Blockchain Technology and Fashion Industry-Opportunities and Challenges

Abstract

Fashion and textile industry are one of the fastest growing sectors that involves a complex supply chain at local and global levels to procure raw materials and supply finished products to the market. The complexity of the industry demands for a system which is transparent, distributed and can protect the intellectual property rights. With key characteristics like decentralization, immutability, consensus etc., blockchain technology has the potential to enhance the exiting fashion industry by adding an extra layer of security and trust to it. One of the major challenges faced by the fashion industry is the counterfeit products flooding the market place. These fake products have a negative impact on the brand image and value. Blockchain has the ability to protect and secure the digital identities and establish authenticity in fashion industry. Despite of the exponentially growing popularity and interest in this technology, very little is known about the current state of application and use of blockchain in fashion and textile industry. This paper discusses the various aspects of the use of blockchain technology in the fashion and textile industry highlighting the benefits that blockchain could bring. The role of blockchain in providing potential solutions to the existing issues and challenges faced by the fashion industry are discussed with an insight into the current state of the blockchain technology in fashion industry. Further, the work also discusses the challenges in the integration of blockchain into the existing processes of the fashion and textile industry.