The impact of NFTs in the Fashion Industry. What does BigONE think?

Traditional fashion is rarely about functionality; rather, it signals one’s status and identity. People use it to express themselves and make a statement. People want to signal status and identity in the digital world, just as they can in the physical world. Blockchain is one of the technologies allowing people to live more comfortably and easily in the digital world. Blockchain, via NFTs, has created an opportunity for fashion to go digital while retaining value and the “signals” they were designed for. In this article for its users, BigONE will examine the impact of blockchain technology and NFTs on today’s fashion industry and how to maximize it.

NFTs in the fashion Industry

Non-fungible tokens (NFTs) represent digital asset ownership. They are the newest trend in the blockchain world, representing non-transferable assets. They are one-of-a-kind and one-of-a-kind. NFTs can be compared to bitcoin for collectibles. We want our users to understand that NFTs and the fashion industry are so compatible that most luxurious fashion items can be considered collectibles. There have been several instances where fashion brands have released one-of-a-kind fashion items. This, like NFTs, creates a sense of exclusivity and uniqueness. Scarcity is required for both luxury items and non-tradable. Customers can now express themselves in fashion in the digital world, just as they can in the physical world. As our users know, people do not buy another expensive handbag or watch out of desperation, but because it is part of a lifestyle, a way for them to express themselves and their identity. NFTs can provide the same “value” to customers because they are assets that provide exclusivity and can serve as a status signal.

Potential Applications of NFTs in the fashion industry

BigONE wants users to understand that while NFTs are decentralized and hosted on the “blockchain,” they are still in their early stages in the fashion industry. NFTs have some potential applications that could help transform and add value to the fashion industry. We want to talk about the potential benefits of this “revolutionary” technology with our users.

-Transparency
BigONE wants users to understand that NFTs would aid in the creation of supply chain transparency. Users would be able to view the history of their fashion purchases. From the raw materials used to manufacture the items to the warehouse where they were stored and the truck that transported them, We believe it would contribute to creating a transparent process in the fashion industry supply chain.

-Authenticity
NFTs can validate the authenticity of fashion items; users will be able to tell if the fashion items they are purchasing are original and not a duplicate because NFTs are unique and cannot be duplicated. BigONE believes that this application will aid in the long-term solution of the luxury fashion item duplication and fakes.
-Scarcity
BigONE believes that the use of NFTs in the fashion industry will help create a sense of ‘validated’ exclusivity in users' hearts. One of the characteristics of NFTs is that they are one-of-a-kind and one-of-a-kind. Users would be certain that they are purchasing the original version, thereby validating the fashion item’s exclusivity.

Current Limitations of NFTs in the fashion industry

Even though NFTs have numerous advantages, every good thing has drawbacks. BigONE would like to inform users of its disadvantages to make informed decisions about NFTs in the fashion world. One of the drawbacks of NFTs is the high cost of gas. NFTs are mostly standard ERC-721 tokens, and token gas fees on the Ethereum blockchain are quite high. BigONE believes that this limitation will be scaled when Ethereum upgrades to the much-anticipated layer 2 solutions. Another disadvantage is the environmental cost. Bitcoin, another blockchain implementation, uses a lot of computational power to validate transactions; NFTs would be adding to the high consumption of power already consumed by Bitcoin on the blockchain because the main source of electricity is powered by fossil fuels rather than renewable energy, causing environmental pollution.

Closing Thoughts

BigONE believes in the long-term potential of NFTs and believes that if the right problems are addressed, every limitation can be scaled. We believe that the adoption of more renewable energy sources as major electricity sources would reduce the environmental pollution caused by the rise of NFTs. We believe that NFTs will bring about necessary changes in the fashion industry while also adding value and meaning to the digital world.

In our next article, we would be discussing how NFTs are impacting the sports industry.

About BigONE

BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.