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going to be set out like a magazine article over several pages
some will feature images, some will have quotes or diagrams
inspiration in layout comes from Arena Homme +

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How sustainability can be affected by blockchain

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How sustainability can be affected by blockchain

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According to a report from PwC, artificial intelligence, augmented reality, blockchain, drones, internet of things, robots, virtual reality and 3D printing are the eight emerging technologies that today's businesses need to familiarize themselves with. Of the eight, there is one technology that has many fashion insiders furrowing their brows in a vain attempt to understand it, and that technology is blockchain.

Devised in 2008 and executed in 2009, blockchain is a term that falls fast from the lips of many who still misunderstand it. For those who are yet to become intimate with the term, the first thing you should know is that blockchain is the primary technology behind the tech buzzword of 2013, bitcoin. Defined by Blockchaintechnologies.com as a type of distributed ledger, comprised of unchangable, digitally recorded data in packages called blocks, they explain blockchain further by stating that, "These digitally recorded 'blocks' of data are stored in a linear chain. Each block in the chain contains data (e.g. bitcoin transaction), is cryptographically hashed. The blocks of hashed data draw upon the previous-block (which came before it) in the chain, ensuring all data in the overall "blockchain " has not been tampered with and remains unchanged".

According to Alex Tapscott, blockchain is poised to revolutionize the world. As co-author of the famous book Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, And The World, Tapscott demystifies Bitcoin and blockchain technology, describing it as " a truly open, distributed, global platform that will fundamentally change what we can achieve online, how we do it, and who can participate." Tapscott also shared (with Forbes) that, "The first generation of the digital revolution brought us the Internet of information. The second generation - powered by blockchain technology - is bringing us the Internet of value".

If you are still lost on what this disruptive technology is all about then we recommend that you take a moment to watch this video by Institute for the Future before continuing on. It demystifies blockchain technology in under 2 minutes.

BABYGHOST x VeChain: Demonstrating Blockchain's Potential

Now that we have jumped over that hurdle we want to share with you great examples of when blockchain 'met' fashion. Let's start with the latest fashion tech collab between cult fashion brand BABYGHOST and VeChain. First announced at Shanghai's bi annual Fashion Week, the partnership, between the fashion brand and the tech product, demonstrates the unexplored potential blockchain technology can offer the fashion industry. VeChain, an anti-counterfeiting smartphone app created by Shanghai-based blockchain startup BitSE, " offers not just the emergence of blockchain technology and fashion, but arguably the most seamless pairing of this concept so far."

BitSE was founded in 2013. By 2015 the company had set up a blockchain lab where they researched distributed consensus, DAPPs, and smart contracts. Believing that "blockchain can change the world" and serve as the new generation of infrastructure, BitSE introduced their new product VeChain. Bragging blockchain technology as part of its core, VeChain works by providing a product verification and transparent supply chain solution to the manufacturers and brands against counterfeiting around the world. It is through the VeChain platform, that Intellectual Property(IP) protection will be conveniently secure. Simply put, VeChain makes it possible for IP contents to be easily written into the Public BlockChain database without concern of being overwritten.

VeChain, which uses an Ethereum-based blockchain,gave those attending BABYGHOST's runway show a peek into a future where it is 'normal' for people to interact with their clothing on their smartphones, and explore a product's origins, materials, designing concepts and brand stories. On this, Sunny Lu, COO of BitSE, shared " Our mission is to transform this sophisticated technology to a real-world commercial application and make it enjoyable for consumers". He continued, "VeChain pushes blockchain technology out to the world. We believe blockchain can change the world and that's why we are building applications that everyone can use"

"Blockchain can change the world and serve as the new generation of infrastructure" -BitSE

VeChain was key when it came to how people connected with the BABYGHOST brand. On this BABYGHOST cofounders Qioran Huang and Joshua Hupper shared " Imagine that each garment now goes from being one of many to a one of a kind. It can literally speak to our fans similarly to the way that we love communicating with them via social media." ,Lu added "What VeChain has done with BABYGHOST is bring digital experiences to their consumers and enable them to build up a personalized connection with the products they own."

Blockchain, Crime Fighter?

This collaboration did not only elevate BABYGHOST's interaction with technology, but it also opened our eyes to the fact that blockchain goes beyond the financial services. It is a technology that is opening new opportunities to fashion entrepreneurs and brands. Although not widely used in the fashion industry yet, the one area that blockchain technology is set to make positive changes too is the world of luxury commerce, by dealing with its biggest problem, counterfeit. Companies like Blockchain Tech Ltd founded by Guy Halford-Thompson, uses blockchain technology to tackle the problem of fake goods in the luxury sector. They are achieving this by creating a secure registry which tracks who owns designer products. The database holds everything a consumer will require to determine whether the product they are about to purchase is actually genuine. On what the future holds, Thompson sees the fashion industry being dependent on blockchain and smart tagging.

"By combining blockchain technology and smart tags, undetectable forgery becomes impossible." -Chronicled

Blockchain Tech LTD is not alone in tackling this problem. Chronicled is another company introducing blockchain technology to the fashion industry. Similar to Blockchain Tech Ltd., Chronicled uses smart tags to track authentic sneakers being sold on the market so they can give control back to the consumer. Using their mobile app, you will be able to scan the smart tag of a product and get all of the information about its authenticity in a matter of seconds. On this, CEO of Chronicled Ryan Orr shared "By combining blockchain technology and smart tags, undetectable forgery becomes impossible, and wearing fakes becomes socially risky."

Blockchain: Mapping A Product's Jouney

Fighting counterfeit is not the only perk that blockchain technology can offer the fashion world, it also gives consumers and brands the opportunity to track and display supply chain information. Making this possible is a company called Provenance. They have used blockchain to build a traceability data system that will securely store information that is inherently auditable, unchangeable and open. Their objective is to work towards an open traceability protocol that allows them to tell 'every product's story'using blockchain technology in a way that enables secure traceability of certifications and other information in the supply chains. What we love most about Provenance, is that it answers the question, where does my product come from? They do this by making sure that every physical product comes with a digital 'passport' that not only proves the product's authenticity, but also creates an auditable record of the journey the product took.

As one of the eight emerging technologies, blockchain technology is empowering brands to take steps towards greater transparency. Which means that should you ever want to trace the origins, foot print and histories of that cute dress you have your eye on, then blockchain technology will be able to tell you the product's story which leaves us wondering, is fashion ready to be that honest and transparent?

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Is Blockchain Technology Set to Revolutionize the Fashion Industry?

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According to a report from PwC, artificial intelligence, augmented reality, blockchain, drones, internet of things, robots, virtual reality and 3D printing are the eight emerging technologies that today's businesses need to familiarize themselves with. Of the eight, there is one technology that has many fashion insiders furrowing their brows in a vain attempt to understand it, and that technology is blockchain.

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Transparency and sustainability remain two of the largest topics within the global fashion industry today. While many brands and retailers are beginning to pay more attention to their supply chains' environmental and social impact, adopting new ways of working more transparently remains a challenge. However, thanks to the emergence of new technologies, like blockchain, retailers can improve supply chain traceability while offering more transparency into their manufacturing streams.

Following the shift of the 1990s to offshore production, which saw many fast-fashion retailers relocate their production factories abroad in pursuit of lower labour costs, supply chains have become more complex and opaque. According to recent research from the Fashion Revolution, only 31% of the top 62 surveyed global retailers disclose part of their garment production sites, with only one brand revealing the full list of all its production sites. This remains problematic, as the lack of transparency into supply chains makes it more challenging to hold fashion companies accountable for the conditions under which their garments are made.

Simultaneously, there is increasing demand from consumers and industry players alike for more sustainable, ethically made products. Two respective global studies conducted in 2020 by the IBM Institute for Business Value in association with the National Retail Federation and leading Austria-based sustainable fiber producer, Lenzing, found that 77% of consumers surveyed said sustainability is important to them, 57% of respondents were willing to change their buying habits to reduce any negative impact on the environment, and 70% will actively educate themselves on sustainability through researching the production process. Another study carried out by Morning Consult found that 64% of respondents were more likely to purchase a garment if new technologies could prove its sustainability claims.

One latest technology, which lets retailers prove their sustainability claims while offering greater transparency, is blockchain. People familiar with the concept tend to think of cryptocurrencies, like Bitcoins. For those unfamiliar with this relatively new and disruptive technology, blockchain is a digital network created to help decentralize trade and allow for more peer to peer transactions. Many compare it to an encrypted Excel sheet, which keeps track of all transactions approved by a digital, decentralized system. People can access this digital ledger and add new information, which is then linked to the current data stored and become part of the chain. But how can the fashion industry make use of this technology?

When it comes to manufacturing, suppliers can use blockchain technology to store and share information regarding the source of raw materials -- from how it was grown, where it was stored, the amount shipped to the textile mill and the number items made -- to create a permanent, immutable digital record of all the materials used in production. By storing this information concerning manufacturing in a blockchain system, rather than through an internal or analogue system, all the information added to the blockchain can easily be accumulated and self-validated, while remaining accessible to anyone with a QR Code or NFC reader.

The first garment tracked using blockchain technology was made by Danish designer Martine Jarlgaard in 2018. The result of a partnership between A Transparent Company, Provenance and London College of Fashion's innovation agency, each step of the manufacturing process of a jumper was tracked and registered via blockchain through the Provenance app. Since then, other major fashion players have begun to explore how blockchain can help the garment industry work better together while creating a permanent record of the origin of materials used in production.

In late 2020, Lenzing, fashion brand ArmedAngels, and wool tops producer Schneider Group joined forces with TextileGenesis™, a pioneering traceability platform designed to support the apparel ecosystem, to launch a new pilot programme. The pilot uses blockchain to trace the origins of 45 garments containing TENCEL™ and LENZING™ECOVERO™ branded fibers, and AUTHENTICO® organic wool, from supply chains spanning six countries. This unique pilot, which uses the innovative Fibercoin™ technology from the TextileGenesis™ platform, allows the three companies the opportunity to issue digital tokens related to the physical shipments of the LENZING™ECOVERO™, TENCEL™ and AUTHENTICO® fibers. The tokens generate a unique 'fingerprint' and authentication mechanism, providing a secure, digital chain-of-custody across the textile value chain.

Photo credit: TextileGenesis™

"Fashion is one of the most fragmented industries, resulting in highly opaque supply chains. Our focus from the beginning has been to build a truly scalable fiber-to-retail traceability platform for the industry," says Amit Gautam, CEO & Founder of TextileGenesis™. The collaboration with ArmedAngels, Schneider and TextileGenesis™ is the second blockchain project supported by Lenzing, following its debut blockchain traceability platform for TENCEL™ fibers launched at the Hong Kong Fashion Summit in 2019.

Although there are still challenges to be faced with the widespread adoption of blockchain, the future potential for the technology is evident. Blockchain is unregulated at this point in time, without any standards or certifications set in place to safeguard and structure the ongoing development of blockchain solutions. Blockchain is also costly, making it unviable for many smaller brands. However, the future possibilities offered by blockchain are too large to be ignored. "We believe traceability and sustainability are deeply interconnected, and as market pioneers, we are paving the way for the rest of the industry," says Robert van de Kerkhof, Chief Commercial Officer and Board member of Lenzing.

To find out more about Lenzing, go to www.lenzing.com

Header photo credit: Lenzing

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How blockchain is paving the way for greater transparency & sustainability within the fashion industry

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Transparency and sustainability remain two of the largest topics within the global fashion industry today. While many brands and retailers are beginning to pay more attention to their supply chains' environmental and social impact, adopting new ways of working more transparently remains a challenge.

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Intro to what blockchain is
Examples in fashion
sustainability & transparency in supply chains
removal of counterfeit
what the future holds

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How fashion brands are taking advantage of blockchain apparel - Everledger

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The fast-growing consumer desire for sustainable clothing is increasing demand for blockchain apparel solutions that allow brands to communicate traceability and ethical sourcing. The luxury apparel industry is adapting to three key challenges. Firstly, there is the rapid growth of counterfeiting, which has grown into a global and highly-sophisticated market worth billions of [...]

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The global platform for the MCQ community

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What Is a Blockchain?

A blockchain is a distributed database or ledger shared among a computer network's nodes. They are best known for their crucial role in cryptocurrency systems for maintaining a secure and decentralized record of transactions, but they are not limited to cryptocurrency uses. Blockchains can be used to make data in any industry immutable-the term used to describe the inability to be altered.

Because there is no way to change a block, the only trust needed is at the point where a user or program enters data. This aspect reduces the need for trusted third parties, which are usually auditors or other humans that add costs and make mistakes.

Since Bitcoin's introduction in 2009, blockchain uses have exploded via the creation of various cryptocurrencies, decentralized finance (DeFi) applications, non-fungible tokens (NFTs), and smart contracts.

How Does a Blockchain Work?

You might be familiar with spreadsheets or databases. A blockchain is somewhat similar because it is a database where information is entered and stored. But the key difference between a traditional database or spreadsheet and a blockchain is how the data is structured and accessed.

A blockchain consists of programs called scripts that conduct the tasks you usually would in a database: Entering and accessing information and saving and storing it somewhere. A blockchain is distributed, which means multiple copies are saved on many machines, and they must all match for it to be valid.

The blockchain collects transaction information and enters it into a block, like a cell in a spreadsheet containing information. Once it is full, the information is run through an encryption algorithm, which creates a hexadecimal number called the hash.

The hash is then entered into the following block header and encrypted with the other information in the block. This creates a series of blocks that are chained together.

Transaction Process

Transactions follow a specific process, depending on the blockchain they are taking place on. For example, on Bitcoin's blockchain, if you initiate a transaction using your cryptocurrency wallet-the application that provides an interface for the blockchain-it starts a sequence of events.

In Bitcoin, your transaction is sent to a memory pool, where it is stored and queued until a miner or validator picks it up. Once it is entered into a block and the block fills up with transactions, it is closed and encrypted using an encryption algorithm. Then, the mining begins.

The entire network works simultaneously, trying to "solve" the hash. Each one generates a random hash except for the "nonce," short for number used once.

Every miner starts with a nonce of zero, which is appended to their randomly-generated hash. If that number isn't equal to or less than the target hash, a value of one is added to the nonce, and a new block hash is generated. This continues until a miner generates a valid hash, winning the race and receiving the reward.

Once a block is closed, a transaction is complete. However, the block is not considered to be confirmed until five other blocks have been validated. Confirmation takes the network about one hour to complete because it averages just under 10 minutes per block (the first block with your transaction and five following blocks multiplied by 10 equals about 60 minutes).

Not all blockchains follow this process. For instance, the Ethereum network randomly chooses one validator from all users with ether staked to validate blocks, which are then confirmed by the network. This is much faster and less energy intensive than Bitcoin's process.

Blockchain Decentralization

A blockchain allows the data in a database to be spread out among several network nodes-computers or devices running software for the blockchain-at various locations. This not only creates redundancy but maintains the fidelity of the data. For example, if someone tries to alter a record at one instance of the database, the other nodes would prevent it from happening. This way, no single node within the network can alter information held within it.

Because of this distribution-and the encrypted proof that work was done-the information and history (like the transactions in cryptocurrency) are irreversible. Such a record could be a list of transactions (such as with a cryptocurrency), but it also is possible for a blockchain to hold a variety of other information like legal contracts, state identifications, or a company's inventory.

Blockchain Transparency

Because of the decentralized nature of the Bitcoin blockchain, all transactions can be transparently viewed by either having a personal node or using blockchain explorers that allow anyone to see transactions occurring live. Each node has its own copy of the chain that gets updated as fresh blocks are confirmed and added. This means that if you wanted to, you could track a bitcoin wherever it goes.

For example, exchanges have been hacked in the past, resulting in the loss of large amounts of cryptocurrency. While the hackers may have been anonymous-except for their wallet address-the crypto they extracted are easily traceable because the wallet addresses are published on the blockchain.

Of course, the records stored in the Bitcoin blockchain (as well as most others) are encrypted. This means that only the person assigned an address can reveal their identity. As a result, blockchain users can remain anonymous while preserving transparency.

Is Blockchain Secure?

Blockchain technology achieves decentralized security and trust in several ways. To begin with, new blocks are always stored linearly and chronologically. That is, they are always added to the "end" of the blockchain. After a block has been added to the end of the blockchain, previous blocks cannot be changed.

A change in any data changes the hash of the block it was in. Because each block contains the previous block's hash, a change in one would change the following blocks. The network would reject an altered block because the hashes would not match.

For instance, imagine that a hacker runs a node on a blockchain network and wants to alter a blockchain and steal cryptocurrency from everyone else. If they were to change their copy, they would have to convince the other nodes that their copy was the valid one.

They would need to control a majority of the network to do this and insert it at just the right moment. This is known as a 51% attack because you need to control more than 50% of the network to attempt it.

Timing would be everything in this type of attack-by the time the hacker takes any action, the network is likely to have moved past the blocks they were trying to alter. This is because the rate at which these networks hash is exceptionally fast-the Bitcoin network hashed at 348.1 exahashes per second (18 zeros) on April 21, 2023.

Bitcoin vs. Blockchain

Blockchain technology was first outlined in 1991 by Stuart Haber and W. Scott Stornetta, two researchers who wanted to implement a system where document timestamps could not be tampered with. But it wasn't until almost two decades later, with the launch of Bitcoin in January 2009, that blockchain had its first real-world application.

The Bitcoin protocol is built on a blockchain. In a research paper introducing the digital currency, Bitcoin's pseudonymous creator, Satoshi Nakamoto, referred to it as "a new electronic cash system that's fully peer-to-peer, with no trusted third party."

The key thing to understand is that Bitcoin uses blockchain as a means to transparently record a ledger of payments or other transactions between parties.

Blockchain

Blockchain can be used to immutably record any number of data points. This could be in the form of transactions, votes in an election, product inventories, state identifications, deeds to homes, and much more.

Currently, tens of thousands of projects are looking to implement blockchains in various ways to help society other than just recording transactions-for example, as a way to vote securely in democratic elections.

The nature of blockchain's immutability means that fraudulent voting would become far more difficult. For example, a voting system could work such that each country's citizens would be issued a single cryptocurrency or token.

Each candidate would then be given a specific wallet address, and the voters would send their token or crypto to the address of whichever candidate for whom they wish to vote. The transparent and traceable nature of blockchain would eliminate the need for human vote counting and the ability of bad actors to tamper with physical ballots.

Blockchain vs. Banks

Blockchains have been heralded as a disruptive force in the finance sector, especially with the functions of payments and banking. However, banks and decentralized blockchains are vastly different.

To see how a bank differs from blockchain, let's compare the banking system to Bitcoin's blockchain implementation.

How Are Blockchains Used?

As we now know, blocks on Bitcoin's blockchain store transactional data. Today, more than 23,000 other cryptocurrency systems are running on a blockchain. But it turns out that blockchain is a reliable way of storing data about other types of transactions.

Some companies experimenting with blockchain include Walmart, Pfizer, AIG, Siemens, and Unilever, among others. For example, IBM has created its Food Trust blockchain to trace the journey that food products take to get to their locations.

Why do this? The food industry has seen countless outbreaks of E. coli, salmonella, and listeria; in some cases, hazardous materials were accidentally introduced to foods. In the past, it has taken weeks to find the source of these outbreaks or the cause of sickness from what people are eating.

Using blockchain allows brands to track a food product's route from its origin, through each stop it makes, to delivery. Not only that, but these companies can also now see everything else it may have come in contact with, allowing the identification of the problem to occur far sooner-potentially saving lives. This is one example of blockchain in practice, but many other forms of blockchain implementation exist.

Banking and Finance

Perhaps no industry stands to benefit from integrating blockchain into its business operations more than banking. Financial institutions only operate during business hours, usually five days a week. That means if you try to deposit a check on Friday at 6 p.m., you will likely have to wait until Monday morning to see that money hit your account.

Even if you make your deposit during business hours, the transaction can still take one to three days to verify due to the sheer volume of transactions that banks need to settle. Blockchain, on the other hand, never sleeps.

By integrating blockchain into banks, consumers might see their transactions processed in minutes or seconds-the time it takes to add a block to the blockchain, regardless of holidays or the time of day or week. With blockchain, banks also have the opportunity to exchange funds between institutions more quickly and securely. Given the size of the sums involved, even the few days the money is in transit can carry significant costs and risks for banks.

The settlement and clearing process for stock traders can take up to three days (or longer if trading internationally), meaning that the money and shares are frozen for that period. Blockchain could drastically reduce that time.

Blockchain forms the bedrock for cryptocurrencies like Bitcoin. The U.S. dollar is controlled by the Federal Reserve. Under this central authority system, a user's data and currency are technically at the whim of their bank or government. If a user's bank is hacked, the client's private information is at risk.

If the client's bank collapses or the client lives in a country with an unstable government, the value of their currency may be at risk. In 2008, several failing banks were bailed out-partially using taxpayer money. These are the worries out of which Bitcoin was first conceived and developed.

By spreading its operations across a network of computers, blockchain allows Bitcoin and other cryptocurrencies to operate without the need for a central authority. This not only reduces risk but also the processing and transaction fees.

Using cryptocurrency wallets for savings accounts or as a means of payment is especially profound for those without state identification. Some countries may be war-torn or have governments lacking any real identification infrastructure. Citizens of such countries may not have access to savings or brokerage accounts-and, therefore, no way to safely store wealth.

Healthcare

Healthcare providers can leverage blockchain to store their patients' medical records securely. When a medical record is generated and signed, it can be written into the blockchain, which provides patients with the proof and confidence that the record cannot be changed. These personal health records could be encoded and stored on the blockchain with a private key so that they are only accessible to specific individuals, thereby ensuring privacy.

Property Records

If you have ever spent time in your local Recorder's Office, you will know that recording property rights is both burdensome and inefficient. Today, a physical deed must be delivered to a government employee at the local recording office, where it is manually entered into the county's central database and public index. In the case of a property dispute, claims to the property must be reconciled with the public index.

This process is not just costly and time-consuming, it is also prone to human error, where each inaccuracy makes tracking property ownership less efficient. Blockchain has the potential to eliminate the need for scanning documents and tracking down physical files in a local recording office. If property ownership is stored and verified on the blockchain, owners can trust that their deed is accurate and permanently recorded.

In war-torn countries or areas with little to no government or financial infrastructure and no Recorder's Office, proving property ownership can be nearly impossible. If a group of people living in such an area can leverage blockchain, then transparent and clear timelines of property ownership could be established.

Smart Contracts

A smart contract is a computer code that can be built into the blockchain to facilitate a contract agreement. Smart contracts operate under a set of conditions to which users agree. When those conditions are met, the terms of the agreement are automatically carried out.

Say, for example, that a potential tenant would like to lease an apartment using a smart contract. The landlord agrees to give the tenant the door code to the apartment as soon as the tenant pays the security deposit. The smart contract would automatically send the door code to the tenant when it was paid. It could also be programmed to change the code if rent wasn't paid or other conditions were met.

Supply Chains

As in the IBM Food Trust example, suppliers can use blockchain to record the origins of materials that they have purchased. This would allow companies to verify the authenticity of not only their products but also common labels such as "Organic," "Local," and "Fair Trade."

As reported by Forbes, the food industry is increasingly adopting the use of blockchain to track the path and safety of food throughout the farm-to-user journey.

As mentioned above, blockchain could facilitate a modern voting system. Voting with blockchain carries the potential to eliminate election fraud and boost voter turnout, as was tested in the November 2018 midterm elections in West Virginia.

Using blockchain in this way would make votes nearly impossible to tamper with. The blockchain protocol would also maintain transparency in the electoral process, reducing the personnel needed to conduct an election and providing officials with nearly instant results. This would eliminate the need for recounts or any real concern that fraud might threaten the election.

Pros and Cons of Blockchain

For all of its complexity, blockchain's potential as a decentralized form of record-keeping is almost without limit. From greater user privacy and heightened security to lower processing fees and fewer errors, blockchain technology may very well see applications beyond those outlined above. But there are also some disadvantages.

Benefits of Blockchains

Accuracy of the Chain

Transactions on the blockchain network are approved by thousands of computers and devices. This removes almost all people from the verification process, resulting in less human error and an accurate record of information. Even if a computer on the network were to make a computational mistake, the error would only be made to one copy of the blockchain and not be accepted by the rest of the network.

Cost Reductions

Typically, consumers pay a bank to verify a transaction or a notary to sign a document. Blockchain eliminates the need for third-party verification-and, with it, their associated costs. For example, business owners incur a small fee when they accept credit card payments because banks and payment-processing companies have to process those transactions. Bitcoin, on the other hand, does not have a central authority and has limited transaction fees.

Decentralization

Blockchain does not store any of its information in a central location. Instead, the blockchain is copied and spread across a network of computers. Whenever a new block is added to the blockchain, every computer on the network updates its blockchain to reflect the change.

By spreading that information across a network, rather than storing it in one central database, blockchain becomes more difficult to tamper with.

Efficient Transactions

Transactions placed through a central authority can take up to a few days to settle. If you attempt to deposit a check on Friday evening, for example, you may not actually see funds in your account until Monday morning. Financial institutions operate during business hours, usually five days a week-but a blockchain works 24 hours a day, seven days a week, and 365 days a year.

On some blockchains, transactions can be completed in minutes and considered secure after just a few. This is particularly useful for cross-border trades, which usually take much longer because of time zone issues and the fact that all parties must confirm payment processing.

Private Transactions

Many blockchain networks operate as public databases, meaning anyone with an internet connection can view a list of the network's transaction history. Although users can access transaction details, they cannot access identifying information about the users making those transactions. It is a common misperception that blockchain networks like Bitcoin are fully anonymous; they are actually pseudonymous because there is a viewable address that can be associated with a user if the information gets out.

Secure Transactions

Once a transaction is recorded, its authenticity must be verified by the blockchain network. After the transaction is validated, it is added to the blockchain block. Each block on the blockchain contains its unique hash and the unique hash of the block before it. Therefore, the blocks cannot be altered once the network confirms them.

Transparency

Most blockchains are entirely open-source software. This means that everyone can view its code. This gives auditors the ability to review cryptocurrencies like Bitcoin for security. However, it also means there is no real authority on who controls Bitcoin's code or how it is edited. Because of this, anyone can suggest changes or upgrades to the system. If a majority of the network users agree that the new version of the code with the upgrade is sound and worthwhile, then Bitcoin can be updated.

Banking the Unbanked

Perhaps the most profound facet of blockchain and cryptocurrency is the ability for anyone, regardless of ethnicity, gender, location, or cultural background to use it. According to The World Bank, an estimated 1.3 billion adults do not have bank accounts or any means of storing their money or wealth. Moreover, nearly all of these individuals live in developing countries where the economy is in its infancy and entirely dependent on cash.

These people are often paid in physical cash. They then need to store this physical cash in hidden locations in their homes or other places, incentivizing robbers or violence. While not impossible to steal, crypto makes it more difficult for would-be thieves.

Blockchains of the future are also looking for solutions to not only be a unit of account for wealth storage but also to store medical records, property rights, and a variety of other legal contracts.

Drawbacks of Blockchains

Technology Cost

Although blockchain can save users money on transaction fees, the technology is far from free. For example, the Bitcoin network's proof-of-work system to validate transactions consumes vast amounts of computational power. In the real world, the energy consumed by the millions of devices on the Bitcoin network is more than Pakistan consumes annually.

Some solutions to these issues are beginning to arise. For example, bitcoin-mining farms have been set up to use solar power, excess natural gas from fracking sites, or energy from wind farms.

Speed and Data Inefficiency

Bitcoin is a perfect case study for the possible inefficiencies of blockchain. Bitcoin's PoW system takes about 10 minutes to add a new block to the blockchain. At that rate, it's estimated that the blockchain network can only manage about three transactions per second (TPS). Although other cryptocurrencies, such as Ethereum, perform better than Bitcoin, blockchain still limits them. Legacy brand Visa, for context, can process 65,000 TPS.

Solutions to this issue have been in development for years. There are currently blockchains that boast more than 30,000 TPS. Ethereum's merge between its main net and beacon chain (Sep. 15, 2022) is predicted to allow up to 100,000 TPS after it rolls out a series of upgrades that include sharding-a splitting of the database so that more devices (phones, tablets, and laptops) can run Ethereum. This is expected to increase network participation, reduce congestion, and increase transaction speeds.

The other issue is that each block can only hold so much data. The block size debate has been and continues to be one of the most pressing issues for the scalability of blockchains going forward.

Illegal Activity

While confidentiality on the blockchain network protects users from hacks and preserves privacy, it also allows for illegal trading and activity on the blockchain network. The most cited example of blockchain being used for illicit transactions is probably the Silk Road, an online dark web illegal-drug and money laundering marketplace operating from February 2011 until October 2013, when the FBI shut it down.

The dark web allows users to buy and sell illegal goods without being tracked by using the Tor Browser and make illicit purchases in Bitcoin or other cryptocurrencies. This is in stark contrast to U.S. regulations, which require financial service providers to obtain information about their customers when they open an account. They are supposed to verify the identity of each customer and confirm that they do not appear on any list of known or suspected terrorist organizations.

This system can be seen as both a pro and a con. It gives anyone access to financial accounts, but allows criminals to transact more easily. Many have argued that the good uses of crypto, like banking the unbanked world, outweigh the bad uses of cryptocurrency, especially when most illegal activity is still accomplished through untraceable cash.

Regulation

Many in the crypto space have expressed concerns about government regulation over cryptocurrencies. While it is getting increasingly difficult and near impossible to end something like Bitcoin as its decentralized network grows, governments could theoretically make it illegal to own cryptocurrencies or participate in their networks.

This concern has grown smaller over time as large companies like PayPal begin to allow customers to use cryptocurrencies on their e-commerce platforms.

What Is a Blockchain in Simple Terms?

How Many Blockchains Are There?

What's the Difference Between a Private Blockchain and a Public Blockchain?

The Bottom Line

With many practical applications for the technology already being implemented and explored, blockchain is finally making a name for itself in no small part because of Bitcoin and cryptocurrency. As a buzzword on the tongue of every investor in the nation, blockchain stands to make business and government operations more accurate, efficient, secure, and cheap, with fewer middlemen.

As we head into the third decade of blockchain, it's no longer a question of if legacy companies will catch on to the technology-it's a question of when. Today, we see a proliferation of NFTs and the tokenization of assets. As a result, the next decades will prove to be a significant period of growth for blockchain.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes online. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the assets discussed here.

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Blockchain Facts: What Is It, How It Works, and How It Can Be Used

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A blockchain is a digitally distributed, decentralized, public ledger that exists across a network. It is most noteworthy in its use with cryptocurrencies and NFTs.

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All images look techy and link to blockchain within fashion. I then narrowed them down to 3, these all have wording which make the image easier to understand. The final image i chose because it makes blockchain seem easy to understand, therefore more enticing for a reader to continue with the article

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When you think of the great fashion houses of our past, they're almost always attached to brilliant designers and creative directors who took the brand to new heights. But what if there existed a label that didn't have a creative head at all, and instead ceded creative control to a rotating cast of collaborators?

That's what Alexander McQueen 's MCQ is doing with their new technology-driven label and platform - an ever-shifting collective that partners with new creatives each cycle and gives collaborators complete freedom to express themselves in ways most fashion houses could never accommodate. It's a new model that's never been done before - they dismantled their previous line, McQ by Alexander McQueen, and built a pioneering label with its own identity separate from Alexander McQueen.

MCQ is ultimately a creative collective built around acknowledging the very creators who participate and bring each collection to life, or 'icon' as the house calls it. Because MCQ has no internal hierarchy or creative head, the team is run by individuals who come from similar worlds and share similar interests as their collaborators, making it a people-powered platform open to disruptive ideas and challenging fashion's status quo.

MCQ's idea of collaboration isn't just for co-branding's sake. It's a fluid conversation between up-and-coming creatives around the world and providing them with a global platform to bring their ideas to life. Collaborators have the potential to touch everything from designing products to curating the music at their icon's launch party, and everything in between. The idea is to empower and uplift a new generation of creatives who may not have had the opportunity to do so.

That's also why MCQ makes it a point for collaborators to be credited by name on its tags. Those names are always there and visible, a rare move for a fashion brand of this nature. Rather than just being touted as promotional figures for the collection, like appearing in the campaign or show, collaborators are credited as originators and part of the voice that created the garment.

This democratic approach means MCQ can operate on their own terms instead of fashion's usual seasonal hierarchy. Working in six-month cycles, expect at least three icons dropping per cycle - each telling an entirely new story, from visuals to collaborators to its launch event and location.

One way MCQ visualizes an open and collaborative ethos is through its ultra-minimal logo: an exploded, stripped-down version of what vaguely resembles the British Union Jack flag, one that MCQ calls the 'Phantom Jack.' But instead of being a nationalist symbol, it's the opposite. It's a flag with a space at its center, lines converging to form a platform or stage. That stage elevates the voice, and the voice in MCQ's expressive form becomes the content that sits at its heart - which is new identities, new statements, and a whole world of new creations. The Phantom Jack is the closest thing you'll see to a logo in this label - it's the pure distillation of MCQ's core values and the heart of its identity.

Another feature that's been tried in the past but only now can be fully unlocked through the advent of technology is item tracking and true authentication. Each icon presented by MCQ is fully traceable through its digital platform MYMCQ - a first-of-its-kind system that uses blockchain and NFC technology to unlock innovative features. Launching September 3rd, not only can MYMCQ deliver historical information on entire archives, but it's also a media hub where anyone can interact with the label, access behind-the-scenes content, interviews with collaborators and other creatives within the MCQ community, and more.

MCQ partnered with Everledger, the blockchain-powered ledger startup, to build these features from the ground up, allowing anyone to discover everything there is to know about an item with one swipe of your phone - from where and when it was made to how many were produced and which collection it came from. They're the first company to work on a blockchain-NFC protocol that enables people to interact with physical garments and claim ownership of it through a blockchain. By offering its own peer-to-peer marketplace, collectors have a dedicated space to find their favorite drops, which encourages less waste in the long run since resale increases each item's lifespan.

Being the label of the future means you also have to think about the impact you're having on it. As with any packaged good, shipping most items entail multiple stages of package waste - goods are often repacked several times before reaching consumers. To combat this, MCQ designers created an end-to-end packaging system to significantly reduce excess waste, meaning they use the same packaging throughout the entire production chain until it reaches the hands of you, the shopper.

It's a bold step into the future of fashion, and one that MCQ hopes to pioneer. MCQ's first official icon releases September 3rd, so stay tuned for more info and get a sneak peek at a few of our favorite pieces from upcoming drops.

3D Animation:Charlie Soffe & Luke Johnson

Not always there when you call, but I'm always online.

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Alexander McQueen Launches MCQ, A Blockchain-Powered Creative Platform

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When you think of the great fashion houses of our past, they're almost always attached to brilliant designers and creative directors who took the brand to new heights. But what if there existed a label that didn't have a creative head at all, and instead ceded creative control to a rotating cast of collaborators?

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Clean new looking store, fits in with the proposed design of our concept store. Contemporary feel aligns with the brand identity of those involved with our pop up events. white walls almost feels like a blank canvas, ties in with our art exhibition idea.

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Shows member of staff helping out customer. Key to our concept is having staff from the Porter Group as well as the brands. This gives full coverage of brand knowledge and well as the Porter Group's values. Some of these images do have staff & customers in them but wanted one that showed staff helping customers, as our staff will help to educate consumers on brand values etc.

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This quote talks about how retail stores need to be more than just a place to buy product. Our concept is an example of this, with an art gallery feel and almost an education centre for the brands involved. 'Instagramable' experiences will be throughout the store, giving it a social feel also. With this image there wasnt a selection to choose from, as i found it on my Instagram feed and thought it would tie in with our concept store.

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Instagram logo shows which will be our main platform for the social media campaign. The phone contains a 'mock up' of what our instagram page will look like. Very minimal in line with the store design, as well as dates for when each brand comes into the store, creating anticipation. With these images, the instagram page was made by one of the other group members, therefore i did not choose which pictures to put on the page. Also, the instagram logo is the same all round.

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For future improvements we said about how we would incorporate QR codes into the store, so customers can learn about the product and see whether it's in stock. Using the codes adds to the fact we have thought about how to take our concept further. The image of the codes used is a cartoon, so feels less daunting as a future idea. some of the other images were almost chosen, but they were a bit 'hard' or said 'styling tips' which isnt what our codes will be used for.

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Blockchain success starts here

Now in its 3rd edition, IBM's Blockchain for Dummies has introduced blockchain to more than 68,000 readers.

What's inside:

Grasping blockchain fundamentals

How blockchain works

Blockchain in action: use cases

Hyperledger, hosted by the Linux Foundation

Ten steps to your first blockchain application

Blockchain overview

Blockchain defined: Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.

Why blockchain is important: Business runs on information. The faster it's received and the more accurate it is, the better. Blockchain is ideal for delivering that information because it provides immediate, shared and completely transparent information stored on an immutable ledger that can be accessed only by permissioned network members. A blockchain network can track orders, payments, accounts, production and much more. And because members share a single view of the truth, you can see all details of a transaction end-to-end, giving you greater confidence, as well as new efficiencies and opportunities.

Benefits of blockchain

What needs to change: Operations often waste effort on duplicate record keeping and third-party validations. Record-keeping systems can be vulnerable to fraud and cyberattacks. Limited transparency can slow data verification. And with the arrival of IoT, transaction volumes have exploded. All of this slows business, drains the bottom line - and means we need a better way. Enter blockchain.

Blockchain 101 in five minutes

Understanding the basics of blockchain technology can be challenging. But our friends at IBM Food Trust™ - the blockchain network that's building a safer, smarter food supply - make it easier with these short videos.

Types of blockchain networks

There are several ways to build a blockchain network. They can be public, private, permissioned, or built by a consortium.

Permissioned blockchain networks

Businesses who set up a private blockchain will generally set up a permissioned blockchain network. It is important to note that public blockchain networks can also be a permissioned. This places restrictions on who is allowed to participate in the network and in certain transactions. Participants need to obtain an invitation or permission to join.

Blockchain security

Risk management systems for blockchain networks

When building an enterprise blockchain application, it's important to have a comprehensive security strategy that uses cybersecurity frameworks, assurance services and best practices to reduce risks against attacks and fraud.

Blockchain explained through art

We asked five artists - all new to blockchain - to create art about its key benefits. See what they made, then learn more from IBM clients and business partners in Blockp art y, our new webinar series.

Blockchain for industries

Industry leaders are using IBM Blockchain to remove friction, build trust and unlock new value. Select your segment to see how.

Go even deeper with IBM insights

The IBM Institute for Business Value produces some of the world's most-read blockchain thought leadership reports. Continue your blockchain education with their latest perspectives.

Blockchain FAQ

What's the difference between blockchain and Bitcoin?

Bitcoin is an unregulated, digital currency. Bitcoin uses blockchain technology as its transaction ledger.

This video illustrates the distinction between the two.

How are the IBM Blockchain Platform and Hyperledger related?

The IBM Blockchain Platform is powered by Hyperledger technology.

This blockchain solution can help turn any developer into a blockchain developer.

Visit the Hyperledger website for details.

What are smart contracts?

Smart contracts are an integral part of blockchain technology. They automatically execute transactions and record information onto the ledger without human intervention.

Conditions of smart contracts are mutually agreed on by network members. They're a key component for establishing trust and efficiency between parties.

Smart contracts eliminate essentially all the paperwork, streamlining the entire process and saving time and money.

To help you learn more about smart contracts, Nigel Gopie, PhD, the IBM Food Trust Global Marketing Leader - IBM Blockchain, has written a blog post that explains smart contracts in more detail.

How can blockchain impact an entire industry?

Blockchain enables businesses to rethink the way they work.

In the diamond industry, for example, each party can access:

High-resolution photos

Immutable payment records

Certificates of authenticity and more.

Can I deploy on any cloud I want?

IBM Blockchain Platform software is optimized to deploy on Red Hat® OpenShift®, Red Hat's state-of-the-art enterprise Kubernetes platform.

This means you have more flexibility when choosing where to deploy your blockchain network components, whether on-premises, in public clouds, or in hybrid cloud architectures.

What can we solve together?

Discover how clients around the world are using IBM Blockchain to transform business now.

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What is Blockchain Technology? - IBM Blockchain

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Learn the basics of blockchain technology to discover why businesses worldwide are adopting it. Your understanding of blockchain for business starts here.

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MILAN, ITALY - JANUARY 13: A model walks the runway at the Giorgio Armani Fall/Winter 2020-2021 ... [+]
Gamma-Rapho via Getty Images

After COVID -19 restructuring plans, fashion brands are increasingly aware about the importance of complex global supply chains and environmentally friendly materials being used for production. From development to production, the fashion industry leaders want to make the brands transparent by using blockchain to digitize the supply chain - so much so that it will help fashion companies track apparel production from raw materials to the finished goods.

I recently attended a fashion and related industries blockchain seminar where I noticed that an abundant number of top priority brands and journalists alike, more inquisitive and enthusiastic than before. Brands surveyed at the seminar about sourcing sustainable materials cited how they wanted to create transparency in their respective supply chains, but failed to achieve those goals in full.

Nowadays, there seems to be a heightened sense of urgency to drive sustainability as the core value of the business. But the fashion business works differently than other industry segmentations. In a word, fashion is a fragmented business. In fact, a single item can source materials from various countries to make it complete. Moreover, the raw materials and manufacturing stages are more the often abundant.

Alas, the fashion and style sector is steadily making progress, and this progress is in thanks to technology. Although fashion and technology may seem different, they work well together. With blockchain, the fashion and style industry can explore its potential. While blockchain is known for financial services, it has been helping the fashion and style industry to tackle the counterfeiting problem. On the other hand, digital content like social media has helped the fashion and style industry in many ways. Like other sectors, the fashion and style industry is entwined with social media.

Today, with over 50% of the world's population using social media, it has become a an expert tool by connecting brands directly with consumers.

Fashion and Blockchain can prove to be very useful. In addition, it allows forthright brands to tell their story. Typically, the fashion and style industry involves a rather complicated supply chain at both global and local levels. Because of the complexity of their supply chain, blockchain is what the industry needs to further develop. In fact, some blockchain characteristics such as consensus, decentralization, and immutability make it perfect for adding more trust and security to the fashion industry.

Given the transparency of blockchain technology, the supply chain of fashion brands have guaranteed full disclosure.

One of the greatest challenges within the fashion industry to date is the billion dollar counterfeiting business. There is no doubt in my mind that counterfeit products can taint the value and overall image of fashion brands. This is where it gets interesting. Blockchain can help fashion brands secure their digital identity. Here are some ways blockchain can help the fashion industry...

PARIS, FRANCE - OCTOBER 06: A model walks the runway during the Chanel Womenswear Spring/Summer 2021 ... [+]
Corbis via Getty Images

Reduction of Counterfeit Products: Items registered on the blockchain, will make counterfeiting almost impossible to move forward. However, there is speculation that a fake product may be registered early during the process of the supply chain. If an original item were swapped with a fake one during the distribution process, the blockchain records would help ascertain where the counterfeit products are coming from and being produced.

One company, dapis.tech, is thinking outside the box when it comes to blockchain. Blockchain has been largely out of reach for most brands, because it has required engineering knowledge and skills. Without access to a specialized developer, most brands haven't been able to take advantage of all that blockchain has to offer. That is the critical issue Dapis has set out to solve. Dapis provides a scalable read-write solution that literally gives fashion brands the ability to build blockchain apps without having to know how to write blockchain code.

This essentially unlocks an enormous asset. Blockchain technology can be used to build enhanced and lightning fast solutions for all kinds of issues that imperil profit for fashion and style brands, specifically as they relate to the production of counterfeit items. The experts at Dapis understand "that the blockchain tools of the future will provide more data, solve problems, and be more usefully complex."

Dapis.tech co-founder Calvin Pak explains, "There were many projects in the beginning trying to tackle this space. It is a tough problem to solve. The early solutions are too complicated in a lot of ways. We make it a one endpoint where any engineer with a little experience can access it without knowing what's happening behind."

Earlier this year, about 15 million euros was budgeted by the Italian government for investing in blockchain technology. This amount was set aside just to reduce the amount of counterfeit "Made in Italy" produced. As of 2016, phony "made in Italy" products cost the economy a whopping 12.4 billion euros. If blockchain is introduced, artists, local businesses, and creators alike can make a living out of selling made in Italy products desired worldwide.

Transparency Whether large or small, blockchain technology is a game-changer for both. Fashion brands can experience full transparency of their goods that were bought or imported. This transparency extends to both goods that were both for immediate or later sale.

Furthermore, the companies have transparency of the materials' authenticity, how the goods are distributed from their manufacturing site to the wholesalers, even down to the distributors and the retailers. Interestingly, with blockchain technology, the fashion company can record the person who purchased their product. Companies such as Bitcompare that are on a mission to make blockchain accessible to everyone ensure that customers make the right and safe financial decisions using blockchain.

One fashion brand that has taken a step to use blockchain technology is Burberry. Early this year, Burberry asked IBM interns to create a prototype blockchain-based protocol. IBM is a top brand with its manual on Manualsbrain, a site that helps you find thousands of different user guides to almost any home appliances from the most popular world-leading companies.

This prototype developed by IBM will allow all Burberry customers to know essential things about the item and register the purchased item. Customers can view the items' history and their human and environmental impact.

The Fashion Industry and Digital Content Social media platforms like TikTok and Instagram have become super important to fashion brands regarding marketing their new items. There are indeed over three billion social media users with an average of 8 accounts per user. Daily, a social media user spends about 142 minutes on social media. This is enough time for fashion brands to capture the hearts of these users and make their brands known.

PARIS, FRANCE - JANUARY 20: In this images relesead juanuary 21, model (detail) walks the runway ... [+]
WireImage

As the years roll by, the influence of social media in fashion skyrockets making social media a valuable tool. As the world will see more social media users in upcoming years, fashion brands must harness the powers that social media wields. Doing this will help fashion brands to stay financially successful and competitive. Here are some of the benefits of social media to the fashion and style industry

Close the Gap Between Brand Owners and Customers Social media has helped brand owners to bridge the gap between them and their customers. Brands that actively use social media seize the opportunity to engage with their customers by hosting giveaways and responding to posts' comments.

Additionally, fashion brands use social media as a means of getting feedback from their customers. They can ask their customers about ways to improve and what other items they will like to purchase.

Create Targeted Ads and Increase Traffic Fashion brands can create ads with the target audience in mind using social media. They can do this via internet cookies that advertisers can track. These cookies are then used to send advertisements to selected individuals who are potential customers. In addition to this, fashion brands can increase traffic through paid ads.

With exciting and engaging content on social media platforms, fashion brands can reach a wide range of audiences, increasing traffic on their site. Also, they can partner with social media influencers as well as celebrities to increase their sales.

Other ways digital content helps the fashion industry are

By increasing awareness

Cultivating brand image

Communicating new products

Promoting exquisite painting and art items
In the world of luxury - love for tastefully curated art pieces and elevated concepts are propelling personalities behind platforms like TR Lab to showcase a new medium of art for the world to appreciate.

Ms. Xin Li-Cohen, the brains behind TR Lab is a special advisor to Mr. François Pinault and Non-Executive Deputy Chairman at Christie's.

In April, Li-Cohen co-founded TR Lab, a platform for the curation, discovery, and collecting of fine art NFTs by internationally renowned artists. TR Lab also offers end-to-end service for both artists and collectors to engage with NFT art from digital production to direct issuance.

TR Lab plans to exhibit and auction its first art piece soon for lovers of art, especially NFT art by some of the world's leading artists.

Wrapping Up Social media and blockchain are two powerful tools that fashion brands can harness to bring about growth. The benefits of blockchain technology can help fashion brands reduce losses as a result of counterfeit products. With transparency as blockchain's significant benefit, fashion brands can monitor and manage their supply chain.

Conclusively, with digital content, fashion brands can expand their reach using targeted ads. Speaking with Jae Park, a self-made millionaire at 23 and owner of Fnatic Media, a digital marketing company, he said you can have the most significant marketing budget on ads. Still, if you show your product to the wrong audience, you are just wasting your time and money.

Fashion brands leveraging digital tools like social media and high-tech like blockchain will soon figure out the immense benefits of giving into tech to promote their brands. Additionally, they will see how blockchain and digital content improve their business and promote the right content, to the right people, at the right time. In a world with so much technological advancement, there is no limit to growth.

... Read More

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From Blockchain To Content, New Industries Will Lead The Fashion And Style Sector

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After COVID -19 restructuring plans, fashion brands are increasingly aware about the importance of complex global supply chains and environmentally friendly materials being used for production. From development to production, the fashion industry leaders want to make the brands transparent by using blockchain to digitize the supply chain - so much so that it will help fashion companies track apparel production from raw materials to the finished goods.

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What is decentralization?

In blockchain, decentralization refers to the transfer of control and decision-making from a centralized entity (individual, organization, or group thereof) to a distributed network. Decentralized networks strive to reduce the level of trust that participants must place in one another, and deter their ability to exert authority or control over one another in ways that degrade the functionality of the network.

Why decentralization matters

Decentralization is not a new concept. When building a technology solution, three primary network architectures are typically considered: centralized, distributed, and decentralized. While blockchain technologies often make use of decentralized networks, a blockchain application itself cannot be categorized simply as being decentralized or not. Rather, decentralization is a sliding scale and should be applied to all aspects of a blockchain application. By decentralizing the management of and access to resources in an application, greater and fairer service can be achieved. Decentralization typically has some tradeoffs such as lower transaction throughput, but ideally, the tradeoffs are worth the improved stability and service levels they produce.

Benefits of decentralization

Provides a trustless environment

In a decentralized blockchain network, no one has to know or trust anyone else. Each member in the network has a copy of the exact same data in the form of a distributed ledger. If a member's ledger is altered or corrupted in any way, it will be rejected by the majority of the members in the network.

Improves data reconciliation

Companies often exchange data with their partners. This data, in turn, is typically transformed and stored in each party's data silos, only to resurface when it needs to be passed downstream. Each time the data is transformed, it opens up opportunities for data loss or incorrect data to enter the workstream. By having a decentralized data store, every entity has access to a real-time, shared view of the data.

Reduces points of weakness

Decentralization can reduce points of weakness in systems where there may be too much reliance on specific actors. These weak points could lead to systemic failures, including failure to provide promised services or inefficient service due to the exhaustion of resources, periodic outages, bottlenecks, lack of sufficient incentives for good service, or corruption.

Optimizes resource distribution

Decentralization can also help optimize the distribution of resources so that promised services are provided with better performance and consistency, as well as a reduced likelihood of catastrophic failure.

How decentralization compares

Decentralization should be applied where it makes sense. Just because it's a blockchain application doesn't mean it needs to be 100% decentralized. The goal of any blockchain solution is to deliver what the users of that solution need, and this may or may not include certain levels of decentralization. To better understand decentralized networks, the table below breaks out how decentralized networks compare to the more common centralized and distributed networks.

Each network architecture has its benefits and tradeoffs. For example, decentralized blockchain systems, unlike distributed systems, typically prioritize security over performance. So, when a blockchain network scales up or out, the network becomes more secure, but performance slows down because each member node must validate all data being added to the ledger. Adding members to a decentralized network can make it safer, but not necessarily faster.

Who is building blockchain applications leveraging decentralization

Every blockchain protocol, decentralized Application (dApp), Decentralized Autonomous Organization (DAO), or other blockchain-related solution adopts varying levels of decentralization. The adoption level is typically based on the maturity of the solution, the time-proven reliability of its incentive models and consensus mechanisms, and the ability of the founding team to strike the right balance. For example, many DAOs have various components at different stages of decentralization: oracles (i.e., third-party services that provide smart contracts with external information) may be partly decentralized, smart contracts might be fully centralized, while the governance process for adjusting parameters is community-driven and decentralized.

On a broader scale, decentralized blockchain solutions are being explored and adopted by organizations of every type, size, and industry. Some notable examples include applications that provide immediate foreign or emergency aid to those who need it most, without the mediation of a bank, government or third-party entity. Or applications that give people the ability to manage their own digital identities and data. Today, social media platforms, companies, and other organizations sell this information without the individual seeing any benefit. A decentralized approach would help make it equitable for all.

A real-world example

Contura Energy, a leading U.S.-based coal supplier, has depended on an outdated letters of credit system to manage its international trade payments. These letters of credit, issued by an intermediary bank on behalf of its client, serve as a guarantee of payment for buyers. While this system is trustworthy, it's also manually driven, slow, and highly inefficient.

Contura Energy understands the importance and value of digitizing and automating their letters of credit process. The challenge they face, however, is enabling mutual trust and verification between sellers and buyers. They are working with AWS on a decentralized, blockchain-based innovation that provides a more efficient, cost saving, and less risky system to manage international trade payments. This decentralized solution also increases transparency, giving all parties real-time visibility into the data and documentation.

Learn more about how Contura Energy is using decentralized blockchain technology to upgrade their letters of credit system for international trade.

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In blockchain, decentralization refers to the transfer of control and decision-making from a centralized entity (individual, organization, or group thereof) to a distributed network. Decentralized networks strive to reduce the level of trust that participants must place in one another, and deter their ability to exert authority or control over one another in ways that degrade the functionality of the network.

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A blockchain is a public digital ledger of transactions that records information in a way that makes it difficult to hack or alter. The technology allows a secure way for individuals to deal directly with each other, without an intermediary like a government, bank or other third party.

The growing list of records, called blocks, is linked together using cryptography. Each transaction is independently verified by peer-to-peer computer networks, time-stamped and added to a growing chain of data. Once recorded, the data cannot be altered.

While popularized with the growing use of bitcoin, ethereum and other cryptocurrencies , blockchain technology has promising applications for legal contracts, property sales, medical records and any other industry that needs to authorize and record a series of actions or transactions.

How does blockchain work?

Using the system as an example, here's how blockchain - also known as distributed ledger technology - works:

The concept of blockchain technology first appeared in academic papers dating back to 1982, in a dissertation discussing "the design of a distributed computer system that can be established, maintained, and trusted by mutually suspicious groups." But it was a 2008 paper by the pseudonymous Satoshi Nakamoto titled "Bitcoin: A Peer-to-Peer Electronic Cash System" that brought an academic theory into real-world use.

Pros and cons of blockchain technology

Using bitcoin as an example, here are some of the pros and cons of blockchain technology when applied to cryptocurrencies:

While the U.S. dollar is issued by the Federal Reserve, no government agency issues or controls bitcoin and other cryptocurrencies. This also means that the ability of any one government or agency to determine the fate of a public blockchain is eliminated. The lack of intermediaries reduces cost, as the fees associated with third-party transactions also are eliminated. Another byproduct of decentralization is time efficiency - the blockchain is open for business 24 hours a day, 365 days a year, unlike banks and other intermediaries.

Transparency plus anonymity

All transactions on the Bitcoin blockchain are recorded on all computers on the network. Transactions are completely transparent because the address and transaction history of Bitcoin wallets , which hold the cryptocurrency, are publicly viewable, but the owners of each wallet connected to those public addresses are anonymous and not recorded.

Because the transaction involves little human interaction, there is a lower risk of error. As each transaction must be confirmed by a majority of the network nodes and recorded across the entire blockchain, the possibility that the information can be manipulated or altered is eliminated. This also prevents counterfeiting (also known as the "double-spending" problem).

Blockchain applications beyond cryptocurrencies

Blockchain technology creates efficiencies that potentially extend far beyond digital currencies. While cryptocurrencies like bitcoin are on a public blockchain, many applications for business can be created on private blockchain networks:

Opportunities for the underbanked

In countries and regions with poor or corrupt financial institutions, cryptocurrencies based on blockchain protocol allow the transfer and holding of cash that bypasses unscrupulous third parties.

Like a lot of new technologies, some of the first adopters have been criminal enterprises. They use cryptocurrencies like bitcoin both as payment because of the privacy it provides and to target holders of bitcoin for scams. For example, bitcoin was used by consumers of Silk Road, a black market online shopping network for illegal drugs and other illicit services that was shut down by the FBI in 2013. In the recent ransomware attack on Colonial Pipeline, the company paid $4.4 million in cryptocurrency to unlock its computer systems.

Meanwhile, bitcoin investment scams have skyrocketed in tandem with its recent historic rise. The Federal Trade Commission reported nearly 7,000 people lost $80 million from October 2020 through March 2021 in schemes touting quick returns, a nearly 1,000% rise in reported losses year-on-year.

Blockchain cryptocurrencies are highly volatile

The popularity of cryptocurrency exploded in 2021, as bitcoin hit a record spot price of nearly $65,000 in April. But owing to its inherent volatility, the price of bitcoin dropped nearly 50% by early June. Bitcoin recorded a previous record high of nearly $20,000 in December 2017, but by December 2018, it was trading below $3,500.

Crypto use is still niche

Many more exchanges, brokerages and payment apps now sell bitcoin, and many companies such as PayPal and Microsoft accept bitcoin for payment. Still, purchases with blockchain currencies like bitcoin remain the exception, not the rule. Also, the sale of bitcoin for purchases on cash apps such as PayPal requires users to pay capital gains taxes on the bitcoin sold, beyond whatever state and local taxes are paid on the product or service.

Environmental impact in question

The process of bitcoin mining uses a network of high-speed computers that consume a lot of energy. If the Bitcoin system were a country, it would be the 34th biggest consumer of electricity, behind the Netherlands and ahead of the Philippines, according to the University of Cambridge Electricity Consumption Index. Tesla CEO Elon Musk announced in May that the carmaker would no longer accept bitcoin until the cryptocurrency can find ways to reduce its carbon footprint.

Bitcoin blockchain is slow

The Bitcoin blockchain can process about seven new transactions a second. By comparison, credit card giant Visa can process 24,000 transactions per second, according to the company. That presents the Bitcoin system with a scalability problem. Other forms of blockchain-based cryptocurrency are working on this problem. An eagerly anticipated upgrade of the Ethereum system, known as Ethereum 2.0, is expected to be capable of handling 10,000 transactions per second, up from its current rate of 30 per second.

The future of blockchain technology

While the Bitcoin system is the best-known application of blockchain technology, there are thousands of cryptocurrencies that are built on the back of this emerging technology. While it remains to be seen if Bitcoin will succeed in supplanting other forms of traditional payment methods, the applications of blockchain technology are growing fast, and proponents say they may lead to dramatic changes across industries.

What online brokers offer cryptocurrency?

Of the online brokerages and cryptocurrency exchanges that NerdWallet reviews, the following currently offer bitcoin.

Disclosure: The author held no positions in the aforementioned securities at the original time of publication.

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What Is Blockchain and How Does It Work? - NerdWallet

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A blockchain is a public digital ledger of transactions that records information in a way that makes it difficult to hack or alter. The technology allows a secure way for individuals to deal directly with each other, without an intermediary like a government, bank or other third party.

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Blockchain is one of the fastest-growing sectors in tech, and the fashion industry is taking note.

Investment in blockchain startups has increased at a compound annual growth rate of 90 per cent over the past five years, according to Nathan Pacer, co-founder and chief research officer of research firm Venture Scanner. "At its core, blockchain is all about proof of exclusivity and anti-counterfeiting - areas that are important to fashion. Blockchain is still a relatively young technology, but it is showing signs of traction."

"In fashion, authenticity is important, limited edition is important, being the first to wear or discover something is important - and it's impossible to prove the authenticity of a digital thing without blockchain," adds Roham Gharegozlou, CEO of Vancouver-based Dapper Labs, which created the $140,000 CryptoKitty.

Here are six ways luxury companies are already using blockchain.

Track diamonds even after they've been cut

This month, San Francisco jeweller Brilliant Earth will introduce blockchain-integrated diamonds through a partnership with London-based Everledger, which has created a unique digital record of more than 2.2 million diamonds.

By registering a diamond's unique markings, Everledger tracks and permanently records every step in a gem's lifecycle. This includes location origin, rough carat weight, customer ownership and videos of the rough diamond, all accessible through Brilliant Earth's website. Brilliant Earth's co-CEO Beth Gerstein says that this appeals directly to millennial and Gen Z customers who want to purchase socially conscious products and engage with cutting-edge technology.

Brands who already use Everledger's platform have observed "material" increases in both the value of the diamond customers are willing to buy online and how quickly they buy them, says Everledger head of commercials Evgeny Gokhberg.

Prove authenticity

Similarly, Paris-based non-profit Arianee has developed a blockchain-based protocol that creates a digital identity for valuable goods, such as bags, sneakers and watches. Advisors include execs from Richemont International and Balenciaga. Its first projects include verifying vintage timepieces for a leading watchmaker, which will debut 1 June, as well as a proof-of-concept for a high-end sneaker brand.

The digital identity is like a passport that assures the authenticity of both new and vintage goods and records information such as transfers of ownership or when the item is serviced. Depending on the brand, the passport can be linked to the item through serial number, chip or QR code, accessible through an app.

As this process becomes standard, it will be challenging to sell fakes at scale, explains Arianee co-founder and CEO Pierre Nicolas Hurstel. "You can always create a fake, but if you are not able to generate the digital certificate, no second-hand platform will list it," he says. In future, the Arianee protocol can add new features, such as the ability to declare an item lost or stolen, which could make it difficult to cross borders with stolen goods.

Communicate with customers after a sale

Arianee's platform also allows the digital passport to act as a customer service channel. The brand and the customer can communicate while allowing the owner to remain anonymous - even if the object changes hands. In this way, a brand could share information or the customer could submit a customer service request, which would be documented on the item's record.

To participate in the Arianee consortium, a brand must apply to become a member. Costs depend on the size of the company; the price of issuing an individual certificate is 10 cents (USD), and customer messages are 15 cents each.

Record and share supply chain information

Seattle-based Fuchsia uses blockchain platform Provenance to share details about the workers who hand-make the brand's shoes in Pakistan. Six months after adding the information to its e-commerce product pages, the company saw a 31 per cent increase in online conversions and a 45 per cent boost in engagement.

Additional Provenance clients include knitwear designer Martine Jarlgaard, whose smart labels trace garment timelines back to the alpaca farm, and vegan accessories brand Mashu, which shares details on its bags' Greek origins via in-store QR tags.

Provenance clients tend to be fast-growing, direct-to-consumer brands, and they often have sustainability and transparency built into their DNA, says Provenance founder Jessi Baker. "As that happens more, it will be vital that [supply chain information] is calibrated, stored and measured in a way that everyone can trust, and the use of blockchain tech to be that single source of truth will be vital if brands are starting to compete on impact," she says.

Evaluate worker welfare

In April, Levi Strauss & Co began testing a worker well-being survey that records factory employees' answers anonymously on a blockchain platform, starting with a Mexico vendor that employs 4,000. In a post on the company's blog, Levi Strauss Foundation 's Kim Almeida said that because some employees might be hesitant to share personal health details and speak out about direct managers, the anonymity of blockchain is "critical".

The company is already seeing benefits in terms of how quickly it can collect feedback and share results, which show on screens on the factory floor. The results from one survey were processed within 48 hours of its completion, and three other sets of responses were processed in less than a week.

"This is the first time ever in my 30 years of researching work and health that the workers were the first to see the results of the survey and not management," says Eileen McNeely, director of SHINE at the Harvard T.H. Chan School of Public Health, which worked on the project. "This is groundbreaking transparency."

Transfer ownership of digital clothing

On 11 May, Dapper Labs auctioned off a one-of-a-kind digital garment at New York's Ethereal Summit, designed by Dutch digital fashion studio The Fabricant. The winning bid was $9,500, and the winner will have the option to be digitally fitted in the garment. (Last year's auction - the Cryptokitty - garnered $140,000.)

Ownership of the garment is transferred through blockchain, making the digital design impossible to counterfeit. "Blockchain allows us to create digital one-offs," says The Fabricant founder Kerry Murphy. "It's a way to create uniqueness and desirability."

"The further I delve into blockchain, the crazier it gets," he continues. "When the internet first started, we also couldn't foresee all the things it would supply us. Then you see it adding value to people's lives, and it isn't an abstract concept anymore."
A previous version of this article stated that Levi Strauss & Co began testing its worker well-being survey in January. The article has since been updated. 14 May, 2019.
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Blockchain is one of the fastest-growing sectors in tech, and the fashion industry is taking note. Investment in blockchain startups has increased at a compound annual growth rate of 90 per cent over the past five years, according to Nathan Pacer, co-founder and chief research officer of research firm Venture Scanner.

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how blockchain could make fashion more sustainable - cnn

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How blockchain could make fashion greener

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How Hong Kong, India-based TextileGenesis believes blockchain could make fashion more sustainable.

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Does 'Made in' matter?

Labelling specifying the country in which a good was produced has long been a marker of quality. The ateliers of France, leather workers of Italy and watchmakers of Switzerland have built global reputations for their exacting standards. Today, 'Made in' labelling is also an indicator of the regulations and health, safety and wage standards under which a good was produced.

But in a world with increasingly complex supply chains that can span several countries, a jacket sold by a European brand can be manufactured in a cheap and relatively unregulated labour market like China, but finished and packaged in France or Italy, thereby earning a 'Made in France' or 'Made in Italy' label. Indeed, according to European Union regulations, companies need only spend a certain amount manufacturing a good in a certain country in order to qualify for local 'made in' labelling.

At the same time, powerful alternative labelling systems, like Fairtrade and Certified Organic, have emerged, offering companies new tools for communicating manufacturing standards to consumers, who are increasingly concerned with the provenance of their goods. Does 'Made in' still matter?

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Op-Ed | Blockchain Can Bring Transparency to Supply Chains

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Labelling specifying the country in which a good was produced has long been a marker of quality. The ateliers of France, leather workers of Italy and watchmakers of Switzerland have built global reputations for their exacting standards. Today, 'Made in' labelling is also an indicator of the regulations and health, safety and wage standards under which a good was produced.

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PARIS, France - Luxury brands were notoriously late to embrace e-commerce and social media. But some of the industry's biggest players are determined to be ahead of the curve on blockchain.

LVMH, the world's largest luxury conglomerate, is planning to use the technology to track luxury goods and prove their authenticity, blockchain news site CoinDesk reported last week. The platform, dubbed "Aura," is expected to go live as soon as May with Louis Vuitton and Parfums Christian Dior, before being extended to the group's other brands and competitors.

Meanwhile, Paris-based non-profit Arianee, which boasts advisors from LVMH rivals Richemont and Kering, is preparing to launch a similar database collectively managed by participating brands. Pilots are planned for later this quarter.

Arianee and LVMH are addressing the same problem: how to safeguard the authenticity of luxury goods in a market flooded with strikingly similar fakes. The global market for knock-offs is booming, with various estimates totalling annual sales of fakes in the hundreds of billions of dollars. The rise of online resale sites is creating a new market for counterfeits that has resisted traditional methods of policing.

Blockchain is the catch-all term for technology that permanently records transactions in a digital, tamper-proof database. Information is distributed across a network of computers rather than being controlled by a single entity, and is accessible to anyone in the network, but cannot be altered or deleted.

Blockchain's highest-profile use is to enable Bitcoin and other crypto-currencies, but the technology is beginning to take hold in the global supply chains of large companies. Walmart will soon require suppliers of leafy greens to put their produce on the blockchain, making it easier to trace tainted vegetables back to their source.

What the blockchain can do is form a database that many companies agree with the results of.

In the opaque, highly competitive world of luxury fashion, blockchain's main role is to connect brands and retailers that normally wouldn't share information with rivals. For example, consignment sellers and even individual consumers could verify an item's authenticity by comparing its digital signature to entries in a decentralised database. Brands could similarly track materials to ensure they were produced by ethical manufacturers.

"Many people apply blockchain to a project that a database could be used to do," said Ken Seiff, venture capitalist and managing partner at Blockchange Ventures. "What the blockchain can do is form a database that many companies agree with the results of."

In the diamond industry, big brands like De Beers and smaller start-ups like Taylor & Hart use blockchain to help trace their supply chains from mine to shop floor. De Beers led an industry effort, along with five other diamond manufacturers, to develop an open-source blockchain platform called Tracr, announced in May last year.

Taylor & Hart partnered with blockchain start-up Everledger. Currently, the jeweller is using the technology to authenticate the provenance of its diamonds. Chief executive Nikolay Piriankov said he hopes to introduce a "blockchain wallet," where customers could keep appraisals of their jewellery. An easily accessed, un-forgeable appraisal would help with insurance proceedings, and give customers a greater sense of ownership for custom-made designs.

Blockchain is kind of a buzzword, most people use it without exactly knowing what's behind it.

Of course, a database is only as good as the information entered into it. A blockchain ledger won't prevent a wholesaler from creating an entry for a counterfeit handbag, or a supplier of exotic skins falsely claiming to have sourced from ethical farms, or a brand's warehouse manager from mistakenly listing 500 dresses instead of 50. And once in the blockchain, those lies and errors can't be altered or removed.

LVMH's use of blockchain to ensure its products' authenticity partially side-steps that issue. Consumers and secondhand retailers would have little reason to doubt that each Louis Vuitton shoe or bag entered into LVMH's database is authentic. However, trusting the brand's third-party suppliers to accurately catalogue raw materials requires a greater leap of faith.

The company may also struggle to bring rivals on board. Though the data collected can't be altered, LVMH would retain ultimate control over the technology itself, potentially dictating what would be tracked.

LVMH declined to comment.

IBM launched a similar service to track shipping containers with A.P. Møller Maersk, the world's biggest shipping line, as its partner. Other freight movers have been slow to sign on, however.

"Most clients didn't want to jump on a platform because they felt IBM was going to be the one to dictate where the platform was going to move and what they logged onto the platform," said Steven Zheng, head of research at The Block, a blockchain news site. "You're basically removing the main selling point of a blockchain system of it being fully decentralised if you're a centralised company managing the blockchain system."

The real disruption is actually not the technology itself, but the decentralisation of the governance.

Vestiaire Collective, an online luxury consignment retailer, came up against this issue when it explored incorporating blockchain. The company decided not to move forward just yet, in part because of the difficulty involved in getting brands to coordinate and share data.

"We need the brands to evolve in order to build synergy in the way they work and expand data sharing," chief executive Max Bittner said. "More recently we're seeing that more brands are realising this, which opens up a possibility for the future."

Paris-based Arianee is working on a digital product certification that would be jointly governed by the brands that sign on. The organisation is still in its infancy, but says it is in talks with big luxury brands and conglomerates. The organisation's advisory board includes executives from Vacheron Constantin, a Richemont-owned watchmaker, as well as Balenciaga and the brand's parent, Kering. Arianee's first pilot projects are expected to roll out this quarter.

"Blockchain is kind of a buzzword, most people use it without exactly knowing what's behind it," said Pierre Nicolas Hurstel, chief executive and co-founder of Arianee. "The real disruption that comes with this technology is actually not the technology itself, but the decentralisation of the governance."

Though some recent uses of blockchain may not pan out, the flurry of experimentation is important, Blockchange's Seiff said.

"It's just like in the early days of the internet ... you didn't understand it, and it was growing and transforming the world," he said. "The act of simply dabbling ... is a stepping stone by which companies can begin to understand the transformative nature of this technology, and not get left behind."
Disclosure: LVMH is part of a group of investors who, together, hold a minority interest in The Business of Fashion The Opportunity in Digital Fashion and Avatars Report - BoF Insights . All investors have signed shareholders' documentation guaranteeing BoF's complete editorial independence.

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BoF Insights' guide to digital assets in fashion, which examines the rise of the metaverse and underlying technological, social and consumer shifts, plus includes a playbook for how to seize the opportunity. To explore the full report click here.

The Opportunity in Digital Fashion and Avatars is the in-depth report published by BoF Insights, a new data and analysis think tank from The Business of Fashion arming business leaders with proprietary and data-driven research to navigate the fast-changing global fashion industry.

[ Blockchain Explained: Ken Seiff and Peter Smith ]

[ Op-Ed | Blockchains Could Upend the Fashion Business ]

[ Op-Ed | Blockchain Can Bring Transparency to Supply Chains ]

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How Luxury Fashion Learned to Love the Blockchain

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PARIS, France - Luxury brands were notoriously late to embrace e-commerce and social media. But some of the industry's biggest players are determined to be ahead of the curve on blockchain. LVMH, the world's largest luxury conglomerate, is planning to use the technology to track luxury goods and prove their authenticity, blockchain news site CoinDesk reported last week.

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Brands are exploring new ways to secure trust due to burgeoning consumer concerns regarding product authenticity and sustainability, and blockchain provides a way to convince consumers of the authenticity of their luxury and other products. This mitigates the risk of counterfeit products and boosts marketplaces for everything from car parts to gemstones.

This is of particular interest for luxury goods brands as they see blockchain as a way to add value to products and boost brand equity by ensuring authenticity, especially for pre-owned items. Recently, three major luxury brands in Louis Vuitton Moet Hennessy (LVMH), Prada and Cartier joined forces to create Aura, the first blockchain consortium focused on providing a platform for tracking product history and proof of the authenticity of luxury goods. Microsoft and the blockchain-native company ConsenSys are helping the luxury brands develop the technological infrastructure for the solution.

Fake goods are a trillion-dollar industry

Every industry rife with counterfeiting, from sports ticketing to drugs, is in a dire need of a secure and transparent ledger. The market for fake goods has boomed in recent years, with the global trade in counterfeits estimated to be a trillion-dollar industry. Luxury brands, where product authenticity is paramount, have been particularly affected by the surge in fake goods. The clientele for luxury products shows an above-average loyalty and an accompanying willingness to pay a premium for increased quality and status.

This is exactly what LVMH, Prada and Cartier hope to target with the Aura blockchain consortium. Providing authenticity and ownership of goods, accessing product history information and strengthening client relationship through enhanced transparency are its stated benefits of the consortium. As LVMH's Managing Director Toni Belloni put it: 'the Aura blockchain consortium is a great opportunity for our sector to strengthen our connection with customers by offering them simple solutions to get to know our products better.'

In October last year, GlobalData wrote an article saying the growing consumer awareness of blockchain will render it a 'feature' rather than a 'function' of luxury goods. Belloni highlighted exactly this fact for why he believes blockchain is the most suitable technology for addressing consumer concerns of authenticity within the luxury industry. While certificates of authenticity have long existed in the industry, the reputation of blockchain as a tamper-proof tool means that it is ideally placed to be widely accepted by highly conscious consumers.

Blockchain is a team sport

Blockchain consortia have become a low-risk way for enterprises to work together on blockchain technology. The value of blockchain lies in its participants and the extent to which they commit to the platform. Counterfeit products are an industry-wide problem and are, as such, best addressed using a unified approach to set an industry standard rather than have each brand develop their own disparate solution.

The platform provided by the Aura consortium is open to all luxury brands globally, regardless of the size of the company. However, it is a private permissioned blockchain, meaning participants are vetted and approved before they can join the network. It also means that the client data encrypted onto the blockchain will not be accessible by rivals.

Blockchain's core value proposition in vogue

While blockchain is associated with several characteristics like encryption and decentralisation, its core value proposition is firmly centred around trust, something that echoes well with the luxury industry. Belloni himself said: 'trust is the one key on which our industry is founded and one we really want to preserve,' adding that all consumers, but especially younger ones, are showing rising concerns about the issue.

The Aura consortium is a perfect example of how blockchain is evolving, from technology without a clear use case to one that provides tangible benefits for consumers and business alike. Aura will help the luxury industry tackle the trillion-dollar counterfeit goods market, which, in turn, will also help with luxury product returns and boost second-hand and auction sales.

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Luxury blockchain consortium to combat counterfeit products

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Brands are exploring new ways to secure trust due to burgeoning consumer concerns regarding product authenticity and sustainability, and blockchain provides a way to convince consumers of the authenticity of their luxury and other products. This mitigates the risk of counterfeit products and boosts marketplaces for everything from car parts to gemstones.

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What is Crypto Fashion? | Anthony Day, IBM

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Listen to this episode from Digital Fashion & Art on Spotify. Since Martine Jarlgaard first tracked the lifecycle of a garment in 2018, blockchain technology has grown in relevance. In this episode our guest Anthony Day explains crypto fashion and it's power to transform the fashion industry.

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MCQ are an industry leader when it comes to blockchain in fashion. I chose this image as it shows a digital twin of a real product the brand make. It cements what the article is about, the intertwining of fashion and digital tech. There are others in here including RFID tags and other product photos. As i used an RFID tage later in the article i didnt use it here.

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The first 5 images show how supply chains can be improved with blockchain. The next 3 offer two different views on it. The more circular ones are simple and easy to understand. The middle one features some writing to help understand further. The final image was chosen as it sums everything up quite nicely, with wording that doesnt take away from whats written in the section below it.

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8 Essential features of a magazine article

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Martine Jarlgaard were the first brand to create a fully traceable garment, so i chose this image for the future as it almost creates a full circle feeling. It shows the swing ticket, care label and website that the code takes you to and allows you to see every step taken to create that one garment. Other images here only feature one or two of these steps, i felt including all of them was really important

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This is a campaign photo from MCQ's Albion range. I chose it as I liked the setting of the picture, the vast nature in the background. I felt this tied in nicely with how beneficial blockchain can be for brands who want to become sustainable. I featured MCQ earlier in the article as they are taking full advantage of blockchain.