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Fashion industry & blockchain: sustainability & progress

Fashion industry & blockchain: sustainability & progress
The present business model of the fashion industry is linear; it consists of the three phases of taking raw material, producing, and discarding. In an increasingly eco-conscious world, since millions of tons of textiles are currently being dumped into landfills, this paradigm cannot be maintained indefinitely.
With more people than ever making purchasing decisions based on sustainability, the fashion industry will need to adapt with the times. Efficiency and transparency will be paramount, and technology is the best way to achieve this. And this is where blockchain comes in.
Blockchain was originally devised to act as an immutable virtual ledger for Bitcoin financial transactions in 2008. However, the technology, which allows data to be shared transparently but not modified retrospectively, has evolved far what was originally envisaged by the cryptocurrency producers. Here’s how it will change the fashion industry.

Blockchain to channel ultimate consumer-manufacturer transparency

To combat counterfeiting, show their environmental and ethical values, and stand out in a crowded market, digital provenance through the blockchain has arisen as a useful tool for the apparel industry.
By assigning each product its own digital identity, or "digital twin," the entire product's life cycle may be tracked on the immutable blockchain, from initial production to subsequent sales and recycling, as desired by the brand. Shoppers can quickly discover the origins of a product, including the silk or cotton used to make it, the designer, the factory, and the people who own the company. .
The Everledger Platform utilises blockchain technology, in addition to Near-Field Communication (NFC) as well as the Internet of Things (IoT), to instill and maintain trust of consumers in the authenticity of branded garments and luxury items.
Secure data storage and user access are both made possible by the private blockchain.

Blockchain will drive change in fast fashion?

Data from the supply chain is not always readily available, reliable, or even visible. Because of this crucial omission, sustainability plans always fall short. Tracing supplies back to individual suppliers or manufacturing facilities back to specific facilities makes sense for the fashion industry since it provides data that was previously unavailable.
Here’s how blockchain will aid in the development of rapid fashion:
  • Its use in monetary operations can improve supply chain management by developing brand-supplier partnerships on mutual information access and automated smart contracts.
  • Supply chain blockchain improves data accountability and reliability.
  • Blockchain might provide a permanent, irreversible, and searchable record of ecological footprint at every stage of the supply chain to all value chain participants and customers to achieve true environmental sustainability.
  • Blockchain solutions let fashion firms trace their items from raw ingredients to the finished product, assuming trustworthy data is entered at the source.

Final thoughts

There is little doubt of the potential of blockchain to revolutionise the fashion industry. In effect, the tech allows a story to be told about each item that cannot be changed.
Customers may buy, collect, and resell products with the assurance that they the genuine article, made by workers who are well treated and remunerated because of the transparency provided by blockchain technology.
For manufacturers, it also has a unique ability to solve problems in the supply chain. Any issues  can quickly be identified and eliminated or mitigated. Cost savings can also be found, and efficiency maximised.
To get the most out of the technology, businesses will need to ensure adequate ground work is done in advance of adoption.These include things like agreeing a set of standard operating procedures, creating a suitable model of organisational leadership and making the necessary legal agreements. In addition, traditional fashion businesses need to recognise the importance of collaboration in order to achieve the full value of blockchain and produce fruitful results.
Blockchain, a tech built on cryptocurrency, can help fashion businesses to take control of their financial futures – Click here to find out how you could do the same.
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