In the world of fashion, blockchain has the potential to revolutionize the way transactions are conducted, supply chains are tracked, and ownership is authenticated.
Blockchain technology has been considered one of the most promising innovations of the last decade. Originally designed to support cryptocurrencies, it has proven useful in different industries, including fashion.
In recent years, fashion and technology have been increasingly coming together to the point where the traditional textile sector has linked with one of the most disruptive technologies of the moment, blockchain technology.
Below, we show you the main use cases of blockchain technology in the fashion sector:
The fashion supply chain is complex and often opaque. Blockchain technology can provide transparency and traceability throughout the entire supply chain, allowing fashion companies and consumers to track and know the entire path that a product takes, from the origin of raw materials to when it reaches their hands.
In addition, blockchain technology can be used to ensure that ethical and environmental standards are met at all stages of the supply chain.
Blockchain technology can be used to authenticate the ownership of fashion products and reduce the sale of counterfeit products. Brands can register their products on the blockchain and consumers can verify their authenticity by scanning a QR code or an NFC chip. Additionally, this also helps protect the brand’s intellectual property.
Improvement of copyright management
By registering designs on the blockchain, designers can protect their works and receive compensation for their use. In addition, it can be used to ensure that licensing agreements are met and that copyright holders are adequately compensated.
Facilitation of international payments
Fashion companies can use virtual currencies to securely and efficiently send and receive international payments. This can reduce the cost and complexity of international transactions and help fashion companies expand into new markets.
Creation of loyalty programs
Blockchain technology can be used to create more effective and secure loyalty programs in the fashion sector. These companies can use tokens to reward customers for their loyalty and promote customer retention. In addition, customers can exchange these tokens for products or services from the brand.
Creation of digital garments
Brands can create collectible digital garments through NFTs, allowing owners to demonstrate their ownership and enjoy their exclusivity.
Thanks to these use cases and the benefits they provide, more and more fashion companies are adopting this technology and improving their efficiency.