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IBM’s foray into the blockchain ecosystem is deepening with a new partnership to track supply chains in the textile and fashion industries.
New York-based tech giant Armonk announced Monday that it is partnering with German textile manufacturer Kaya & Kato to develop a blockchain network that tracks the origin of fabrics used in the fashion industry. The new application will allow Kaya & Kato suppliers and customers to identify where their fabrics are processed, as well as to understand each step of the manufacturing 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 produced in a sustainable way.”
In particular, the initiative is supported by the German Federal Ministry for Economic Development.
IBM has identified sustainable apparel as a promising growth venture, particularly among Europe’s young demographics.
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. 64% indicate a desire to buy clothing if new technologies could verify sustainability claims.
Supply chain logistics has long been touted as one of the best use cases for blockchain technology. Better traceability, especially in the supply of food and medicine, is one of the major value drivers of blockchain integration.
It is estimated that 20% of global grocers will use blockchain technology for food safety and traceability by 2025.
Although VeChain is arguably the most recognizable blockchain project addressing supply chain management, other protocols such as WaltonChain, Wabi and Ambrosus are also trying to disrupt this space. In terms of market cap and price action, supply chain cryptocurrencies are relatively small compared to other verticals like DeFi, smart contracts, and oracles.
As for IBM, the tech multinational has emerged as one of the largest blockchain firms in the world. IDC’s research lists IBM as a global market leader in blockchain services, closely followed by Accenture and Infosys.
