IBM’s entry into the blockchain ecosystem deepens with it a new partnership to track supply chains in the textile and fashion industry.
The Armonk, New York-based tech giant announced on Monday that it was working with German textile manufacturer Kaya Kato to develop a blockchain network designed to track the origins of fabrics used in the fashion industry. With the new application, Kaya Kato’s suppliers and customers can identify where their fabrics are processed and understand every step of the production and sales process. IBM said:
“The network aims to create transparency about the origin of the garments, from the fiber used to the completion of the end product, and to give consumers the knowledge that their garments are produced in a sustainable way.”
Specifically, The initiative is supported by the Federal Ministry for Economic Development.
IBM has identified sustainable clothing as a promising growth industry, especially among the younger population groups in Europe.
A Morning Consult study of European consumers commissioned by IBM found that 75% of respondents say they are concerned about waste in the fashion industry. 64 percent said they would like to buy items of clothing when new technologies could confirm sustainability claims.
Supply chain logistics has long been touted as one of the best use cases for blockchain technology. Improved traceability, especially in the food and drug supply, is one of the biggest value drivers of blockchain integration.
It is estimated that 20% of global supermarkets will use blockchain technology for food safety and traceability by 2025.
Although VeChain is arguably the best-known blockchain project for supply chain management, other protocols such as WaltonChain, Wabi and Ambrosus also try to cause disruptions in this area.. In terms of market capitalization and price history, the supply chain cryptocurrencies are relatively small compared to other cryptocurrencies in the industry such as DeFi, smart contracts, and oracles.
For IBM, the multinational technology company has developed into one of the largest blockchain companies in the world.. IDC Research lists IBM as the global leader in blockchain services, closely followed by Accenture and Infosys.