Over the last years, the word blockchain has become more and more popular, even though, for most people, it is still a rather abstract and novel concept, as is everything when it is just starting to emerge. Most people heard about blockchain when discussing cryptocurrencies, which have oscillated a lot in worth over the last years. For a better understanding, it can be said that the blockchain is the system or technology on which these currencies run. This means that it’s not just cryptocurrencies that can run on the blockchain, but that a lot of other systems can as well. In simple terms, a blockchain is a shared database or digital ledger that makes automatic updates across a network, without any need for an intermediary. Changes in the database are updated automatically via the internet and because every single entry is connected to everything else, the system is fair and powerful. A blockchain can be public or it can be private; it can be available to everyone or only to a group of people, companies or organizations.
The technology, which was invented back in 2009 by Satoshi Nakamoto, which is probably a pseudonym, since it is not known who really invented the blockchain, has become more and more of an integral part of many industries, as different companies, especially companies with very strong profiles, are starting to adapt it for their everyday work.
Currently, there is an increase in blockchain-based projects in fields such as banking, medicine or even transportation. In many ways, blockchain technology is connected to the IoT (Internet of Things), which can digitalize entire systems.
The fashion field is also increasingly interested in using blockchain, which is to be expected, as fashion is a rather conservative industry. However, lately, many brands have started to adapt to the newest developments in the area and working with blockchain technology. Surely, one of the most obvious one was to create a fashion coin, but other uses have come to the forefront as well.
For example, encrypted networks based on blockchain are now used to track and trace a product, with the goal of verifying its authenticity. With a huge market of counterfeit goods, this initiative is highly embraced by both brands and customers. Moreover, using blockchain-based systems, some companies are now working on allowing their customers to track and trace the materials from which the things they own are made. This is especially important for those who are concerned about the sources of gold, diamonds or other rocks. This can ensure the wearer that the things they have were mined and crafted in a way that one can wear them without having to worry about their provenance. For example, De Beers, the world’s biggest diamond producer utilizes Everledger blockchain-based technology to follow, source and check the authenticity of the diamonds at each point of distribution. The attributes of the stones included in a piece of jewelry, for example, can also be encrypted in a blockchain-based system.
At the moment, blockchain is a rather open field, with no regulations or standards governing it. However, it is increasingly popular among both companies and consumers, who see it as a new type of freedom generator, which can be an amazing tool for future developments.
The enthusiasm for blockchain is certainly present in the fashion industry, but at the moment people are still careful about the potential downsides the blockchain can have, even though, at a first glance it seems to be a rather good solution that, if used correctly can solve many issues for which the fashion industry has been highly criticized over the last years.
In the long run, blockchain-based systems will dominate the world and can ensure a better workflow in a highly-connected, but contrasting and dynamic world.
Fraquoh and Franchomme
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