Impact of Blockchain in Fashion Industry

Technology is having a significant impact on every field in this modern world and although
social media, internet and AI have made its mark, the technology has also redefied the economy
by the introduction of the Bitcoin, a digital currency. Bitcoin not being a currency controlled by a
nation-state but a cryptocurrency that is more democratized and transparent. Giving rise to an
underlined technology that holds the database called the Blockchain. So, the first time in history
around the globe people can work on a project and trust peer to peer transactions. Assets are not
centralized stored in a single place but instead distributed across a wide global ledger in the
highest level of cryptography which ensures its security. Businesses across the globe are swiftly
adopting the blockchain as they find it more transparent and efficient manner to the changing
advanced world and fashion industry also stepping in with the growing focus of millennials to
opt more sustainable and eco-friendly products, the fashion industry can benefit a lot from
blockchain technology towards its sustainable development. The blockchain can fairly relate to
the growing fashion industry in certain ways.
1. Shared access among all users where the whole supply chain is connected to the process
making it more accessible and less ambiguous.
2. Entries cannot be changed and exist indefinably which makes it the most reliable form of
transaction as the records of the transactions are impossible (or very hard) to remove
3. Updates occur instantaneously on the database because the transactions are traced within a few
seconds, it has been done.
4. Decentralized the major assets which create flow-through suppliers to the producers and
creates a transparent and efficient flow of value.
The blockchain has four main characteristics, reduce cost, reduce waste and increase
transparency. In terms of how it has affected the fashion industry and the potential it has for
sustainable development, there are few mentions.

Transparency in Supply chains:

The recent trends of the consumers being more skeptical of the supply chain or the process that
the product has gone through has made it harder for the companies to provide accurate
information to the consumers. The consumers with blockchain can keep track of the whole
supply chain and recent businesses like Patagonia and Everlane are including this in their
strategy to encourage transparency in the process. With blockchain becoming mainstream,
transparency could be one major benefit for the fashion industry as well.

Efficient Supply chains:

The fashion industry has long and inefficient supply chains that create sophistication in raw
materials. The inefficiency of the supply chains moreover increases the impurity because there is
a lack of transparency in the supply chain. The blockchain allows the industry to be more
involved in the supply and demand process on keeping an eye on every step of the process.
Moreover, the efficiency of it makes it also a best option as the transactions don’t involve
unnecessary delays. The traditional transactions taking a lot of unnecessary time could be more
efficiently transferred through the blockchain bringing a drastic change in the fashion industry
Protecting intellectual property/ Counterfeits:
The internet allowed individuals to share the things by democratizing the property, but it also
extended it to the Assets, like money, intellectual property, Art visual and audio. The intellectual
property in terms of fashion could the supply of replicas and other counterfeits that makes it very
hard for the brands to keep track of their products, while their products’ reputation is tainted by
the counterfeits, with blockchain the tracking of all the supply chain of the replicas could be
tracked and rooted out making it more reliable in terms of protecting the intellectual property.

Reducing Inequalities:
The major problem with the fashion industry is the supply chain that is heavily centralized with
the cuts for wholesalers, an average farmer producing cotton works all day long and in turn
barely profiting from the product. With blockchain transparency, the cuts for the major
stakeholders could be seen and also pressured into providing the appropriate compensations for
their work. This could result in the farmers having more profits and inequality in the supply
chain reduced to the minimum and making the fashion industry more sustainable.

Adopting Sustainable Methods:

Sustainable methods referred to as the process that is economically viable, socially inclusive and
environment-friendly. The manufacturing process of the fashion product requires a massive
supply of cotton, chemicals, and water that makes it a little questionable on the sustainability
front. It can also help access the carbon footprint to the easiest and the most efficient manner by
keeping our customers feel the responsibility of the things they are buying and the eco-
friendliness of it. The products being used could be traced to their carbon footprint, assessing
their sustainability, and in case of falling short, help increase the standards.

Promoting Sustainable Business Projects:

Luxury brand products are having a vast market but it is not regulated and the Majority of the
textiles are in first-time use. A significant portion of it we throw away just because of a lack of
infrastructure of recycling. The blockchain has the potential to promote the infrastructure that
can support the businesses that use sustainable methods like reselling of the luxury products and
also the effective use of excess cotton cloth in making useful products. An action as simple as
reusing a single shirt will save a lot of water used for its production and these ideas might catch
some wind as the growing interest of the young generation in preservation efforts.
Blockchain concept has already been applied to the supply chains around the world with an
efficient way of minimizing the previously vast gap between the manufacturer and supplier. This
method is also meant to promote more sustainable fashion industry in terms of equality and
considerable profits sharing across all stages from agriculture, production to consumption with
data that leaves fewer chances of it being used for counterfeit purposes. Blockchain has the
power that the modern world lacks, to track an accurate carbon footprint in the production
process and help support sustainability. The blockchain technology requires a technological
awareness and infrastructure that promotes the cryptocurrency which has limited it spread to
mainstream business but the growing trend is more likely to mainstream the technology as it has
more benefits for the industry, let alone the fashion industry.