IBM has partnered with Kaya&Kato, a textile company that manufactures uniforms and workwear, to develop a blockchain network that tracks the origin of fabrics used in the fashion industry.
It has been reported that the new application will allow Kaya&Kato’s suppliers and customers to identify where their fabrics are processed, as well as understand each step of the production and distribution processes.
IBM said:
“The network is designed to create transparency about the origin of garments, from the fiber used to the completion of the final product, and to provide consumers with the knowledge that their clothes are sustainably produced.”
However, the initiative is supported by Germany’s Federal Ministry for Economic Development, as IBM has identified sustainable clothing as a promising growth venture, particularly among Europe’s younger demographics.
IBM and KAYA&KATO are teaming up to bring sustainable fashion to the fore. https://t.co/4HJpNjffIL — Cointelegraph (@Cointelegraph) November 16, 2020
The report said that an IBM-commissioned study of European consumers by Morning Consult found that 75% of respondents say they are concerned about waste in the fashion industry. Sixty-four percent indicate a desire to buy garments if new technologies could verify sustainability claims.
Likewise, supply chain logistics have long been touted as one of the best use-cases for blockchain technology. Improved traceability, especially in the provision of food and medicine, is one of the biggest value drivers of blockchain integration.
It is estimated that 20% of global grocers will use blockchain technology for food safety and traceability by 2025.
Thus, in terms of market capitalization and price action, supply chain cryptocurrencies are relatively small compared with other industry verticals like DeFi, smart contracts, and oracles.
Source: Cointelegraph | Image: Freepik