As is the case with every industry in any economy, there lies a variety of problems that face every participant in that industry. The global fashion industry is glamorous and full of bling that can look easily lucrative to anyone, but similarly has the problems that are felt by every participant on the fashion value chain. From the authenticity of designs to royalties, there are tons of loopholes and points which can keep the designer from getting its fair share. It is at this point that people have started believing in blockchain and cryptocurrency to be the solution to such problems. The two play a dual role of protecting and rewarding participants in the industry.
Blockchain, the identity protector.
As established, the fashion industry also faces its challenges with a measure of them being forged and pirated products flooding the market and taking away profits from established and willful brands. The other problem that continues to face brands in the fashion industry is that the quality of the items is significantly compromised. This has the resultant effect of damaging and decreasing the goodwill and reputation of the brans. When all attempts to prevent both the problems have been breached several times, the advent and prospects of blockchain technology appear to harbor the potential to solve a majority of these problems. Below are explained a few use cases that fashion brands are testing blockchain for.
Intellectual property protection.
By employing blockchain use the designer, the cloth manufacturers, and other participants of the industry can protect their brands against counterfeits and forges. Each fashion item and its original ownership would be easy to track up to its original source. Counterfeit and forged products or their cheaper replicas, will not have authentic records and as such, can be easily rooted out.
Tracking of origin.
Using the blockchain technology along with the internet of things (IoT) and other technologies such as RFID, the authenticity of raw materials can be tracked from their source all the way to the finished products they produce. Every step of the value chain and its distribution networks will be accounted for. With this tracking, counterfeiting and forging can be easily eliminated out at the source itself.
Creation of reliable supply chain.
The secure supply of raw materials or shipments to the end-user through the supply chain industry is still ridden with inefficiencies and mismanagement. These can be easily eliminated by employing the use of blockchain and cryptocurrency technologies. A number of projects and startups have already started to embrace the use of blockchain technology and cryptocurrencies in the fashion industry. A particular startup by the name of Banafi, previously known as Group Project in Los Angeles, primarily focuses on tackling the counterfeiting issues in the fashion industry by checking the authenticity of luxury goods on a blockchain.
This is the same approach, basically, like that of Provenance but the Group’s solution takes into consideration a patent and trademark pending “crypto-Tag” chip, which communicates with smartphones through their propriety mobile app.
Cryptocurrency the rewarder.
The prospects of e-commerce style discovery and curation are slowly starting to gain traction and become a big market. The fashion industry today relies heavily upon a constant renewal of ideas. Because of these alterations, designers have grown to become curators as well. The formation of decentralized apps like Curate, which rely on blockchain technology and the crypto industry to provide a platform-style discovery, and rewards in digital tokens have sprung. Such apps like Curate rely on BTC, ETH and its CUR8 tokens in return for users curating fashion styles pillowed on a platform like these. Fashion brands and retailers can collaborate up with platforms to show off their designs and the latest Styles to raise brand awareness and at the same time, increase their online global sales.