What is Blockchain?
It has the potential to revolutionize the financial system, challenging how products are produced, bought, and sold. But what is blockchain and how does it work? This is crypto explained.
What is Blockchain?
Blockchain is a decentralized, distributed ledger technology that allows for the secure, transparent, and tamper-proof storage of data. It is composed of a series of interconnected “blocks” that contain information, and each block is cryptographically linked to the previous one, forming a chain. This makes it difficult for anyone to alter or tamper with the data once it has been added to the blockchain. Blockchain is used in a variety of industries and applications, including finance, supply chain management, and voting systems. It is often associated with the digital currency Bitcoin, as it is used as the underlying technology for the Bitcoin network.
What does it mean for fashion?
‘Iridescence’ dress, the first digital couture sold on the blockchain for $9,500 USD back in 2019 it inspired lots of people to experiment with using cryptocurrency to monetize their digital products. Blockchain technology has a number of upsides e.g. being resistant to fraud and hacking and being decentralized. It’s also struggling with the backsides of being an unregulated market used for illegal transactions. Adding the fact that the energy it consumes has a negative impact on the environment in times where sustainability no longer is an important – but the most important topic on the agenda for many.
However, blockchain opens up many opportunities for solving actual problems the fashion industry currently struggles to solve. For example, it can create a safer and better system for the authentification of limited edition and premium goods. It also has the capacity to better track and manage the supply chain, making it more transparent, safer, and more sustainable. In this video you can learn more about how blockchain is used to create fashion NFT:s.
Video by Simplilearn