Blockchain and Its Application In the Fashion Industry
You probably have heard about the blockchain technology in the context of the financial domain. Cryptocurrencies such as Bitcoin and other digital coins are based on the blockchain technology. There is no doubt that blockchain has found its major application in the financial technology discipline, but with the passage of time, the decentralized ledger is also finding favor with many other industries. Some of the prominent examples include supply chain, logistics, automobile, and energy sector, among others.
Blockchain in Fashion Industry
Recently, we have also witnessed increased interest of the fashion industry in blockchain technology. The application of blockchain can prove instrumental in benefiting the fashion industry in more than one way. The primary way is the help that blockchain technology can provide to the second-hand garment market. By providing a digital, blockchain-based identity to the garment products, one can easily track counterfeit products in the market. With the help of blockchain technology, one can easily identify the difference between real and fake products by tracking the digital identification of the products.
The second prominent area where blockchain can prove to be immensely beneficial is the supply chain of the garment industry. There is a lack of data transparency when it comes to the logistics and supply chain in the fashion industry. Most of the time, big fashion brands are not completely aware of the place of sourcing of their raw material. This is especially a big concern when the outsourcing of the material is done by a third-party. However, the application of blockchain technology can easily solve this issue by providing a verifiable and true account of the value chain through which raw material gets converted into final clothing.
The issue of environmental sustainability can also be solved within the fashion industry with the help of blockchain. Blockchain can easily tell how much resources have been consumed during the production of the product. It can also empower the customer by providing him/her complete details of the product’s journey. Brands can also utilize this information in their favor by using sustainable technologies in the production of their products. The application of the blockchain in the fashion industry could possibly result in a QR label on the product, and by scanning this code, one can get all the information not only related to the product but also the journey it has made from raw material to being converted into the finished product.
The application of the blockchain in the fashion industry is still in the infancy stage. The need of the hour is to have more use cases that can help organizations in the fashion industry to embrace this open ledger technology in a significant manner. There are a lot of advantages associated with the use of blockchain in fashion, and without a doubt, every stakeholder can be benefited from its adoption.
It is also important to develop a comprehensive understanding of blockchain technology among the key stakeholders in the fashion industry ecosystem. Only when collectively, the industry realizes the importance of blockchain and its positive impact on the supply chain, logistics, sustainability, and more importantly, on the customer perception, the need to take steps towards the adoption of blockchain can be converted into real demand. Policymakers can also help in this regard by offering favorable conditions to both the blockchain and fashion industry so that these can join forces to bring desirable changes in business efficiency and allied processes.