Blockchain is not only about Cryptocurrency.
The usage of Blockchain is really beneficial for several other industries as well. The finance and healthcare industry is implementing Blockchain for a more secure, streamlined, transparent and cost-saving solution.
On the other hand, the fashion industry also has just started to utilise the potential of Blockchain quite well. So you see, the future of the Blockchain and Crypto market is quite bright.
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That makes this a perfect time to invest in the Crypto market with the help of the bitcoin loophole.
But before that, we believe knowing the benefits of Blockchain in the fashion industry will help your mind to understand the hope Blockchain is growing. It will obviously bring you considerable returns on investment.
But before that, let’s get a clear idea about what Blockchain actually is.
What Is Blockchain?
Blockchain is a digital ledger that is also decentralised. It is an open peer-to-peer network. Using Blockchain, participants can confirm any type of transaction without getting it approved by any central authority.
The most popular implementations of Blockchain technology are as follows.
- Voting.
- Setting trades.
- Money transfer.
- Supply chain management.
- Smart contracts.
- Patient’s record-keeping and a lot more.
Top 5 Ways Blockchain Can Influence The Fashion Industry Positively
As we have mentioned earlier, along with changing the financial sector, the potential of Bitcoin is also improving the fashion industry. When a lot of giant businesses from various industries are using Blockchain for a lot of reasons, the fashion industry is also participating in the race.
Here are the benefits that Bitcoin is bringing to the fashion industry.
Blockchain Supports Sustainable Practices
Through the lifecycle of a product, Blockchain can track any physical and digital product. Also, the transparency in the supply chain tracking provides a producer with a wide view into their own value chain.
Blockchain also allows them to guarantee the proper handover of third-party goods along with final product labelling. Blockchain is capable of tracking the entire progression of assets, showing previous asset records, and also recording every piece of information.
This way, the ethical and sustainable production and consumption of any type of commodity are possible with Blockchain on a global level.
Blockchain Redefine Customer Experience
Although the entire concept of sustainability had started as a “nice-to-have” form, at present, it has become a necessity. Consumers are now ready to pay more for sustainable goods.
By tokenizing physical assets along with letting customers see exactly where the items are being sourced, retailers are redefining customer experience with the help of Blockchain.
Blockchain Brings Authenticity
With Blockchain, brands can now tokenize non-fungible assets. Those assets also can be held, purchased, traded, and exchanged with ease. Customers also can log into the website of the brand in order to create and prove ownership of a luxury asset.
After being verified, that same asset can be transferred to another party. Retailers can label luxury items with a one-to-one counterfeit-proof feature. Through digital twin technology that connects and builds the link between the physical world and the digital world, the items will also be able to be tracked.
Blockchain Enhance Consumer Trust
Do you know the average transparency score between the top 200 most popular fashion brands and retailers?
It is only 21%.
Here, using Blockchain technology, brands always get the ability to digitise, trace, and track the complete lifecycle of a luxury item.
With Blockchain, any brand can develop a unique record of all steps in the supply chain along with capturing particular data points, like sustainability certifications. It also offers open access to all that data publicly.
Blockchain Reduce Cost
Operating costs can be reduced significantly using Blockchain technology in luxury and retail fashion. When the brands have better data management tools, enhanced supply chain management reduces the risk of grey markets and counterfeiting the operating cost will automatically get reduced.
We have already talked about supply chain management and product authenticity. Improving data management is a great cost-saving option. Blockchain offers lightweight, easy-to-integrate layers for data reconciliation across the service lines and also operations.
To Conclude
Now, you know how Blockchain technology is benefiting the fashion industry. Whether it’s in any high fashion or luxury brand, they always need to make a more transparent, streamlined, cost-saving process. Customer satisfaction is another one.
And, Blockchain is offering them everything.
