Textile Industry Welcomes New Era! See How To Play The Block Chain?

What is block chain?

There is a closed mountain village. The main task of the villagers is to dig jade, and the wealth in the village is also calculated by jade. The jade stones we had dug up together were counted by the village head. The wealth of Zhang San, Li Si and Wang Wu is recorded on the account books of the village head, and they can exchange for other daily necessities. This is the current central bookkeeping financial system. Banks, brokerages, Alipay and other financial institutions are "village heads". Almost all of our current assets are in their books. But the village head is a mortal, old ignorant, Parkinson, salty pig... There are many kinds of faults. At the time of keeping accounts, I saw more beautiful women in the countryside. Then the account books are kept, and there are often problems. Some areas are blurred by damp, and some places are eaten by rats.

The villagers decided to abolish the village head who did not work, eat in white, often wipe away, and make mistakes. Then who will account for it? The villagers thought of a way: everyone brought an account book. When anyone dug up jade, he kept a record of all the people at the same time. Everyone wrote the same content in their own books, and the books were kept by the villagers. After that, the exchange of jade articles between villagers is also done through this way. This saves a bookkeeping effort and avoids the dampness of books. Even if a person's account is mistaken, you can find out the problem and correct it immediately by comparing it with other people's accounts. This is centralization of distributed bookkeeping.

When the question came, Li Si suddenly had a flash of inspiration. "I'll take the jade that I have recorded again and remember it once more. How can it be doubled?" the villagers thought of a way to solve the problem of Lee four's fraud. Mark each jade, record the time, place and character of the excavation, and the information of the last piece of jade.

Therefore, every village's account book records the complete information of each jade. Each jade has an information connection with the last jade, forming a chain. Lee four can neither fabricate anything or change the previous record.

This is the block chain - P2P distributed bookkeeping.

In the above case, distributed bookkeeping, every digging jade, the villagers need to stop work, update the accounts once, but reduced production efficiency. But in the Internet computer, this is a flash. Block chain does not necessarily need to dig jade link, jade (bitcoin, or other things) can be produced by various rules. Block chain is not equal to bitcoin, bitcoin is an application based on block chain technology.

The function of block chain is mainly to record the origin and development of these items. According to the current mainstream view of block chain industry, compared with traditional central bookkeeping, the distributed block chain is safe, accurate, efficient and open. It does not need to sacrifice huge friction costs to feed large financial institutions (village heads), and because of the centralization of P2P storage, there is no need to worry about problems such as the invasion of HEI database by financial institutions, the natural disasters and the coup of computer rooms.

Textile industry + block chain =?

So the block chain is the most popular technology nowadays. The textile and garment industry is the oldest industry of mankind. What kind of spark will the two combine together?

The supply chain of China's textile industry covers the whole process of development and design, raw material procurement, product production, warehousing and logistics, wholesale operation and terminal retail. From the perspective of the whole supply chain system, there are problems of core enterprise credit transfer, information asymmetry between upstream and downstream enterprises, suppliers mostly for small and medium-sized enterprises, and generally facing financing difficulties.

The energy of block chains in textile supply chain finance

The block chain technology is introduced into the supply chain finance system of textile industry, relying on the real trade background of the industrial chain and the payment credit of the core enterprise, and by using the distributed account characteristics of the block chain which can not be tampered with and shared by many parties, the credit sale behavior in the trade process is converted into a split, transferable, block able chain accounting voucher that can be held in the trade process by block chain technology, thus releasing and transferring the core business credit, breaking the information asymmetry, reducing the trust cost and the risk of large capital transfer, optimizing the allocation of funds, providing more investment scenarios for the financial institutions, and easing the problem of supplier financing.

Block chain helps shape brand power

At the same time, the use of "brand + block chain" mode can solve the current "trust crisis" in the clothing industry. With the progress of the times and the development of the industry, the fashion industry has changed from the seller's market to the buyer's market. There are also some problems in the industry: over production, over consumption, homogenization competition, textile waste and harmful chemicals.

In addition, with the progress of the times, consumers began to demand opaque prices, producing areas, raw materials, environmental protection and even workers' working conditions. Especially the millennial generation and even the "Z generation" have become the mainstream of consumption. They have little interest in famous brands, no longer pursue public fashions, and are more concerned about environmental protection, more concerned about inner feelings, and prefer to live in their own way. Higher supply chain transparency has become a driving force for enterprises to change their way of operation and even change their way of looking at themselves as an organization.

Clothing companies have begun to notice this, and in some cases try to change their business models. Take Nike as an example, instead of positioning themselves as a clothing company, instead, they call themselves a technology company that can just make clothes. Their clothes and shoes are often equipped with sensors for tracking heart rate, running mileage or burning calories.

The application of block chain technology makes production process transparent and more reliable.

At present, several top fashion companies have collaborated to create a standardized product life cycle labeling system using block chaining technology, thus enabling this technology to play a greater role in the fashion industry. In May 2017, at the Copenhagen fashion summit Solutions Lab, Provenance and Martine Jarlgaard showed the first costumes tracked by block chaining technology in history. From raw material (camel hair), spinning and weaving to a garment in Martine Jarlgaard's London studio, every process is registered on the block chain. Each garment will then receive a unique digital token containing specific data such as location, factory name and time. This information will be presented in the application of mobile phones. Anyone who later interact with clothing can access it through two-dimensional code or NFC supported tags, which can prove the authenticity and source of the product.

First, block chain technology is used to link the supply chain and the block chain storage system with different commodity circulation participants. They include origin, producers, distributors, retailers, branding and consumers. So that each participant information can be seen in the block chain system.

Secondly, the operators in block chain alliance chain can be roughly divided into the following parts: Alliance chain, automation, visualization, data efficiency, cross link bridging, each link has a complete set of operation mechanism. Data link information has all (Quan) aspects, automation, openness, high efficiency, rationality and linkage.

Based on the remarkable characteristics of retail industry, such as fragmentation of transaction data, diversification of trading nodes and complexity of transaction network, the collection, storage and integration of information such as commodity production, circulation, delivery and so on is the core proposition of end to end retail supply chain management.

In the next few years, great changes will take place in the textile and garment industry. With the progress of technology, the industry will become more transparent, real and sustainable, with a pleasant consumption experience.