How Blockchain Technology is Transforming the Fashion Industry?

The breach-proof record-keeping technology is being used for bringing transparency in the fashion industry supply chains, tracking the welfare of factory workers, and transferring the ownership of digital fashion, among a plethora of other areas which are the industry’s constant irrespective of what is in trend.

Blockchain, like the apparel industry, has evolved massively ever since it was ideated. Introduced in the fashion world for the first time in the Shanghai Fashion Week 2016, the technology has today expanded its use cases in the direction of making the sector highly efficient and transparent.

Let’s dive deep into the details of what the combination of Blockchain and fashion can lead to.

Here are a Few Ways in Which Blockchain Clothing is Reshaping the Fashion Industry

Solves issues surrounding counterfeiting

According to the Global Brand Counterfeiting Report 2018, the estimates of offline and online counterfeiting of textiles, cosmetics, clothing, and footwear have reached a $98 Billion mark.

Blockchain, by being spread throughout the supply chain, helps customers obtain information about the product origin and the journey it has taken through the help of an embedded chip. This helps the customers with the necessary information required to reject counterfeit products or the ones that come from ethically questionable production units.

The concept was first tested by Martine Jarlgaard in 2017 who produced the first garments having smart labels on Blockchain software development. Every step of the manufacturing process was recorded in the label for the owners and the brands to authenticate.

Supports sustainability practices

The potential of Blockchain in fashion retail comes with the capability to track physical or digital products throughout the lifecycle. This transparency in the supply chain tracking process offers producers insights into their value chain, giving them the guarantee of a proper third-party goods handoff and final product labeling.

Blockchain development companies, by tracking the assets’ progression, come with the potential to expand ethical and sustainable creation and consumption of a commodity on a global scale.

Improves efficiency in the apparel industry

At present, the number of stakeholders involved in a production and distribution line = the number of individual records. Blockchain in fashion industry, however, brings the entire supply chain on a centralized digital platform. This saves the weeks it would take to identify the material origin and supply line.

Another benefit that is highlighted in bold in every Blockchain for entrepreneur guide is how nobody can lose, alter or, destroy a record once it has been added in the Blockchain.

Convenient royalty tracking

Blockchain technology makes it convenient to track royalty payments. It doesn’t just allow the designers to develop an unchangeable proof of creation but it can also be used for creating and tracking trademarks, license designs in addition to royalty programs or sales originating through these designs.

The convenience is what makes Blockchain not just a key part of the changing fashion industry but also a prime technology and trends of the media and entertainment industry.

Reduction of operating costs

By the three-fold benefits of better data management, transforming supply chain, and lowered risk of counterfeiting, Blockchain technology offers a way to lower down the operational costs. It provides an easy to integrate surface for data reconciliation across the operations and service lines.

Transfer the ownership of digital clothing

Digital clothing is becoming increasingly popular. Designers are giving their customers the option to buy digital garments with the option to be digitally fitted in it. A trend initiated by CryptoKitties, the procurement of digital goods have today become one of the key interest areas of making money from Dapps.

The ownership of the digital garment gets transferred through Blockchain technology, which in turn makes it impossible to counterfeit the design. "Blockchain allows us to create digital one-offs," says Kerry Murphy, the founder of The Fabricant. "It’s a way to create uniqueness and desirability."

What is the Promise of Blockchain to the Fashion Industry?

Think of the ease of tracking a garment right to the material for which it was made from, its purchase history on a website or, in-store. Imagine scanning a tag on a jacket or shirt and reading its origin story. Imagine a time where traceability and transparency are designed in apparel production and distribution, sustainability can be proven, and the customers can choose what to buy with the utmost confidence.

Read more: https://appinventiv.com/blog/blockchain-in-fashion-industry/

I am James Smith, an active blogger with over eight years of experience in the industry, and over that time, have built specialist experience in Technology Content Writing.