According to Gucci, it’s “only a matter of time” before major fashion houses get into non-fungible tokens (NFTs). NFTs are not all about art, or games. They also have made their way into the top luxury fashion brands.
First, what is NFT?
NFT stands for “non-fungible token.” At a basic level, an NFT is a digital asset that links ownership to unique physical or digital items, such as works of art, real estate, music, clothes, handbags, or videos.
- Non-Fungible: Each NFT is one-of-a-kind. Unlike dollar bills, gold, etc., NFTs are not interchangeable, because each token has a unique value that cannot be replicated.
- Token: A unit of data, stored on a blockchain and associated with a specific crypto wallet, identified through a digital asset such as a photo, video, or GIF.
- Blockchain: A shared and decentralized database that facilitates the process of recording transactions and tracking assets in a network, guaranteeing nobody can modify the history of the token’s ownership.
NFT has a unique serial number just like a vehicle identification number (VIN) on a car, the VIN serves as the car’s fingerprint, as no two vehicles in operation have the same VIN. Items with NFTs are impossible to duplicate or fake as every detail of its origin and history of owners is stored in the metadata. Consumers can be 100% sure of the authenticity of what they buy, while resellers cut off the stream of fakes and thereby save their money and reputation.
Fashion Industry with NFTs
In the fashion industry, the focus on the NFT as sales mechanism distracts from the NFT’s potential as an expanded certificate of authenticity. By combining a record of ownership and provenance with flexible copyright details, sales, and preservation strategies, the NFT could become a more sophisticated authentication tool.
The NFT chips can be used on fashion luxury and limited-edition items. By converting such items into NFTs, their authenticity can easily be proven at the click of a button.
“We have this encrypted tag solution that works very well,” said Mark Shekleton, CEO and co-founder of Smart Seal to Hartford Business in 2021. “Our system provides proof of ownership, proof of authenticity, proof of tamper status, geolocation services,” he added.
According to Smart Seal, there are three benefits to providing digital identities to valuable products: single-touch access to complete product data, consumer protection through proven validity, and enhanced consumer experience. Smart Seal achieves this in 5 steps: NFC Embedding, NFT meets NFC, Metadata, Verification, and Royalties. It’s all linked to a system where the creator or owner can check the details and history of that product.
Top Luxury Brands Using NFTs
From fashion brands to eyewear, luxury goods companies are leading a digital and technological world. Here are some of the biggest luxury NFTs so far: