Blockchain has been making waves over the last few years, with NFTs and cryptocurrencies reaching an all-new height of popularity in 2021, before it came crashing back down. Even though the value of crypto and NFTs has plummeted, the principles behind them have been taken and applied to countless industries, including fashion.
Improving Data Privacy
People are much more concerned about what information companies hold about them, especially on the back of an increase in complex breaches and scams. Given the decentralised nature of blockchain tech, fashion companies can offer full privacy to their customers because all information is stored on the blockchain. Essentially, this means that customers can withdraw access to their data at any time, and companies no longer have access to it.
Crypto Luxury Retailers
People that invested in Bitcoin before it exploded in price could be sat on a fortune, but other than withdrawing it or trading with other assets, there are not many places to put it. However, there’s been an increase in Bitcoin-accepting fashion retailers. For example, you can browse the bitdials.eu Rolex catalogue, to find attractive prices paid completely with crypto. The decentralised nature of Bitcoin means that buyers can rest easy knowing that their luxury fashion transactions aren’t being stored and traced by third-party companies.
A More Secure and Transparent Supply Chain
The fashion industry relies on an enormous supply chain to make sure authentic products reach runways, stores, and customers. However, the traditional supply chain is weak because it allows plenty of opportunity for fake items to sneak in, which brings down the integrity of the fashion industry.
Blockchain technology can help solve this problem by creating a truly transparent and completely traceable supply chain. Using smart contract technology, which allows NFTs to exist, a simple barcode scan along the supply chain can store information in the blockchain ledger.
As well as being more secure and transparent, blockchain-based supply chains are much faster. In most cases, authentication for fashion goods can take place in less than a second. This is because there are no middlemen to slow things down.
Entering the Metaverse
The Metaverse refers to virtual worlds that facilitate peer connections and activities, which often reflect those that would take place in the real world. Given the larger reach of the metaverse, many designers are choosing to put on fashion shows reflecting existing or potential lines in the real world. For example, the 2023 Metaverse Fashion Week used augmented reality to bring the likes of Coach, Tommy Hilfiger, Dolce & Gabbana, and Adidas to the eyes of countless spectators.
To link this back to blockchain technology, it’s the power of NFTs that allows these shows to be so successful. Spectators can purchase digital versions of clothes to upgrade the look of their metaverse avatar.
Blockchain has a clear space within the fashion industry, whether it’s creating a more secure landscape or providing digital wearables to consumers within the highly popular metaverse. If you haven’t explored the potential of blockchain tech yet, now is the perfect time.