Benefits of Blockchain Technology in Fashion World

Benefits of Blockchain Technology in Fashion World

The fashion industry is generally the last one when it comes to applying the latest technology. However, recently after the introduction of blockchain technology in fashion has made it a profitable business. With more and more businesses enrolling online, luxury brands of clothes, bags, shoes have found their audience. The implication of blockchain technology in fashion can bring efficiency and accounting details to every customer. It will boost the digital experience of both the customer and brands.

Blockchain technology takes the internet to the next level, creating a truly decentralized, global network of computers that process and verify transactions mathematically, with no human intervention.

The collection of computers in the network are called nodes. Each node has a database or ledger, of all transactions completed on the blockchain, with the updates in near-real-time. Every node must agree that a transaction is valid before it is then immutably stored on the blockchain.

Immutability refers to the inability to adjust or remove any information about the transactions. Once a transaction is appended to the blockchain, it may as well be written in stone.

Another key advantage of blockchain is the transparency of open-source technology. Blockchains can either be public or private. The transactions on public blockchains can be viewed by anyone with the internet, using a block explorer website such as etherscan.io

Transactions are cryptographically hashed so you can not view personal information, however, you can see the amount of money moved, when, and the addresses where it’s moving from and to. 

With private blockchains, transactions are unavailable to the public to view to maintain a certain level of confidentiality. Only those with the corresponding private keys can view the blockchain transaction history. Fashion companies using blockchain has become a common hit. 

 

How blockchain will benefit the fashion industry?

Monitoring Deliveries

Once you place your order, the wait for its arrival is difficult. You constantly keep thinking of the expected dates of receiving the parcel. With blockchain technology, there is no more stressing about the surprise arrival of your order. This technology provides you transparent tracking route from packaging to the end of receiving the product. Many e-commerce platforms have made it incredibly easy to get packages in no time. But there can be few cases of delayed deliveries. To combat that, we can use blockchain technology to keep a check on each stop of the order. It completely takes away the hiccup of stealing or losing your package. 

Reducing Counterfeit Items

With the application of blockchain in fashion retail, counterfeiting is next to impossible. Items that are registered on the blockchain will be next-to-impossible to counterfeit. There is the argument that a counterfeit item could be registered on the blockchain in the beginning or during the supply-chain process. However, most consumers don’t worry about high-end brands shipping counterfeit items from their warehouses, and soon items that do not have a QR code will probably be deemed as fake. 

If a genuine item was switched out for a fake partway through the distribution process, it will be clear from the blockchain records when the event took place, and easy to locate where the fake items are coming from.

Supply chain management

supply chain management is a key necessity for both small and large companies. Businesses can have access to data from what they buy to what they sell. The authenticity of the material, to factories, to distributors, sellers, and end customers everything can be done under the invigilance of the brand. Global fashion giant Burberry approached IBM interns earlier this year, to develop a prototype blockchain-based protocol, that would allow Burberry customers to register their garments, alongside viewing the history and information about the environmental and human impact of the item.

fashion supply chain processes

IBM worked for almost three months to develop this protocol. This protocol is called ‘voyage’ and currently under use by the Burberry app. Customers can view the source of the cloth material and other information regarding the brand products. Customers are also provided to register for the garments they want to buy later with a serial number. Making it an example of blockchain sustainable fashion. 

Warranties and coupons

Having open-source electronic records of when goods were purchased, makes it easier for both consumers and manufacturers to maintain records of product warranties, guarantees, and verifiable records of when the warranties are used.

No more needing to hang on to receipts for your fridge or washing machine for years on, you’ll soon be able to log on to an account and view the same information around your purchase as the retailer and manufacturer. Thanks to the use of blockchain technology, brands and retailers can now offer their customers digital coupons on the blockchain. The digitalization of promotional offers means brands can reach a larger audience on a vastly wider scale, in a much more cost and time-efficient way. 

Royalty Tracking

Blockchain also makes it easy to track royalty payments. Not only can blockchain allow designers to create an unalterable proof of creation, but it can also be used to license designs and trademarks, and any royalty payments and sales originating through the use of these designs can be easily traced.

Data control

Besides tracking physical goods on blockchain technology in fashion, consumers can now see when and how their data is being used. When consumer data is entered onto the blockchain, customers can stay In control of where and to who they give data.

This comes as big businesses such as Facebook and Google face increasing regulatory pressure around how consumer data is obtained and how it is used and sold. Consumers are often unaware of what happens with their data when it is given over to such companies, which can often leave people vulnerable to cyber attacks and identity theft. 

Frequently Asked Questions FAQs

  1. What is blockchain technology in fashion?

Ans: The blockchain allows the ownership of data, intellectual property, and physical property, to be trustless and mathematically verifiable. In 2017, Martine Jarlgaard, a designer from London, produced the first garments with ‘smart labels’ often in the form of QR codes, that could be tracked and recorded in the system. This technology will improve a lot of loopholes in the fashion industry. Monitoring the deliveries and managing them from end to end is an added benefit. Satoshi Studios, based in Paris, sells high-quality and stylish sneakers in a choice of colors that can be registered on the blockchain using the QR code attached to the tongue of the trainer. By scanning the QR code you can view the materials used, the origin, and suppliers throughout the manufacturing process. 

2. How can I get blockchain for free?

Ans: 5 Free Courses to Learn Blockchain Technology for free. 

  1. Blockchain Fundamentals. This is an awesome course on blockchain fundamentals and smart contract development from Pluralsight. 
  2. Blockchain Theory 101.
  3. Blockchain — Principles and Practices.
  4. Ethereum for Beginners: Build a Hello World Blockchain App.

 

3. What is the best blockchain company?

Ans: Top Blockchain Companies

  • Gemini.
  • Circle.
  • Coinbase.
  • Chronicled.
  • IBM.
  • Voatz.
  • Steem.
  • Shipchain.

  1. Does blockchain require coding?

Ans: Yes but not definitely. The skill of building the data structure from scratch is also essential for the blockchain developer. Knowledge of programming languages like C++, C-Sharp, C, Scala, Java, Python is also required. An individual can learn all the necessary knowledge about algorithms and data structures from the repository on GitHub. Furthermore, all such systems have to be designed from the outset to be consistent. There is no “move fast and break things” in blockchain technology. That would be easy enough to do in a centralized system, but this is very difficult in a decentralized one.

  1. What are the major components of Blockchain?

Ans: A technology is built on several factors. To have a strong base, there are many components that add up to The four major components of any blockchain ecosystem are as follows:

  • a node application.
  • a shared ledger.
  • a consensus algorithm.
  • a virtual machine. 

  1. How to Invest in Blockchain?

Ans: Ways to invest in blockchain

Besides investing directly in stocks of companies that are making use of blockchain, there are other ways to get in on the action. 

  • Directly purchase cryptocurrencies such as Bitcoin or Ethereum, or buy shares of a cryptocurrency trust like Grayscale Bitcoin Trust (OTC:GBTC).
  • Buy an exchange-traded fund (ETF) that specifically invests in shares of companies with exposure to blockchain. Two notable examples are Amplify Transformational Data Sharing ETF (NYSEMKT:BLOK) and Reality Shares Nasdaq NextGen Economy ETF (NASDAQ:BLCN).
  • Participate in crowdfunding a new cryptocurrency through an initial coin offering (ICO) — purchasing a new cryptocurrency issued by a developer working on a new blockchain project.

Conclusion

Blockchain technology in fashion can foreseeably transform the shape of many businesses in the years to come. The reason this technology hasn’t been widely adopted yet is a lack of technical awareness among consumers and businesses alike. Secondly, there are very few established standards that define how a blockchain network should be implemented. Blockchain traceability fashion is still in its infancy, and it will take a few years at the very least to be standardized and become mainstream.

Also Read: Blockchain in education: a positive impact

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