by Ronan Schmidt
With the idea of virtual payments, a primary use for blockchain technology is within the banking business. It is also referred to as a distributed ledger technology.
In this technology, the payments made via blockchain make it safe and secure. It records the provenance of a digital asset. A bitcoin block contains information about the receiver and sender. The transactions made through the blockchain technology keeps the transactions safe and secure.
There are no third parties involved in it but only a sender and a receiver. On the other hand, it is true that bitcoin technology is affecting the fashion industry. Still, bitcoin is affecting many industries such as the fashion industry, and will continue to do so in the future.
This technology is now making major inroads into the luxury goods supply chain market. Blockchain establishes authenticity and digital identities and has far-reaching outcomes for the fashion and luxury industries.
What is Blockchain Technology?
Blockchain technology is a scattered ledger, decentralised, which stores transactions in a sequential manner. Actually, it is a database which is shared across the private and public network. You can also check the bitcoin era for more information.
The example of a public network is a bitcoin blockchain. It does not involve any governing authorities or intermediaries such as a government or bank. They don’t have any rights or authorities in the blockchain technology.
In this technology, data cannot be manipulated or controlled by a single party. It establishes a chain of transactions. The data can be corrupted, modified, or changed by the various parties involved in the system.
This blockchain technology is becoming popular all over the world and especially in the fashion industry. The cost of luxury goods is changing. The value of bitcoin is rising and falling with the passage of time.
Royalty Tracking
Blockchain can be used to track royalty sums. This technology allows artists to produce an inevitable proof of work and can be applied to authorise trademarks and designs. Sales and any power cash arising through the application of these ideas can be quickly discovered.
Reliable Supply Chain
Either it is the stock of raw elements or purchase to the point user, the supply chain management is still full of mismanagement and inefficiencies. It will make the transactions more transparent with the use of blockchain technology.
Origin Tracking
Using blockchain along with the IoT (Internet of Things) technology, raw elements can be drawn from their reference to the composition. It can be used for increasing the overall quantity of efficiency and products in the manufacturing process. The origin of each item can be tracked and rooted out at the source.
Intellectual Property Protection
Using blockchain technology, designers and manufacturers can save their trademarks against copying. Its ownership and origin can be tracked all the way up to its source for each fashion item.
Customers get precisely the results that they spent without any copying, and this approach will not only restrict the change of advantages away from certain brands. It guarantees the nature of goods and preserves the status of the concerned kind.
The concepts of this technology have already started being applied in the industry. From raw materials and finished products, each step in the manufacturing process was reported.
Relevance in the Fashion Industry
The fashion industry has its own set of challenges as with any industry. The biggest challenges in the fashion industry are the counterfeit products taking profits away from established brands and flooding the market. Blockchain carries the potential to solve major problems.
The Final Thoughts
Now you know how the blockchain technology is affecting the fashion industry and it is still transforming the shape of many industries. The technology is in its origin and will take some time to be patterned. However, there is a lack of technical awareness among business and customers. Therefore, this is all about the fashion trade and how it is related to blockchain.
Image by Aaron Olson from Pixabay
