Seeing that Fabian will be a speaker on Circular Fashion Summit Technology Panel, we had a chat with him to discuss the opportunities for using Blockchain in the fashion industry.
You are a well known Ethereum developer responsible for co-creating the ERC-20 Token Standard with a technical background. How did you end up co-founding LUKSO, the fashion and lifestyle industry blockchain?
The Lifestyle community is the perfect audience for everything ownership, tokenization and new ways to form a community. The possibility of creating a Blockchain ecosystem from scratch, one that impacts non-technical people on such a massive scale, excites me. I have gone through that process with Ethereum and think the technology and the tools and people are now ready for it to move to the next level.
Why do you think there is potential for using blockchain technology in the fashion industry?
The potential is endless, track and trace is just the beginning. Digital ownership of physical products is the core piece. As you own your iPhone through your Apple ID, so will you own your expensive handbag or other products through your Blockchain-based account in the future. The possibilities for a more direct communication and value exchange between brands and customers, or the ability for small brands to engage with their audience is huge and only exists today through social media. Tokenization will here allow for a completely different way of interaction.
Supply chain management is one of the most pressing issues in the fashion industry. How can the industry benefit from blockchain technology to improve this issue?
It is also the hardest, as it involves a lot of very outdated systems and structures. Its is more a long term goal, but not a quick fix to create a verifiable transparent supply chain. The moment you create digital certificates Blockchain for items, they get their own life. A life that can include the past of the supply chain, but also the future life after purchase. It will naturally lead to more transparency around those items, and encourage re-selling, as it makes these items collectables with their own unique identity.
The world of luxury is interested in blockchain to fight against counterfeiting, and you have mentioned digital twins at LUKSO. Could you tell us exactly what does that mean for the fashion industry and how do digital twins work?
Digital twins or digital certificates are the digital ownable identity of a physical product. They are based on smart contracts, ideally living in a public permissionless and verifiable blockchain. They should be standardized, so they can be interacted with by any app, service or protocol and can have all kinds of information attached to it. They create the basis for all kinds of future use cases: from tokenized loyalty programs to community choices around their brand, to new forms of assets and sharing economy models. The possibilities are endless and we will likely see a strong shift in the role and activities of brands.
In the next few years, how the blockchain technology will change our daily life?
Everything we own and interact will become verifiable and trustable. We will easily see who has similar interest based on the portfolio of tokens they hold. Those will be not necessarily buyable, but earn-able only. New forms of collectables and valuables will appear, from physical items to purely digital fashion – items that will never be produced, but enhance your digital self. Virtual Reality and AR will be a large part of our life, and blockchain is the most necessary component when it comes to owning things in the digital space. The ability to make money and also share value will radically increase and new brands will appear, that will mainly speak to the technology-driven young generations. But everything starts with identities on a blockchain, from brands to users to products.
Learn more about Blockchain in Fashion by joining Circular Fashion Summit.