Let’s break this whole ordeal down, shall we?
When we talk about sustainability, more often than not, we tend to lean towards environmental sustainability only. In doing so, we keep ourselves in the dark about the much broader definition. One that encapsulates much more while saying it is the act of meeting the requirements of the present generation without leaving a deficit for the future ones.
When we talk about sustainability, more often than not, we tend to lean towards environmental sustainability only. In doing so, we keep ourselves in the dark about the much broader definition. One that encapsulates much more while saying it is the act of meeting the requirements of the present generation without leaving a deficit for the future ones.
While this is a simple and appealing definition, it is often very hard to define an act as sustainable, as most often we struggle to make our needs met; how then will we know what future generations will want? Alternately on the other side, those who are well off live lavish lifestyles stealing from not only future generations but also their contemporaries living now!
How does blockchain figure into all this? To better understand the concept let’s briefly run through what blockchain is.
As is the case with most technologies, Blockchain in its nascent form came into the world more than a decade ago but made it’s mark on the general public’s consciousness only recently. Here too, there is a rampant confusion as for the layman, there is no difference between blockchain, cryptocurrency, and bitcoin, the latter two using the blockchain technology. The simplest explanation I’ve come across is one by Fashionista that calls it a,
“a decentralized, tamper-proof ledger. The ledger part denotes that it’s like a digital document that keeps track of transactions; the decentralized part essentially means that multiple parties control the ledger. As a result, each transaction that’s added to the ledger becomes locked in, so no other party can edit or alter someone else’s entry without everyone knowing it. It’s also transparent, so everyone can see who entered what”
Blockchains log in transactions of goods, services, currencies, the records of which are then stored in a decentralized network of over 200,000 computer servers scattered across the globe that make the blockchain network. And since it is operated by so many people but isn’t owned by anyone, the decentralized ownership makes it tamper-proof.
What this achieves is an increased degree of transparency, one that is accessible to everyone. The lack of transparency along the supply global supply chains create challenges regarding fraud, pollution, human rights abuses, and other inefficiencies. Sustainable behaviour of individuals and companies is therefore currently hard to track and not well rewarded.
Not long ago, before we boomed into the information age, companies preferred to keep their supply chains a secret. It gave a competitive edge to the makers. If no one knew how you make it, no one could fake it. And as long as the customers were kept in the dark about the manufacturing process and the material sourcing, they would not concern themselves with the ethical concerns surrounding it.
For a long time, every industry functioned this way. Until, the Information Age dawned on us! Today’s youth don’t consume as much ‘fast fashion’ as their predecessors did. Minimalist lifestyle and gender neutral clothing have been in vogue for some time now. In addition to this, many lifestyle brands have been exposed to being wasteful, unethical, environmentally unfriendly and unsustainable in their product life cycle receiving severe consumer backlash.
Today’s consumer base and market alike leans towards meeting the sustainable goals set by the United Nations to appear as conglomerates that care about the environment and the customer. No matter the age change, one thing remains constant – Customer is KING and what he demands, he gets.
As technology continues to advance in various spheres and with additive manufacturing and microsystem technologies develop, wearable devices embedded in clothes to measure and monitor health creates a whole new market for the Fashion industry to venture into. Coupled with that, the digital advancements such as Blockchain technology that is accessible to the lay consumer today sees him demand an increased degree of transparency in what he consumes.
The blockchain solution offers to link a physical product that you purchase with a digital seal that traces its origin all the way back to the raw materials. So each and every supplier and middleman is marked on it as each change in custody is marked on the blockchain. Counterfeiting can be largely routed as you can visibly notice missing chunks in the blockchain which could put an abrupt end to all imitation products.
Technology and Consumer mood changes how companies look at themselves and that is reflected on the many name changes and mission statement changes that corporates adopt. ITC's shift towards education, stationery and lifestyle products from Tobacco as it was initially. Kentucky Fried Chicken's rebranding to KFC to better suit the consumer becoming health conscious in a largely obese America not being a fan of 'fried' are examples of such a trend. The marketing and positioning of a company to better suit public perception gives it the edge these days as opposed to the supply chain and sources as information is overflowing in the public domain.
While all these sound fun and dandy, this will only work out if everyone is onboard with the idea. The brand, the manufacturer, his supplier, and the supplier before him. While it puts the brand at a fair advantage to let their customers know where their clothes are coming from, one of the middlemen down the line might not be too pleased at the idea of revealing his methods. In short, for those brands who want to keep the process opaque, blockchain won’t change anything but for those who actively want to adopt new technologies to better get a grip on their process, this technology could lift a huge load off their shoulders when it comes to record keeping and verification.
Furthermore, there is enough documented data that can be analyzed and measured with standards to then confirm or disprove claims of unsustainability in accordance with global standards. It seems to be a win win for everyone except for those who don't want to.
Every once in a while, humankind is faced with a question. Whether or not to embrace something knowing full well it’s constructive and destructive potential. But potential nonetheless, to change the world and how it functions. After fire, metallurgy, gunpowder and the internet, blockchain and cryptocurrencies seem to be the next big thing! Is it really, is a question we leave for the future to answer.
How does blockchain figure into all this? To better understand the concept let’s briefly run through what blockchain is.
As is the case with most technologies, Blockchain in its nascent form came into the world more than a decade ago but made it’s mark on the general public’s consciousness only recently. Here too, there is a rampant confusion as for the layman, there is no difference between blockchain, cryptocurrency, and bitcoin, the latter two using the blockchain technology. The simplest explanation I’ve come across is one by Fashionista that calls it a,
“a decentralized, tamper-proof ledger. The ledger part denotes that it’s like a digital document that keeps track of transactions; the decentralized part essentially means that multiple parties control the ledger. As a result, each transaction that’s added to the ledger becomes locked in, so no other party can edit or alter someone else’s entry without everyone knowing it. It’s also transparent, so everyone can see who entered what”
Blockchains log in transactions of goods, services, currencies, the records of which are then stored in a decentralized network of over 200,000 computer servers scattered across the globe that make the blockchain network. And since it is operated by so many people but isn’t owned by anyone, the decentralized ownership makes it tamper-proof.
What this achieves is an increased degree of transparency, one that is accessible to everyone. The lack of transparency along the supply global supply chains create challenges regarding fraud, pollution, human rights abuses, and other inefficiencies. Sustainable behaviour of individuals and companies is therefore currently hard to track and not well rewarded.
Not long ago, before we boomed into the information age, companies preferred to keep their supply chains a secret. It gave a competitive edge to the makers. If no one knew how you make it, no one could fake it. And as long as the customers were kept in the dark about the manufacturing process and the material sourcing, they would not concern themselves with the ethical concerns surrounding it.
For a long time, every industry functioned this way. Until, the Information Age dawned on us! Today’s youth don’t consume as much ‘fast fashion’ as their predecessors did. Minimalist lifestyle and gender neutral clothing have been in vogue for some time now. In addition to this, many lifestyle brands have been exposed to being wasteful, unethical, environmentally unfriendly and unsustainable in their product life cycle receiving severe consumer backlash.
Today’s consumer base and market alike leans towards meeting the sustainable goals set by the United Nations to appear as conglomerates that care about the environment and the customer. No matter the age change, one thing remains constant – Customer is KING and what he demands, he gets.
As technology continues to advance in various spheres and with additive manufacturing and microsystem technologies develop, wearable devices embedded in clothes to measure and monitor health creates a whole new market for the Fashion industry to venture into. Coupled with that, the digital advancements such as Blockchain technology that is accessible to the lay consumer today sees him demand an increased degree of transparency in what he consumes.
The blockchain solution offers to link a physical product that you purchase with a digital seal that traces its origin all the way back to the raw materials. So each and every supplier and middleman is marked on it as each change in custody is marked on the blockchain. Counterfeiting can be largely routed as you can visibly notice missing chunks in the blockchain which could put an abrupt end to all imitation products.
Technology and Consumer mood changes how companies look at themselves and that is reflected on the many name changes and mission statement changes that corporates adopt. ITC's shift towards education, stationery and lifestyle products from Tobacco as it was initially. Kentucky Fried Chicken's rebranding to KFC to better suit the consumer becoming health conscious in a largely obese America not being a fan of 'fried' are examples of such a trend. The marketing and positioning of a company to better suit public perception gives it the edge these days as opposed to the supply chain and sources as information is overflowing in the public domain.
While all these sound fun and dandy, this will only work out if everyone is onboard with the idea. The brand, the manufacturer, his supplier, and the supplier before him. While it puts the brand at a fair advantage to let their customers know where their clothes are coming from, one of the middlemen down the line might not be too pleased at the idea of revealing his methods. In short, for those brands who want to keep the process opaque, blockchain won’t change anything but for those who actively want to adopt new technologies to better get a grip on their process, this technology could lift a huge load off their shoulders when it comes to record keeping and verification.
Furthermore, there is enough documented data that can be analyzed and measured with standards to then confirm or disprove claims of unsustainability in accordance with global standards. It seems to be a win win for everyone except for those who don't want to.
Every once in a while, humankind is faced with a question. Whether or not to embrace something knowing full well it’s constructive and destructive potential. But potential nonetheless, to change the world and how it functions. After fire, metallurgy, gunpowder and the internet, blockchain and cryptocurrencies seem to be the next big thing! Is it really, is a question we leave for the future to answer.