What's The Fashion Industry Doing With Blockchain?
Socially awkward Introvert— A writer with always a story in mind.
Blockchain made the headlines in 2017 when Bitcoin gained traction. Ever since then, multiple industry-wide applications of blockchain tech broke the news. The distributed/decentralized ledger technology brought scalability, transaction speed, and better security that’d transform the world in coming years.
It was upto industry leaders to think of ways and area of uses. When most were thinking about what was obvious, some walked the road less taken. Hardly anyone gave a thought to the problems faced by the fashion industry. The centuries-old crumbling system needed an overhaul, and a few companies took the job upon themselves to change what hasn’t been changed.
Imagine wearing clothes, which you usually do, that collects data like body temperature, how frequent you wear it. Now, there may be other similar business model floating somewhere, but Loomia is different. Its use of Blockchain-based platform to build a loyalty scheme for the users separates it from any other identical concepts.
To turn this concept into reality, Loomia developed a soft circuit or fabric like electronic layer blended it with the cloth itself. This helps the circuit collect necessary data without giving a discomfort feeling. Powering the circuit is a small battery pack called Loomia tile which also stores all the collected data which then syncs with an anonymous and secure digital identity on Loomia
data exchange. The Loomia data exchange functions on Blockchain technology.
Users can choose to sell their data to research firms or brands. In return, users are rewarded with Loomia Token, digital asset. These rewards will be redeemable with other products or can be used to avail better discounts.
Sophistication in raw materials is one of the significant problems in the fashion world. The long and complicated supply chain suffers from lack of transparency giving space to impurities. Provenance calculated the scale of the issue and designed a blockchain-backed platform to help brands keep an eye on their products.
This blockchain startup not only tracks raw material from its genesis but also keep monitoring throughout the production process of the content. A lot of brands suffered from distrust over time because of the corrupt practices, with Provenance’s tracking, authenticity, and value can be restored.
Since blockchain is decentralized, impossible to tamper with and open-source platform, every person, be it, stakeholder or retailer, anyone involved in the process is empowered by the said technology. Meaning the supply chain remains clear from the origin to all the way through finished product.
Every product is scanned with an LCA lens then furthered down the supply chain and then to the consumer and keep tracking it until the product is disposed of. Provenance’s first collaboration came with Martine Jarlgaard, a London based designer.
CURATE is an Ethereum Blockchain powered DAPP that brings fashionistas/buyer/stakeholders together. Users can register and provide trusted and authentic reviews which give motivation to unique fashion creators. The positive votes or in this case, upvotes help CURATE new fashion trends with credible brands by sharing the reviews with them. The whole process leads to brand awareness and increased sales.
What makes this unique is its inbuilt reward system that rewards every stakeholder, and in return, CURATE gets a transparent community. Meant originally for people into fashion, whether a style creator, a follower or a mere retailer, everyone receives equal opportunity and room to share and study about other brands.
Every buyer or stakeholders earn digital token as a part of their reward system. Users can decide to get token as either BTC, ETH or CUR8. CURATE is at its phase-I where the company is focusing on gathering feedback through their telegram channel. The official rollout of the app will happen in 2020.
At the moment, most of the business models follow a hierarchy. The fashion industry, for example, has several levels of hierarchies, an artisan would design something awesome that goes to the manufacturing hub. The finished products then arrive shipping and logistics department where the department sends the item to the marketing department. Now, the marketing department in itself built on a hierarchical system for selling, advertising and whatnot.
is changing the age-old system by introducing a P2P model. All thanks to the adoption of Blockchain technology, customers now can directly get in touch with everyone involved in the process; be it designers, people who sew, fabric menders, and logistic handlers.
It builds a better ecosystem since the users can directly get involved in all the process like the creation of a new style, help in promotion, and even decide the price. The investment by users earns them incentives or rewards in the token form.
The fashion industry is on its way to evolution, it remained so long exploited, and while a bunch of made profits, a larger group suffered the consequences. Blockchain is giving a means to successfully integrate transparency mechanism and let the control of the user’s product with the user.
Disclosure: I carry no financial interest in the aforementioned firms. Provided details and brand mention is for informational purposes and is not intended to represent financial and/or legal advice.
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