Can Blockchain Technology Make Fashion More Transparent? - Good On You
01 Apr

Can Blockchain Technology Make Fashion More Transparent?

At Good On You, we firmly believe in transparency. We think it is the first step towards accountability and making the fashion industry more ethical and sustainable.

But how did we come to this current state where we know nothing (looking at you, Jon Snow) or at least very little about how our clothes are made? When Fast Fashion started developing around the 1990s, the pressure for retailers to cut down prices for consumers and costs for the brands grew tremendously. Companies relocated their once-local factories abroad in search of lower labour costs, and cut corners to source and produce raw materials cheaply. This lead to vast, complex and opaque supply chains. In fact, the 2018 Ethical Fashion report revealed that 69% of the brands studied had traced the final stages of production, 18% had traced the inputs stage, and only a shocking 7% had traced their raw materials.

But this is the age of the internet, the age of information. People are demanding more transparency from their fashion brands, and new technologies and tools, like the Good On You app (and now web Directory), are helping people know more about how their clothes were made and which brands are ethical or not.

The technology that has been on everyone’s lips for the past few years is blockchain. You’ve no doubt heard of Bitcoin and other cryptocurrencies, but blockchain has many other uses – and its applications within the fashion industry are only starting to be researched.

So today we give you the lowdown about this mysterious technology.

First things first, what is blockchain technology?

Imagine a Google spreadsheet set on “view only”: it’s digital, it has information on it, it’s shared on different computers, everyone can access it, but no one can edit it. That’s blockchain.

The digital information is the “block”, the spreadsheet is the “chain”. When a piece of new information is added, it becomes linked to previous information, it becomes part of the chain, and every spreadsheet is updated. This system is what makes blockchain secure and transparent.

Blockchain is a digital decentralised, distributed and public ledger. Boom, there you have it! (This is a very condensed summary of how blockchain works, but if you’re interested, I recommend this fun video by WIRED).

Now you might be thinking “hold on, how does it help the fashion industry be more transparent?

Well, blockchain can be used to record different types of data: from transactions (which is useful for cryptocurrencies) to events (the execution of “smart” contracts for example) and information, without relying on a middleman or having to interact with other users.

The technology is already being used by the food industry to track shipments of products or verify their origins.

In the fashion industry, blockchain, when paired with tracking tags, can also trace products through the entire supply chain, from the raw material to the factory and even to the consumer.

This is an excellent tool for supply chain and inventory management, especially since the blockchain (so the record of all the information collected throughout an item’s journey) cannot be modified. This means it can improve traceability and transparency!

A couple of fashion brands have started experimenting with blockchain technology, such as Martine Jarlgaard, who produced a collection with smart labels in 2017, in collaboration with the blockchain company Provenance. When people scanned the tag, they were able to see every step in the production process in details: time stamps, the location of the factory and so on.

The same year BabyGhost partnered with VeChain and more recently, Martina Spetlova teamed up with Provenance to offer the same experience to their clients.

In December 2018, the agricultural blockchain startup Bext360 partnered with the C&A Foundation, Fashion for Good and the Organic Cotton Accelerator to experiment with a pilot that uses blockchain to trace organic cotton.

But that’s not all, blockchain can also help designers protect their intellectual property. Because their products can be traced, it becomes easy for consumers and retailers to verify their authenticity, reducing the risk of counterfeiting.

Blockchain also improves brand’s storytelling: like Martine Jarlgaard, BabyGhost and Martina Spetlova did. Brands using blockchain are be able to tell the story of their collections, documenting every step of the design process. As a result, consumers can know (and trust) where their clothes come from, make sure the ethical and sustainable standards (if there are any) set by the brand are met and see the real value in the clothes they buy.

Blockchain can also improve the work of organisations like Good On You! Our rating methodology is robust, and blockchain could allow us to have access to more detailed, precise and trustworthy information about fashion brands so we can give you guys better ratings and more beautiful stories about the ethical fashion brands we love.

All of this means that blockchain can potentially help change the way fashion is perceived nowadays: as something cheap, that is worn once (or twice, shocking) and thrown away in a place far, far away, somewhere we don’t know.

By shining the light on the story of our clothes and bringing more transparency to the fashion supply chain, blockchain can help move away from the fast-fashion trend we've sadly fallen into, and bring more love to these beautiful creations that are clothes.

But there are still some obstacles

It’s important to remember that blockchain is a relatively new technology. It is unregulated, and no standards or certifications have been set to structure the development of blockchain solutions.

The technology is also costly for now and some parts, like cryptocurrency mining, consume a lot of energy, making the whole process not exactly sustainable on the long-run.

There clearly are some changes to be made, and the adoption of blockchain by fashion industry players is predicted to be slow, but this new technology does have an exciting potential that cannot be ignored.

At Good On You, we look forward to seeing how blockchain develops and to discovering innovative ways new technologies can help change the fashion industry for the better.

Editor's note

feature image via Martine Jarlgaard. Other images via BabyGhost.

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