For a long time, the world was convinced that the blockchain technology works only with the cryptocurrency, for example, Bitcoin. There is no doubt in the fact that this flourishing tech is majorly used within the finance industry. Because of the virtual payment process.
But this does not mean that we cannot use this in a different industry. Actually, there is a huge scope to expand the use of this tech into various sectors. For example, it is also initiating the change in the supply chain system. These changes are directly going to affect a lot of businesses, in the coming years.
But do you know what is the best quality of this tech? Well, its ability to secure identities and enable authenticity. And these are the features that lead to its introduction in the fashion industry.
The Epic Saga Of Blockchain Technology
Blockchain is a decentralized, distributed ledger that is known to store the transactions in a sequence. Think of it as a database that shares information over a private or a public network. Bitcoin is the most popular example of a public network. A copy of the shared network is distributed amoung each and every user. This technique makes it impossible for any kind of malicious entity to use or modify the content of the system.
In this database, it is only possible to add any information. But any kind of modification is not possible. There is also no kind of governing authority, and the complete credit goes to its decentralized nature. The number of sectors that they are used in, are countless. Transaction records can provide detailed information about the owner of the value item. And if you are curious about the transfer of ownership, then you need to know that it happens through a new transaction.
This concept is already flourishing in the supply chain process. Here this tech is overcoming the problem of non-standardize and centralized systems by establishing a chain of transactions. For every physical or virtual good, there is an entire list of transaction that leads to the origin of the product.
Its Impact On The Fashion Industry
Take a close look at each and every major industry, from IT and Healthcare to E-commerce and Finance. Are you able to find any similarities? Let us dig a little deeper...
Every industry has its own set of challenges, and so does the fashion industry. Are you aware of them? Well, the biggest challenge faced by this industry is the wide spread use of inauthentic products. And there is no doubt in the fact that the market are flooded with such hoax goods. This reduces the quality of the item and also affects the profit of the colossal brands.
The second challenge is the timely delivery and shipment tracking, and that too with the right specifications. And now with the introduction of this technology, there is a potential solution for all the prevailing challenges.
This technology provides a way to protect the products against counterfeiting. This is because it is possible to track each product to its origin, which leads to tracking of the ownership to its source. Bogus products present in the market will have no solid or authentic chain of records.
The trend to apply blockchain technology in the fashion industry started in the year 2017. And it prevented the diversion of profits from the legitimate brands.
When we use this technology along with the internet of things, it is possible to track the source of the production factory to the final products. And in the end, deliver it to the retailers throughout the distributed network. It is possible to track the origin of each item.
The fashion industry can, therefore, figure out all the weak links, and work in a direction to solve them.
From the supply of raw material to the final shipment to the user, the supply chain industry is filled with a number of inefficiencies. Along with it suffers from the problem of mismanagement. This is where this tech comes in handy. It solves the problem by making the practices more transparent. And if suppliers try to alter any records, the complete system will be updated.
Last but not least...
Blockchain makes it simple to keep track of all the royalty payments. Designers can create an immutable proof of creation with this tech and can also use it to license designs. This eventually leads to authenticity.
The scope of development in the blockchain technology is unmatchable, all we need to do now is to look for the right opportunity.