Supply Chain Transparency

The current level of transparency in the fashion industry is extremely low. Less than 7% of brands score higher than 50% on the ‘Fashion Transparency Index’ as seen in the figure above. Consumers have no way of verifying the source of the products they are buying. Their only option is to look at the label attached to the product - but those labels might not be authentic.


Many different entities play a part in the production process. The relevant data sits in silos with no interoperability while large amounts of trust are required between brands, suppliers, subcontractors and so on. Channels connecting entities in the production process are complex and linear and there is not always transparency between parties.

Most people are not aware of the true origins of their clothing or the many stages garments go through before reaching the store shelf. DLT has the capacity to make the supply chain in the fashion industry vastly more transparent - which customers, with increased levels of awareness and concern about workers’ quality of life in production countries, will gladly welcome.


peaq would allow brands and customers to review every step in the production process and be absolutely sure that all the data is accurate and has not been tampered with. It would allow each part of the production process to be time stamped and registered on a decentralised network. Since all parties involved in the production process are part of the same layer, the data is then auditable and transparent, which in turn prevents problems of trust and miscommunication.

Smart contracts on top of peaq’s data layer will allow agreements between parties in the supply chain to be verifiable and tamper-proof, which eliminates the complexity of trust requirements and contract negotiations. Millions of garments will require registration and massive volumes of data will need to be stored securely. Directed Acyclic Graph (DAG) technology is the perfect solution to the scalability problems blockchains have, with the added advantage of capturing all the value DLT technology brings for the Fashion Industry supply chain.


In the figure above a peaq (micro) token can be assigned to each garment in the production process. This will enable brands to create a digital history of each step taken with specific data, such as production times and factory location. A second layer solution, such as a mobile app could be used to present the production data gathered, which anyone who later interacts with the garment will be able to access through a chip, QR code or NFC-enabled label.

The nature of DAG technology means that records are immutable, so when the supplier tries to alter an order, the customer will have an irrefutable record of the original order information.

Product Authentication

Fakes and counterfeit goods have grown to be a $461 billion U.S. dollar industry globally.

Luxury and fashion brands spend a lot resources combating counterfeiters, yet counterfeit trade is booming more than ever and by 2022 more than 5.4 million jobs could be at risk due to counterfeits and pirated goods in the global economy.

Companies in the Fashion Industry require a global effort to tackle this problem. This ties in with supply chain transparency, described above. Once brands start tracking their products during the manufacturing process, consumers will be able to verify the entire journey of each product they purchase. Through peaq, counterfeiters won’t be able to alter data stored on the network.

A peaq (micro) token can be assigned to each SKU code. Each purchase of a product can be recorded and assigned to the product’s peaq token. The purchased product is assigned to a single customer, and ownership of the product is registered. If the product is resold, the next owner can claim ownership of it. Another possibility would be to install a chip into each item of clothing, containing read-only, tamper-proof data verified on the peaq DAG.