Blockchain is a decentralised ledger technology used to track transactions (changes) in a transparent and secure way. Despite being around since 2009, blockchain is still considered an infant but its potential is already being seen across countless industries, including the fashion industry. In particular, it’s tackling significant issues like counterfeiting and fraud. Below, we explore five ways blockchain has changed the fashion industry.
Supply Chain Transparency
The fashion industry is worth trillions of dollars, and people pay good money for the clothes they wear. However, where there’s money, there are criminals looking to profit. One of the ways they tarnish the system is with counterfeit products that are often made to a high standard; people pay high prices to discover they’ve been cheated out of their hard-earned cash.
Blockchain is helping to reduce counterfeiting through NFT (non-fungible token) technology. By placing barcodes on materials and products, they can be scanned at each checkpoint along the supply chain. When they reach the destination, the secure log can be verified to ensure legitimacy.
Alternative Payment Options
Cryptocurrencies like Bitcoin are built over blockchain networks, and they’ve become an important and heavily traded asset. However, crypto holders are looking for ways to spend their currencies without having to trade them on exchanges. Luckily, there are a number of stores that allow such customers to buy premium watches and fine jewellery with Bitcoin & Crypto. This is beneficial to buyers because it protects their identity while allowing them to move large quantities of money in a secure environment.
NFT fashion is a new and emerging market coinciding with the explosive interest in the Metaverse, where people can buy to own digital items in an immersive universe. Fashion giants have realised how much interest there is, which is why the likes of Nike now create digital exclusives as well as digital trials of future clothing lines. Not only does NFT fashion present new opportunities for businesses, but the market is more inclusive because anyone with internet access and a digital wallet can get involved.
Here are a few examples of NFT fashion brands and projects making waves within the industry:
- RTFKT. A digital fashion company focusing on NFT sneakers, which has collaborations with prominent brands like Atari and Nike.
- The Fabricant. A digital fashion house creating and selling virtual clothes, which feature collaborations from the likes of Miley Cyrus and Rihanna.
- DressX. A digital fashion marketplace, where users can purchase and sell virtual clothes. High-end designer collaborations include Burberry and Balenciaga.
Society has become much more invested in sustainability over recent years, and it’s a significant issue within the fashion industry because it’s one of the most pollutive. Blockchain technology has the potential to make the entire industry more sustainable by tracking raw materials and their impact on the environment.
Blockchain is making positive changes within the fashion industry, from reducing counterfeiting to promoting sustainability. As the technology continues development, we can expect to see more disruptive and innovative applications within the fashion industry and beyond.