Tech giant IBM and KAYA&KATO, a textile company, joined forces to create a blockchain-based network that would track sustainable clothing production. It aims to bring transparency to the creation process of the product.

The German Federal Ministry of Economic Development (BMZ) strongly supports the newly launched initiative.

The new blockchain implementation will also document and trace the whole textile supply chain as per the publication. The initiative allows suppliers of organic cotton and KAYA&KATO customers to identify the origin of the fabrics and understand each production and distribution step.

IBM expressed, “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 sustainably produced.”

After noticing a continuous increase in consumer demand, IBM thought about it to understand the environmental effect of the products they purchase. After conducting a survey, about 77% of consumers believe that sustainability is essential to them. In comparison, 57% choose to bring changes in their purchasing habits that will positively impact the environment.

Christian Schultze-Wolters, Director of Blockchain at IBM, said, “Blockchain technology is a catalyst for collaboration and transparency across industries and within supply chains. By creating shared visibility, the technology helps foster trust among companies and their suppliers, businesses, and especially their consumers.”

According to IBM, sustainable clothing is a promising growth venture, especially amongst Europe’s younger demographics.

Supply chain logistics have been gratified as one of the best use cases for blockchain technology. Improved traceability, especially in food and medicine, is one of the most significant value drivers of blockchain integration.

Based on estimation, by 2025, about 20% of global grocers will use blockchain technology for food traceability and safety.

Lately, IBM has emerged as one of the world’s biggest blockchain enterprises. Research by IDC lists IBM as the global market leader in blockchain services, followed by Accenture and Infosys.