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A container full of cotton arrives in Europe – but where does it really come from? Global supply chains are complex, fragmented and often opaque. Greenwashing, fake certificates and insufficient supplier controls undermine trust between manufacturers, brands and consumers. Blockchain, as a decentralised and tamper-proof infrastructure, offers a solution: it creates reliable transparency, documents every step and delivers the kind of “digital trust” that today’s B2B decision-makers need.
What blockchain delivers in textile supply chains
Blockchain records every transaction – such as raw material deliveries, processing steps or certification issuance – in an immutable ledger. The data is stored transparently, chronologically and in a decentralised manner, making manipulation virtually impossible. For B2B, this means:
- Real-time tracking of cotton, fibres and yarn batches – from source to processing
- Automated sustainability credentials, e.g. for GOTS, OEKO-TEX or bluesign – directly integrable into audits and digital product passports
- Protection against counterfeiting through secure verification of all supply chain data – a key factor for brand value, CSR compliance and customer trust
- Reduced documentation workload, as all stakeholders work within a unified, validated system – efficient and audit-proof
Blockchain thus provides not only traceability but also a shared foundation of trust for all players in the textile value chain.
Example: As reported by FashionForGood, TextileGenesis uses a permissioned blockchain with so-called "Fibercoins" to transparently track the entire supply chain of sustainably sourced cellulosic fibres.
Blockchain applications in the textile value chain
Raw materials & spinning
In the raw materials phase, blockchain enables end-to-end documentation of agricultural practices – for example, in the case of cotton, linen or hemp. Farmers use apps to record data such as origin, harvest date, water usage or fertiliser application, and digitally sign these entries. The data is stored in tamper-proof blocks and passed on along the supply chain.
Spinners can then purchase certified material with full traceability. An anonymous raw material delivery thus becomes a transparent, trustworthy starting point of the supply chain on which processors and brands can rely.
Manufacturing & processing
In the production environment, blockchain enables digital documentation of all processing steps – from dyeing and weaving to garment manufacturing. Each stakeholder in the chain can input production data, chemicals used or energy consumption. This information is stored immutably and can be used in audits, certifications or digital product passports.
The integration of smart labels or QR codes on textiles makes this digital transparency physically accessible. For manufacturers, this means greater efficiency in verification processes, less effort during audits and a clear competitive edge when it comes to sustainability requirements.
Interior & apparel
In both interior and fashion segments, blockchain enables a digital identity for products – from carpets and curtain fabrics to designer collections. Luxury brands such as Chanel and Prada use platforms like Aura to securely document origin, material composition and production details. The focus is not only on sustainability but also on product protection and brand value.
Digital product passports (DPP) enhance credibility, support second-hand value and help prevent counterfeiting. Especially in the contract sector, such data can also digitally verify functional properties such as fire resistance or sound absorption – a real value-add for planners and interior specifiers.
Blockchain challenges & limitations in supply chains
Despite its potential, blockchain technology also presents challenges. Public blockchains are often seen as energy-intensive and difficult to scale, which is why more efficient “permissioned” solutions like TextileGenesis are preferred. Onboarding small and medium-sized suppliers also remains a hurdle – many lack the necessary technical infrastructure or face language and usability barriers.
Data quality is another critical issue: blockchain can only verify what is entered correctly. Faulty data creates false trust. High initial costs for ERP integration, training and pilot projects can also be a barrier. However, these investments are worthwhile to mitigate risks before large-scale implementation.
Blockchain cannot completely replace physical audits – rather, it complements standards such as supply chain laws or the Digital Product Passport (DPP). Combined with IoT, AI and reporting systems, it offers robust, automated verification. According to Deloitte, blockchain enhances ESG performance, reduces administrative costs and increases trust between trading partners.
Blockchain in supply chains: outlook & recommendations
The course is set: companies can now take initial steps to integrate blockchain in a practical, efficient and future-proof way. Suggested actions:
- Launch pilot projects – e.g. track initial batches with suppliers
- Train suppliers and establish technical requirements
- Choose blockchain solutions (public vs. permissioned, QR codes vs. NFC)
- Use platforms such as TextileGenesis, Provenance, Sourcery or Aura
- Prepare integration with DPP/ESG reporting
In future, blockchain will not stand alone but increasingly interact with circular economy models, carbon tracking and digital product passports – becoming the digital backbone of sustainable textile ecosystems.
The Texpertise Network connects over 500,000 industry players across the textile value chain. It provides a platform for pilot projects, knowledge exchange and international cooperation – ideally suited to jointly advance blockchain initiatives, share experiences and align scaling strategies.
Conclusion: transparency is the foundation of future viability
Blockchain provides a robust basis for traceable, sustainable and future-ready supply chains. It builds trust, minimises manipulation and strengthens the position of brands and manufacturers in complex networks. At the same time, it is not a catch-all solution but an integral part of digital transformation strategies. The Texpertise Network supports companies in shaping this change successfully – collaboratively, practically and with a global outlook.
FAQ – frequently asked questions
How does blockchain differ from traditional ERP or supply chain systems?
Blockchain offers a decentralised ledger where data is stored in a tamper-proof and audit-secure manner. Unlike ERP systems, it enables true multi-party access without a central database. This allows for transparency and trust across multiple stakeholders – beyond company boundaries and without a central authority.
How complex is blockchain implementation for SMEs?
Initial costs typically relate to system integration, training and pilot phases with selected suppliers. Modular, permissioned blockchains (e.g. TextileGenesis) can often be layered onto existing ERP systems. The main challenge is not the technology itself, but acceptance and data quality – particularly among international suppliers.
What role does blockchain play in the Digital Product Passport (DPP)?
Blockchain is an ideal foundation for the DPP, as it stores immutable origin and production data. Products receive a tamper-proof dataset, accessible via QR codes or NFC. This helps brands comply with upcoming EU regulations, as the Digital Product Passport is expected to become mandatory for certain product groups starting in 2027.
