and fashion to make the entire domain more effective, it is recommended to get in touch with a blockchain development firm about product designing that would gather information and insight from the right people. If you are looking forward to investing in a blockchain application development process, that allows you to understand the fabric details and raw materials. It includes the chemicals utilized, make sure to reach out to your developers for creating a structure of the data on how they will make it accessible.
After you have understood the developers’ perspective and identified your needs and goals, the next thing you would need to do is decide the level of trust you want to work in. While cryptocurrencies and Bitcoin have popularized the idea of a trustless and immutable method, it is not the only possibility to consider when you plan the algorithms. Therefore, your next step would be choosing a suitable black chain platform. Multiple platforms come with their multiple unique characteristics. After you choose a particular platform and get through with this, your stage will lead you to the app front end and user interface ensuring that it remains easy to be utilized among the range of customers and stakeholders.
Wrapping up
At the back of its immutable and trustless operating system, blockchain technology enables the consumers to take a glance at and get through the complexity that is required to bring goods or products to the market. It does not only assist with transforming their idea of value but additionally lowers the huge quantity of goods thrown out in a year of usage.
When combined accurately by blockchain application developers, it can assist the fashion industry to not only validate their intention to concentrate on quality and sustainability but additionally maintain the revenues and margins to maintain them afloat, no matter how frequently the fashion trend transforms. It can help bring digital experience to customers and allow them to build up a personal connection with the products they own.
