How is Blockchain Technology bringing transparency to Fashion Industry?

How is Blockchain Technology bringing transparency to Fashion Industry?
Blockchain technology
Blockchain technology came into being as support for cryptocurrencies. Interestingly, this technology has evolved into a game-changing solution that has reshaped the functioning of diverse industrial domains and the fashion industry is no exception.
The Blockchain-infused approach was introduced into the fashion industry at the Shanghai Fashion Week, held in 2016. Here, the renowned apparel brand Babyghost, partnered with technology providers to create a Blockchain Apparel Technology that allowed all the stakeholders of the supply chain including customers, to validate the authenticity of the clothing manufactured by the brand. Small-sized chips and accessories were embedded within the clothing items so that one can scan and determine whether a specific garment was authentic.
Today, Blockchain has emerged as an effective solution that addresses myriad challenges encountered by the fashion industry and ushers in the much-needed transparency. Let’s explore its role in transforming the fashion industry!

Blockchain Technology in a Nutshell

Blockchain, a P2P (peer-to-peer) decentralized distributed ledger technology, guarantees that the records that are stored within cannot be destroyed or forged. The key objectives are to offer immutability, transparency, security of data, and evidence whether a specific data is safe and has not been altered. And, despite being known for its pivotal role in the origin of digital currencies, this technology is equally effective for non-crypto currency uses as well.

How does Blockchain Technology function?

Blockchain comprises a group of blocks that carry information. These blocks possess information concerning transactions like purchasing behavior, consumer profiles, the time and date of operations, etc. Each block consists of a unique set of data identifiable by a “HASH” code algorithm. Since it stores data sequentially, it can be considered as a database shared across a private/public network. A copy of this shared database is present with each authorized user. This arrangement prevents any malicious users from altering the database’s content. As this database/ledger is “append-only”, one can only add data but not carry out any modifications of the existing data. Therefore, the P2P network provided does not need the involvement of any regulating authority or intermediary. The transaction records stored on a Blockchain enable identifying the owner of a value item and via the ownership, subsequent transactions are transferred, creating a chain of ownerships/authenticity.

Fashion Industry Challenges

  • There’s been a rise in the number of forged products and this hampers the brand value of a renowned business.
  • Untimely delivery of products leads to loss of user advocacy and sours relationships with customers.
  • The consumers, manufacturers, retailers as well as suppliers of the modern era demand transparency in their products.
  • Today’s consumers need to be well versed in the history of products for validating their authenticity.
  • The “conscious customers” question a brand on the environmental footprint of garments, textiles, footwear, etc.

Blockchain in the Fashion Industry: Implementation and Benefits

Blockchain app development services
Check out how Blockchain resolves the numerous roadblocks encountered by the Fashion industry!
Bringing in Transparency within Supply Chains
Currently, most of the supply chains of the fashion industry lack transparency. This is because the supply chain for any fashion-related product involves several developmental stages that take place across a couple of countries around the globe. Therefore, fashion brands find it challenging to monitor the quality of raw materials that are used to manufacture their products. This roadblock can be effectively resolved by employing Blockchain technology. Blockchain’s NFC (Near-Field Communication) tags enable companies to track the entire product lifecycle and record the products’ journey globally.
As such, retailers are able to track the manufacturing process of apparel right from the consumption of raw materials to the creation of the end product which brings in complete transparency in the supply chain. Thanks to the transparency tracking methodologies, producers get useful insights into their value chain and can ensure the proper execution of processes such as handing off goods to third parties and labeling the end product.
Identifying the Authenticity of Goods
The Blockchain-empowered solutions are known for their distinct capability of creating a physical-digital link between the goods and their digital identities on a Blockchain. Usually, a serial number or a cryptographic seal plays the role of the physical identifier and links back to the “digital twin” of an individual product. This way, each time a product changes custody, the Blockchain records that change. For this reason, retailers can effortlessly identify counterfeit goods that miss the physical digital link as well as any attempt to divert goods in between. Moreover, the chain of custody on the Blockchain displays a record of the last party that has gained the products’ custodianship. As a result, it becomes obvious where the authentic product was diverted out and the counterfeit product was slipped in. This helps manufacturers protect their brands against counterfeiting.
The afore-mentioned process enables determining the authenticity and genuineness of a product for providing a digital authenticity certificate to every new product. For instance, Vacheron Constantin uses a Blockchain-backed validation mechanism for issuing a digital identification certificate to every new watch. Furthermore, each time a watch is serviced or transferred; this mechanism stores the records of the proceedings on a public ledger.
Improved Product Quality and Enhanced Efficiency
Blockchain integration enables brands to trace the weak links within their business operations. Hence, it’s easy to identify a production department that does not adhere to the defined quality standards or a supplier who provides defective materials. This enhances the efficiency of the manufacturing process and improves the overall quality of the end products.
Hassle-free Royalty Tracking
The Blockchain ecosystem facilitates seamless tracking of royalty payments. This is because it enables the designers to create unalterable evidence of the design created. It can also be utilized for building and tracking trademarks, license designs, royalty programs, and the sales generated through such design creations.
Transferring Ownership of Digital Apparel Securely
Digital clothing has garnered popularity in recent times as designers are providing consumers the option of purchasing digital apparel and the ability to digitally fit in it. Blockchain apparel technology enables transferring the ownership of digital clothing items. It also rules out the possibility of any issue concerning the stealing of product designs, thereby creating uniqueness and desirability.
Building Evidence of Use for Trademarks
Blockchain technology facilitates the creation of solid proofs of usage for trademarks. These trademarks save time and expenses for companies who have to undergo the hassles of renewing as well as securing a trademark when invalidity actions or disputes occur.
Optimizing Operational Costs
The Blockchain environment promises an effective supply chain, improves data management, and minimizes the risks of counterfeiting. It seamlessly integrates surfaces for reconciling data through operational as well as service lines. These advantages help in optimizing operational costs.

Blockchain Integration in the Fashion Industry: Tips on Execution

If your brand is facing challenges in proving your worker welfare standards to the industry or needs to authenticate the origin of raw materials/goods in the supply chain; it’s high time you should hire experienced Blockchain app development Company.
The first step is holding a discussion with Blockchain app developers on building a solution that would collect information from the right set of people. Next, instruct the developers to design a structure of information that will allow you to know the details of the raw materials/fabric/chemicals used. Once your objective is clear, go ahead and select the apt Blockchain platform that will suit your requirement as there are many of them with distinct functionalities. Thereafter, you need to begin with creating the frontend and UI of the application. Also, make sure that your Blockchain-powered app can be effortlessly used by all your stakeholders. In case of any assistance feel free to contact Biz4Solutions, an experienced Offshore software development Company in India offering Blockchain App development services.

Final Words

Today’s fashion industry demands transparency and sustainability. So, the fashion brands that are unable to meet this requirement will find it difficult to fulfill the needs of a highly competitive market. And, Blockchain integration is the one-stop solution to maintain the industry standards for your fashion brand.

Major Types of Blockchain Projects that are emerging to decentralize the economy!

Major Types of Blockchain Projects that are emerging to decentralize the economy!
Blockchain app development
The term- ‘Blockchain’ was first coined in 2008 by Satoshi Nakamoto- an individual, or a group of people- its identity is not known till date. Blockchain was actually invented for serving as the public transaction ledger for Bitcoin cryptocurrency. But today, Blockchain solutions are solving several complex challenges for multiple industries. Blockchain Projects range from improving capital markets to data sharing/securing to seamlessly performing international payments. In this blog, I will discuss with you different types of Blockchain projects existing in the decentralized economy, along with a few basics of Blockchain technology and some vital benefits of Blockchain app development. Let’s get started.

Basics of Blockchain Technology

Simply put, Blockchain refers to the technology in which chains of blocks are created for carrying important data securely. This technology enables to timestamp digital documents so that altering or backdating them isn’t possible. Also, it helps the Blockchain app developers resolve the double records problem without requiring a central server.
This technology is also called Distributed Ledger Technology (DLT). It uses decentralization and cryptographic hashing. It is based on three concepts: Blocks, Nodes, and Miners. Conceptual working of Blockchain is explained in the below steps:
  • Transaction is initiated
  • Blocks are created for the transaction using the mining process
  • Blocks are sent to every node on the network
  • Nodes validate the transaction
  • Nodes are awarded for proof of work
  • Existing Blockchain embraces this newly generated blocks
  • Finally, the transaction gets completed

Potential Advantages of Blockchain App Development

The forward-thinking solutions provided by Blockchain app development will be virtually impacting almost all the sectors within a few years. This underlying technology is here to stay for decades to come as it offers advantages like the below:
  • Open-source
  • Easy to use
  • High-speed Transactions
  • Decentralization and Immutability
  • Elevated Traceability and Transparency
  • Lesser Frauds, Security Threats and Risks, etc.
  • Auditability
  • Top-grade Security
  • Better Accessibility to Important Data
  • Automatic reconciliation of Accounts
  • Improved Efficiency
  • Higher Integrity
  • Reliability and Trustworthiness
With the increasing demand for Blockchain technology, businesses are trying to adopt it in various forms. Different types of blockchain projects are coming up to keep abreast with the trending technology.

Categories of Blockchain projects

Blockchain Projects
‘Fear of Missing Out’ (FOMO) Projects
The FOMO projects, as their names depict, are the ones initiated by companies to be seen as a competitive organization following the current trends and does not fall behind in the business world. These Blockchain Projects are usually led by single companies, either used for in-house applications or with a few limited partners. They are mostly used as a marketing act. These companies do not have the adept knowledge on how Blockchain can be best employed for varying projects. Though they might not create much value but they are not always useless. They represent the companies as modern and futuristic, so the chance of getting prospective customers increases.
However, the companies going with such projects must be aware of ‘FOMO backlash.’ It means that if the project is poorly planned and fails in the long term, the company’s reputation can be at stake.
Opportunistic Projects
These kinds of projects are usually meant to solve issues related to record-keeping or any known problems. These projects provide long-term benefits to the companies even when they are not operating for some time. But looking at the downside of these projects, the companies may lose control over contracts and data later.
One of the examples related to Opportunistic Projects is the creation of the Australian Securities Exchange for streamlining financial trading. Another example is the project developed by the Depository Trust and Clearing Corporation (DTCC) for regulating records from credit-default swaps is for the US financial system.
Trojan Horse Projects
In this category of projects, one significant player like a dominant supply-chain participant, or a small group, or a digital giant builds a Blockchain project and invites other ecosystem participants for employing it. They come with a strong technological foundation and are meant to address the common and wide-reaching issues in a certain industry. These projects look quite attractive and are backed by a brand. But such projects may require the users to share their sensitive info, their company’s data, etc., and thus, transfer the control which may result in consolidation of the market for the main owner of Blockchain.
A food-tracking Blockchain system is a good example of a Trojan Horse project. It takes lesser time and effort comparatively to decide the point at which the food items were replaced/adulterated, the person responsible for this, and its further prevention. It allows accessing of the records to the users in real-time. But the requirement is that participants need to share their personal details on the network. This can be at times risky for the participants as they become dependent on owner’s technology and bound by their contract terms.
Evolutionary Blockchain Projects
Blockchain projects in this archetype are developed in order to evolve over time so as to utilize tokens with decentralized governance. As compared to the trojan horse project category, the business currencies in evolutionary type projects can trade at a lower risk level comparatively for the participants.
There is an example for these type of projects that comes from UEFA – the central committee for European football. This committee works with two Swiss technology companies namely- TIXnGO and SecuTix for the development of an evolutionary blockchain platform that provides a safer and equitable market for selling football tickets. In this project, token is created for each ticket so that all the purchases, transfers of each ticket can be tracked along with owner details.
Blockchain Native Solutions
This too is another kind of project that business leaders focus upon. They are a preferred choice of several start-ups or innovated even by teams of existing firms for disrupting an existing business model or for developing new market opportunities. They may start with some different facilities and perspectives, but eventually, they are expected to move in the direction of decentralized governance and tokenization. However, these solutions come with huge currency risks. As a result, businesses that are ready to experiment and manage their own data, prefer Blockchain Native Solutions.
The gaming and Education industries have been working upon such projects. Enjin is an example of this project type in the gaming sector. In the education sector, Woolf University, also known as ‘decentralized Airbnb for degree courses’, is the best-cited example.

Concluding Views:

Blockchain technology has emerged as a new-age solution to address numerous business challenges that include data sharing and workflows. Blockchain solutions are not just limited to cryptocurrency today. They are applicable to several industries like the healthcare industry for sharing the data securely, in the transportation industry for real-time operations, in real estate processing, in the voting mechanism, for cross-border payments, for tax regulation and compliance, for food safety, and much more. So if you are thinking of building an impactful software application using Blockchain app development services, this blog would prove to be useful.
This is it for now. I hope this read was insightful.
What are your views on this technology? Which type of Blockchain project have you worked upon?
Do share with us in the comments section below.