IBM’s entry into the blockchain ecosystem is deepening with a new supply chain tracking partnership in the textile and fashion industries.
Armonk, a New York-based tech giant, announced Monday that it is partnering with German textile manufacturer Kaya & Kato to develop a blockchain network that traces the origins of textiles used in the fashion industry. The new app will allow Kaya & Kato’s suppliers and their customers to determine where their materials are processed, as well as understand each stage of the production and distribution processes. IBM says:
“The mesh is designed to provide transparency to the origin of the garment, from the fibers used to make the final product, and to inform consumers that their garments are being produced in a sustainable manner.”
In particular, the initiative is supported by the German Federal Ministry for Economic Development.
IBM has identified sustainable clothing as a promising initiative for growth, especially among young people in Europe.
A study by Morning Consult commissioned by IBM found that 75% of respondents said they were concerned about waste in the fashion industry. 64 percent indicated a desire to buy clothes, new technologies of which can confirm the requirements for environmental friendliness.
Supply chain logistics has long been described as one of the best use cases for blockchain technology. Improved traceability, especially in the FDA, is one of the main drivers of blockchain integration.
It is estimated that by 2025, 20% of global merchants will use blockchain technology for food safety and traceability.
While VeChain is undoubtedly the most famous blockchain project that deals with supply chain management, other protocols like WaltonChain, Wabi, and Ambrosus also want to disrupt this space. In terms of market capitalization and price movements, supply chain cryptocurrencies are relatively small compared to other industry firms such as DeFi, smart contracts, and oracles.
As for IBM, the multinational technology company has grown to become one of the largest blockchain companies in the world. According to IDC research, IBM is the global leader in blockchain services, followed by Accenture and Infosys.