to transform the operations of many companies around the world. It makes the textile, clothing and footwear industries more transparent.
What is BlockChain?
It is a group of blocks that carry digital information. Blocks contain information related to transactions, such as the date and time of transactions, and other related data (consumer profiles, purchasing behaviours). Each of the blocks contains a unique set of data that can be identified by a "HASH" code algorithm.
Furthermore, Blockchain is a decentralized and distributed ledger that stores transactions sequentially. It can be considered as a database that is shared on a public or private network.
Each user on the network has a copy of this shared database, which prevents malicious users from modifying the contents of the database. This database, or ledger, is for attachment only; You can only add to it but not change anything after the fact, due to the decentralized nature of blockchain. It can provide a peer-to-peer network that does not involve any intermediaries or regulatory authorities (banks, government, unions).
Transaction records on a blockchain can be used to identify the owner of an item of value. Transfer of ownership occurs through subsequent transactions, and this fact can be used to build a chain of ownership or authenticity. This data cannot be altered or corrupted.
Transparency
Blockchain, with its power of transparency, can do more than you can imagine. This is the era of smart technologies and every consumer, retailer, supplier, and manufacturer wants transparency in their products. A consumer today wants to know the history of products and wants to ensure their authenticity.
Brands are increasingly faced with the rise of the “conscious consumer”, who questions the environmental footprint of textiles, clothing and footwear. Exploring social conditions in factories and calls for greater transparency and sustainability. In fact, opaque and unethical practices carry substantial reputational risks, with the potential to impact corporate profitability, brand value and operational capabilities.
Advanced technologies such as blockchain, artificial intelligence and the Internet of Things (IoT) provide the opportunity to increase traceability and sustainability in fashion by creating a common source of verifiable transaction information, accessible to all parties in supply chains, regardless of their location, as long as they have internet access.
Solutions using Blockchains:
Blockchain technology can be extremely useful in the following ways:
1) Avoid product defects in supply chains: The process will be completely transparent, tracking everything from production to delivery.
2) Increase overall product quality and efficiency in the manufacturing process: Brands can identify weak links in their operations, such as a supplier that provides defective materials or a production department that does not adhere to defined quality standards.
3) Promoting direct business to ensure authenticity: The speed of a blockchain network can verify the authenticity of products within microseconds of their arrival. Eliminating middlemen increases the speed, efficiency, and quality of products.
4) Sealing information: The data is completely protected in the blockchain database. There is no central manager.
5) Minimizing costs: Blockchain uses algorithms to select the right suppliers; It can also reduce the cost of production and delivery. When the raw material arrives at the supplier, it is automatically registered in the system.
Supply chain management
New blockchain technologies can radically change the way clothing is produced, stored and delivered: filling gaps in reliability; and enabling transparency in supply chain management.
This new technology overcomes these problems by establishing a chain of transactions. For each virtual or physical good, there will be a complete list of transactions, leading back to the origin of an item (and its components). Data cannot be controlled or manipulated by a single party.
Whether it's sourcing raw materials or shipping to the end consumer, the supply chain industry is still plagued by inefficiencies and mismanagement. However, the use of blockchain will make practices less opaque. Suppliers who attempt to alter any records will be immediately identified.
By using blockchain networks, large and small clothing brands have easier transition points. This means that automation and scalability will not be limited to direct suppliers and geographic locations. More versatility is achieved.
Blockchain will help eliminate human error, which in turn will minimize delays and reduce costs.
Using blockchain in conjunction with Internet of Things (IoT) technologies such as RFID (radio frequency identification), raw materials can be tracked from their origin to the production factory to finished goods. Distribution networks then deliver them to retailers. The origin of each item can be traced, and substandard materials can be eliminated at the source.
Consumers will have access to tracking tools such as swing tag data and barcodes so they can directly follow the entire supply chain and production process to ensure authenticity.
Protection of intellectual property (intellectual property)
One of the main challenges in most industries is counterfeit products flooding the market. This reduces the profits of established brands and also reduces the quality of the items, which damages the reputation of the brand.
Another challenge is tracking shipments and timely delivery of products with the correct specifications. By implementing Blockchain, most of these problems are minimized.
Using blockchain, manufacturers and designers can protect their brands against counterfeiting. For each blockchain in fashion traceability item, its origin and ownership can be traced back to its source. Counterfeit products or replicas will not have an authentic chain of records and can therefore be easily removed.
Conclusion
Blockchains will allow access to all aspects of the supply chain, making the process efficient, easy to use and reliable, with reduced costs. With this revolution in the apparel industry, blockchains have already been recognized as the “next big thing.” Many brands have already started adopting this technology and have adopted it in its initial stages.
Apparel companies can securely communicate with consumers about the complete product history for each item. Blockchain technology is set to transform the technological advancement of supply chains in the fashion industry.
Blockchain technology will become an increasingly standard procedure as technical awareness increases among consumers and businesses.
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