Essay on Block chain Technology in Fashion Industry

Generally, the authenticity of information highly depends on trusting the centralized unit of a third-party firm or a system. However, there exists an information asymmetry among the individuals and organizations since centralized organization can become vulnerable to hacking. Blockchain technology ensures that something like this doesn’t happen. At present, fashion industry is facing similar type of challenges. For instance, there is an issue of quality and an organization not being able to track the delivery of products. The essence of blockchain technology is a scheme of reliable database which is maintained collectively using the trustless and decentralized method. This scheme is able to create block through almost any number of nodes in a specific system using cryptography. Just as the name suggests, it is like a chain composed of blocks. Each of the block contains data of transactions in a system within a certain period of time. It is also capable of creating digital fingerprinting that can be utilized for verifying the authenticity of information while connecting with the next block.

In the blockchain, there can be many blocks. The blocks are connected with each other in a chronological and linear order with every block containing a correct hash of the previous one. This technology can easily be visualized as a general term that includes technical schemes are same like NoSQL. At present, there are various methods for achieving it which include DPOS, POS, and POW. In accordance with the definition of blockchain, a system that is based on this technology has various features such as trustless, decentralized, collectively authentic databases, and even anonymity (Neisse, Steri, & Nai-Fovino, 2017).

Problem Statement: In the modern world; there are centralized organizations that can become vulnerable to hacking due to use of block-chain technology. However, with the use of technology there are also some issues of quality and an organization not being able to track the delivery of products (Cruise, 2019).

Decentralized: Fashion industry can take the advantage of the fact that in the whole network, even with the crashing of a node, the overall system will not fall. That is why, the system of blockchain is quite robust.

Trustless: Considering the fact that the whole system is working while being transparent, the system is open and there is no need to rely on trust among nodes. It means that no node can hamper the progress of the other.

Collectively Maintain: In the whole system, all the nodes maintain the blocks and almost anyone can be a node of the system after online registration.

Reliable Database: In the network, every node could obtain a copy of the database through the sub-database form. In addition, tampering with database by a node is no valid and that couldn’t impact the data of other nodes. Therefore, if there are numerous nodes in the network, it will become even more secure.

Anonymity: There is no need for the nodes to reveal anything about their identities since there is no requirement in terms of trust among nodes. It means that every node is anonymous in the network. The core issue resolved by the blockchain technology is the development of a network that retains the quality of products and brand image of an organization.

Governance Blockchain Technology in Fashion Industry

In blockchain technology, governance can be separated broadly into two primary groups:

1.      Off-Chain Governance

2.      On-Chain Governance

Off-Chain Governance Blockchain Technology in Fashion Industry

Off-chain governance seems to resemble traditional structures of governing. Ethereum and Bitcoin use this governing model through a balanced power between business entities, users, and miners as a part of community.

On-Chain Governance Blockchain Technology in Fashion Industry

On-chain governance is actually more of a recent iteration in blockchain technology and brings some polarizing and fascinating concepts with it. Therefore, implementations regarding the on-chain governance are still under-development.

Operations Blockchain Technology in Fashion Industry

            Two of the most important operations of blockchain technology include the improvement of supply chain and reducing the risk in category and sourcing management. Organizations can leverage improved transparency and trust of the blockchain for extending the management of supply chain. If blockchain is applied to logistics and transportation in the Fashion Industry, it can help in enhancing the visibility of supply chain, track the ownership or provenance of products, and streamline various processes. Blockchain can offer mutualized data source to Fashion Industry for decreasing risk and increasing transparency.

Technology Blockchain Technology in Fashion Industry

Basically, a blockchain is a distributed database or digital ledger. The whole network seems to contribute to its maintenance and creation. It means that there is no central authority in it. When 2 parties in the blockchain environment have a transaction, they advertise it to a certain network. Various nodes of network pick multiple transactions and organize them into blocks. That is when miners utilize their computers for adding this block to the blockchain or ledger.

Ethical Considerations Blockchain Technology in Fashion Industry

Since blockchain technology is being adopted widely, it is possible that just like Fashion Industry, it can cause positive changes for other industries as well. If society becomes used to the decentralization concepts, it might observe a shift towards not conflict but rather collaboration.

It is trust various projects are concerned with the environmental considerations of the ethics of blockchain, helping with the offsetting of carbon and making the management of waste more efficient. However, it is also true that work consensus method of the Bitcoin consumes a lot of energy. It has a significant effect on the environment.

There is a possibility that opportunities regarding the creation of wealth can help reduce income inequality. However, there is also a fact that such advantages are accessible to only those who have an access to the technology (Ahram, Sargolzaei, Sargolzaei, Daniels, & Amaba, 2017).

References of Blockchain Technology in Fashion Industry

Ahram, T., Sargolzaei, A., Sargolzaei, S., Daniels, J., & Amaba, B. (2017). Blockchain technology innovations. 2017 IEEE Technology & Engineering Management Conference (TEMSCON.

Cruise, T. (2019). Global Blockchain Market growing at a maximum CAGR of 60.8% during 2019-2025. Retrieved from http://bigtimesnews.com/2019/05/06/global-blockchain-market-growing-at-a-maximum-cagr-of-60-8-during-2019-2025/

Neisse, R., Steri, G., & Nai-Fovino, I. (2017). A blockchain-based approach for data accountability and provenance tracking. Proceedings of the 12th International Conference on Availability, Reliability and Security.