Blockchain Technology: A New Trend in the Fashion Industry
According to a report by PwC, there are many emerging technologies such as Augmented Reality, Blockchain, Internet of Things, and Robotics that are disrupting today’s business world. Out of the above-mentioned technologies, Blockchain technology is one such technology that many fashion insiders are trying to understand and integrate into their business processes.
Understanding the background
Blockchain is a decentralized digital ledger that stores its transaction sequentially on the ledger that is accessible to all the stakeholders of that transaction. This ledger is appended only; making it possible only to add information and not edit or delete it. Owing to the decentralized nature of Blockchain, the peer-to-peer network allows the removal of any third parties such as a bank or government.
This concept of Blockchain technology is being applied to supply chains all over the world. The traditional supply chains are centralized making the data sharing between stakeholders minimum and hassle-free. Blockchain overcomes this problem by establishing a chain of transactions that contains all the information of the transactions right from the origin of an item.
Relevance in the Fashion Industry
The fashion industry comes with its own set of challenges. One of the biggest challenges of the fashion industry is regarding counterfeit products that compromise the quality of items, thus damaging the brand’s reputation. Similarly, there are various other challenges that Blockchain technology helps to tackle in the fashion industry.
Some of the use-cases of Blockchain technology in the fashion industry are as follows:
1. Intellectual rights
Leveraging the Blockchain technology, manufacturers and designers would be able to protect their brands against replicas and counterfeiting. Using the Blockchain technology, each fashion item can be traced to its source.
This application of Blockchain technology would not only prevent the diversification of the profits away from the original brands due to duplicate products but would also make sure that consumers receive the original products they have paid for.
2. Tracking the origin
Integrating Blockchain with the Internet of Things technology such as RFID, raw materials can be easily traced from their origin to the production factory. The origin of each item can be tracked, and all the duplicate materials can be rooted at the source.
This is also useful in increasing the quality of the original brand. With Blockchain technology, fashion brands can easily identify the weak links in the operation and boost their performance easily.
3. Efficient Supply chain
Whether it is the supply of raw materials or the shipment of the final product to the consumers, the supply chain has many drawbacks and inefficiencies in the management. The use of Blockchain technology in the fashion industry would make the supply chain more transparent. One of the added advantages of Blockchain technology is that the records are immutable, thus the transaction of the supply chains is verified.
4. Royalty tracking
Royalty tracking also becomes easy with Blockchain technology. With Blockchain technology, designers can not only create an unalterable proof of creation but also track the licensed designs and trademarks.
The supply chains that are powered with Blockchain technology can easily transform the shape of the fashion industry in the years to come. With the growing technical awareness, Blockchain technology can be easily adopted in various industries, the fashion industry being one of them.
Want to know more about Blockchain-based supply chain solutions? Debut Infotech is the answer to all your questions.
Debut Infotech is a reputed Blockchain app development organization. We have the best team of efficient developers and quality analysts that work diligently to cultivate the best Blockchain solutions.