After reading this post, you’ll have a better understanding of benefits of embracing blockchain for business transformation.
The fashion industry is among the most useful and need-centric sectors of all time. Moreover, expensiveness, status, and things like comfort are also people’s concerts in the fashion industry. Mostly, this industry has the worth equivalent to $3 trillion and contributes nearly 2% of the entire world’s GDP.
A big industry like fashion is vulnerable to many intermediate and gross issues. Few problems are recurrent throughout the world, and it takes a lot of industry to solve those problems. Factors like product counterfeiting, product corruption, high product pricing, etc., contribute to more serious issues in the fashion industry.
Though these problems are not only with the fashion industry, other industries also face these problems. But, since there’s blockchain technology, why does the fashion sector need to fear? Hire a professional blockchain development company and these problems will not show up further. So, let’s understand why and how the fashion industry should embrace blockchain for business transformation.
But, before exploring the ‘how-to’ factor, let’s understand the unique features blockchain technology obtains that are capable of reshaping every industry.
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Here are some of unique features that fashion industry can gain by embracing blockchain for business transformation.
Decentralization is among the moving features in the blockchain industry. As other systems fail to integrate a proper relationship with every participant, blockchain feels free to share everything and divide the responsibility among every participant. This means that every participant in the blockchain network is able to access every block’s information and transaction and event reports.
Though centralized servers aren’t an issue, blockchain systems are 99% hacking-proof. A centralized server acts as a specific and attackable target to intruders, but decentralized systems don’t keep any physical existence to feed hackers. By doing so, blockchain saves the security and integrity of blockchain networks. Unless some barbaric incident or malicious actors play their games in a blockchain network, networks are fully proof and secure from hacking and data manipulation.
Any data or information uploaded on the blockchain network further can’t be edited, manipulated, or deleted. That’s what makes blockchain a trustless network, where data manipulation factors don’t work.
Crucial Features of Blockchain Can Patronize In The Fashion Industry
Here are some of vital features that add value to fashion industry by transformation of blockchain for business.
Whether the fashion industry is named among the lucrative and competitive industries, every fashion entrepreneur will undoubtedly admit one major problem, product mimicking. A creative industry like fashion can never come under tight shackles of laws, so this problem is something inevitable and ever repeating. The report suggests that global product counterfeiting is nearly about $100 billion and is ever-increasing.
Though laws cannot deal with product integrity issues, blockchain can. With much effectiveness, Smart Contract, NFT, and IoT sensors can restrict these issues, with a 99% of success rate. Let’s understand the process.
Through a blockchain-based ecosystem, users can access the origin and the previous transactions the owner made till selling it to them. From sneakers, T-shirts, Denim, and any fashion product, IoT-enabled embedded chips, and distributed blockchain system can successfully reduce product mimicking features.
The blockchain industry is popular for bringing efficiency and transparency to a business process. The fashion industry’s embracement of blockchain systems will help manufacturers keep their business systems clean and efficient.
Every stakeholder of a product-building process keeps their personalized systems of translation and record, which often gets traumatic to register and manage. Also, this centralization system doesn’t help product mischief and process inspection processes which consequently reduces product quality and brand perception among consumers.
The blockchain system brings a decentralized approach to business and makes every process efficient and transparent. Moreover, decentralization systems don’t mean compromising security; blockchain comes among the safest and most secure systems on earth. So, that’s how blockchain development brings business efficiency to the fashion industry. Few brands are using and taking huge benefits from this technology.
The fashion industry comes among the very few industries where any pricing rule doesn’t work. Someone burning with creativity made something astonishing and sold millions of dollars; others sold the same product with a very minimum price; that’s normal.
Still, the amount of time and money invested in trademark verification, paperwork, and cost calculation-like activities is very high. The blockchain industry can’t fix the price duality or inconsistent pricing factors in the fashion industry but can successfully reduce product and paperwork processing time.
Also, supply chain management and product traceability things will be super easy to access with blockchain technology.
Lastly, blockchain technology is evident to reduce operational costs in any industry; surely the fashion industry will become more fashionable with blockchain incorporation throughout the process.
The current fashion industry isn’t little; it’s huge. Millions of intermediates and process workers participate in producing a product to deliver it to the right person. But, the more intermediaries, the more amount is added to a product.
Whether blockchain will size the industry by reducing the number of intermediates, though this will cut off income generation at a mass level, this will bring down the product pricing, and the brand can attract and convert more customers for product segmentation.
Similarly, cutting off the irrelevant working crowd of the industry will advantage fashion startups and wanna-be business owners. Blockchain’s going to relieve processing workers and save money and time resources to invest in human-centric aspects.
Focused blockchain implementation is costly firsthand, but blockchain development services are vast, and blockchain development companies can customize shared blockchain systems for them.
Blockchain systems are limitless, so how much blockchain can contribute to the fashion industry is still under great obscurity. Still, it’s measurable that half of the fashion industry toxins will vanish with one snap of blockchain for business. And the other half issues can’t stay well for the long-term; they’ll disappear too.
However, every new technology comes with its vulnerabilities. Blockchain technologies have their potential risks, not huge risks, but they should be managed well to use blockchain for real-world issues. A blockchain development company can well manage blockchain systems by adding more security, innovation, and other blockchain development service material to ensure the efficiency of that blockchain system.