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Blockchain-enabled digital fashion creates new business models for brands

A “digital-first” model is disrupting the fashion sector, as blockchain technology shows advanced capabilities in Web3 e-commerce and sustainability.
Nonfungible tokens (NFT) may be disrupting the trillion-dollar fashion industry,…

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A “digital-first” model is disrupting the fashion sector, as blockchain technology shows advanced capabilities in Web3 e-commerce and sustainability.

Nonfungible tokens (NFT) may be disrupting the trillion-dollar fashion industry, but NFTs are just one piece of a much larger puzzle that is revolutionizing this sector. Rather, blockchain technology as a whole continues to be a game-changer for the fashion industry. 

While blockchain-based supply chains served as some of the earliest use cases of how the technology could help detect fraudulent items, digital wearables being built on blockchain networks are now coming to play. Megan Kaspar, co-founder and managing director of Magnetic — a privately held crypto and blockchain investment and incubation firm — told Cointelegraph that digital fashion is a very powerful use case for blockchain technology. However, she noted that many brands remain unaware of the value that blockchain can provide in terms of creating new business models.

The rise of digital fashion and its impact

In order to explain the massive opportunities blockchain can bring to today’s fashion world, Kaspar noted that all brands will initially move to a “digital-first” model in the near future:

“This is where collections are created digitally first, whether in-house or outsourced to a company. The digital-first process reduces time, energy and capital, all of which are no longer required to preview collections prior to production. The digital collection can then be superimposed onto photos through digital tailoring.”

To put this in perspective, Kaspar was recently featured on the cover of the January issue of Haute Living. This was unique in the sense that it was the first fashion magazine cover in the United States to display digital luxury designer garments on a human. Additionally, the Haute Living cover is equipped with QR codes that generate augmented reality try-on functions, allowing readers to scan barcodes to see how each digital piece featured could look. The designs, which were created by Fendi and digitized by DressX, can then be purchased directly on the Fendi website.

Megan Kaspar on the cover of Haute Living January 2022 in a digital Fendi Dress. Source: Haute Living

While innovative from a marketing perspective, there are other benefits of digital-first fashion. For instance, Adrienne Faurote, fashion director at Haute Living, remarked in her feature story that “the days of shipping over 20 trunks of clothing across the globe” are gone. This is an important point to consider, especially as the COVID-19 pandemic has resulted in a number of supply chain issues, such as shipping containers getting delayed across the world.

It’s also important to note that a blockchain network is not required when it comes to digital-first models. Daria Shapovalova, co-founder of DressX, told Cointelegraph that while the Fendi garments worn by Kaspar on the cover of Haute Living are completely digital, they are not NFTs:

“With this first digital cover in the U.S., we aimed to promote digital fashion to a mainstream audience, making Fendi AR try-on capabilities available to everyone — free of charge. Releasing the items as NFTs, on the other hand, would mean that the digital assets and AR would only belong to the NFT holders, which would significantly limit the audience’s ability to interact with the digital garments.”

According to Shapovalova, while NFTs are capable of bringing many opportunities to the digital fashion industry, such as providing a sense of belonging and a scarcity effect, this was not what DressX intended to achieve with this specific campaign. Kamal Hotchandani, chief operating officer of Haute Media Group, added that the Haute Living cover demonstrates how mainstream publication features are moving to the digital landscape, with the rise of shoppable editorials and augmented reality (AR) try-on capabilities.

Yet when blockchain capabilities are applied to this mix, the benefits become far greater. For example, blockchain technology is enabling Web3 e-commerce between digital and physical items.

Justin Banon, co-founder of Boson Protocol — a decentralized commerce platform — told Cointelegraph that the company has developed a foundational base layer for Web3 that enables smart contracts to execute e-commerce transactions within virtual, metaverse environments. Due to the capabilities provided by smart contracts on Boson’s blockchain network, Banon said that trust issues that could potentially arise in a metaverse setting can be resolved:

“For example, if an individual entered a metaverse and came across another avatar that was selling a car, one may wonder how this transaction would be secure. Boson Protocol serves as the trust layer between the metaverse and the universe by enabling the sale of NFTs with encoded game theory that can then be redeemed for real-world items.”

Blockchain serving as a trusted layer between Web3 commerce transactions is critical here, especially as major labels such as Nike and Adidas set up stores in the metaverse. Digitizing items as NFTs becomes the next step required for selling goods in virtual environments, which bring about additional functionalities.

For instance, Kaspar explained that digital-first collections can be sold solely as NFTs and then later manufactured if a buyer desires to have the physical items: “Harnessing blockchain technology and NFTs affords production quantity, visibility of each garment and globally accessible for the first time in history. Limited-edition drops and on-demand manufacturing could easily be byproducts of Web3.”

Banon added that while 2021 focused primarily on brands selling NFT fashion, this year will see an increased push toward “digi-physical” or “phygitals.” According to Banon, this is when brands sell physical fashion items in Web3 ecosystems that are associated with NFT counterparts. “Think physical sneakers with an NFT wearable version as well,” said Banon. This was recently demonstrated by crypto fashion house RTFKT as the company collaborated with “CryptoPunks” to create 10,000 NFT sneakers. One custom sneaker pair was created for each “CryptoPunk” released and then given to its rightful owner to wear.

The transparency provided by a blockchain network is also beneficial. For example, Kaspar pointed out that limited-edition fashion drops appeal to certain consumers. As such, it’s possible to understand how many items truly exist across a blockchain network when they are sold as digitized NFTs. This was demonstrated recently when Dolce & Gabbana launched its nine-piece “Collezione Genesi” NFT collection.

Although the Fendi collection featured in Haute Living’s January 2022 issue was not NFTs, Natalia Modenova, co-founder of DressX, told Cointelegraph that nonfungible tokens will provide the next layer of utility within the fashion industry:

“NFTs maximize opportunities and open up new realms for self-expression and creativity. We compare NFTs to high-end fashion or haute couture because it provides a sense of belonging, a scarcity effect and a luxury feel, which would not otherwise be achieved in the digital world.”

How soon will digital-first fashion be adopted?

While digital-first models are capable of providing the fashion industry with a number of advantages, there are challenges that may hamper adoption. For instance, while it’s notable how realistic the digital Fendi collection appears on Kaspar, the amount of work required to create such an effect is massive.

To this point, Modenova shared that the process of digitizing garments is always dependent on the materials provided by the brand. “All nine Fendi outfits were digitized from photos, recreating the fabrics, patterns and silhouettes of the luxury garments in the 3D space from scratch,” Kaspar said, adding that all elements of fashion design — such as shape, color, space, form, texture, etc. — play a fundamental role in the digitization of garments to create a perfect visual design. As such, this process requires professionalism that may be difficult to obtain given that the space is still emerging.

Related: Unlocking utility is key for fashion brands launching NFTs in 2022

This challenge does not seem to be impacting the role that blockchain will likely continue to play in the fashion sector. Hotchandani remarked that moving forward, Haute Living plans to convert all the magazine’s covers into NFTs. “Our covers are pieces of art and content relevant to that moment in time, so I feel creating NFTs of our covers gives our art another expression and a permanent home on the blockchain.”

Modenova pointed out that the rise of the metaverse has resulted in “metafashion,” noting that digital assets that were once only used for gaming are now being designed to dress digital versions of humans:

“People from tech and gaming backgrounds quickly understand this, but now, the mainstream is starting to actively follow. This is a common pattern that arises when innovative products are launched. Wearables are the most natural extension of the metaverse and the most important pillar of the metaverse economy.”

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Government

Survey Shows Declining Concerns Among Americans About COVID-19

Survey Shows Declining Concerns Among Americans About COVID-19

A new survey reveals that only 20% of Americans view covid-19 as "a major threat"…

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Survey Shows Declining Concerns Among Americans About COVID-19

A new survey reveals that only 20% of Americans view covid-19 as "a major threat" to the health of the US population - a sharp decline from a high of 67% in July 2020.

(SARMDY/Shutterstock)

What's more, the Pew Research Center survey conducted from Feb. 7 to Feb. 11 showed that just 10% of Americans are concerned that they will  catch the disease and require hospitalization.

"This data represents a low ebb of public concern about the virus that reached its height in the summer and fall of 2020, when as many as two-thirds of Americans viewed COVID-19 as a major threat to public health," reads the report, which was published March 7.

According to the survey, half of the participants understand the significance of researchers and healthcare providers in understanding and treating long COVID - however 27% of participants consider this issue less important, while 22% of Americans are unaware of long COVID.

What's more, while Democrats were far more worried than Republicans in the past, that gap has narrowed significantly.

"In the pandemic’s first year, Democrats were routinely about 40 points more likely than Republicans to view the coronavirus as a major threat to the health of the U.S. population. This gap has waned as overall levels of concern have fallen," reads the report.

More via the Epoch Times;

The survey found that three in ten Democrats under 50 have received an updated COVID-19 vaccine, compared with 66 percent of Democrats ages 65 and older.

Moreover, 66 percent of Democrats ages 65 and older have received the updated COVID-19 vaccine, while only 24 percent of Republicans ages 65 and older have done so.

“This 42-point partisan gap is much wider now than at other points since the start of the outbreak. For instance, in August 2021, 93 percent of older Democrats and 78 percent of older Republicans said they had received all the shots needed to be fully vaccinated (a 15-point gap),” it noted.

COVID-19 No Longer an Emergency

The U.S. Centers for Disease Control and Prevention (CDC) recently issued its updated recommendations for the virus, which no longer require people to stay home for five days after testing positive for COVID-19.

The updated guidance recommends that people who contracted a respiratory virus stay home, and they can resume normal activities when their symptoms improve overall and their fever subsides for 24 hours without medication.

“We still must use the commonsense solutions we know work to protect ourselves and others from serious illness from respiratory viruses, this includes vaccination, treatment, and staying home when we get sick,” CDC director Dr. Mandy Cohen said in a statement.

The CDC said that while the virus remains a threat, it is now less likely to cause severe illness because of widespread immunity and improved tools to prevent and treat the disease.

Importantly, states and countries that have already adjusted recommended isolation times have not seen increased hospitalizations or deaths related to COVID-19,” it stated.

The federal government suspended its free at-home COVID-19 test program on March 8, according to a website set up by the government, following a decrease in COVID-19-related hospitalizations.

According to the CDC, hospitalization rates for COVID-19 and influenza diseases remain “elevated” but are decreasing in some parts of the United States.

Tyler Durden Sun, 03/10/2024 - 22:45

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International

Rand Paul Teases Senate GOP Leader Run – Musk Says “I Would Support”

Rand Paul Teases Senate GOP Leader Run – Musk Says "I Would Support"

Republican Kentucky Senator Rand Paul on Friday hinted that he may jump…

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Rand Paul Teases Senate GOP Leader Run - Musk Says "I Would Support"

Republican Kentucky Senator Rand Paul on Friday hinted that he may jump into the race to become the next Senate GOP leader, and Elon Musk was quick to support the idea. Republicans must find a successor for periodically malfunctioning Mitch McConnell, who recently announced he'll step down in November, though intending to keep his Senate seat until his term ends in January 2027, when he'd be within weeks of turning 86. 

So far, the announced field consists of two quintessential establishment types: John Cornyn of Texas and John Thune of South Dakota. While John Barrasso's name had been thrown around as one of "The Three Johns" considered top contenders, the Wyoming senator on Tuesday said he'll instead seek the number two slot as party whip. 

Paul used X to tease his potential bid for the position which -- if the GOP takes back the upper chamber in November -- could graduate from Minority Leader to Majority Leader. He started by telling his 5.1 million followers he'd had lots of people asking him about his interest in running...

...then followed up with a poll in which he predictably annihilated Cornyn and Thune, taking a 96% share as of Friday night, with the other two below 2% each. 

Elon Musk was quick to back the idea of Paul as GOP leader, while daring Cornyn and Thune to follow Paul's lead by throwing their names out for consideration by the Twitter-verse X-verse. 

Paul has been a stalwart opponent of security-state mass surveillance, foreign interventionism -- to include shoveling billions of dollars into the proxy war in Ukraine -- and out-of-control spending in general. He demonstrated the latter passion on the Senate floor this week as he ridiculed the latest kick-the-can spending package:   

In February, Paul used Senate rules to force his colleagues into a grueling Super Bowl weekend of votes, as he worked to derail a $95 billion foreign aid bill. "I think we should stay here as long as it takes,” said Paul. “If it takes a week or a month, I’ll force them to stay here to discuss why they think the border of Ukraine is more important than the US border.”

Don't expect a Majority Leader Paul to ditch the filibuster -- he's been a hardy user of the legislative delay tactic. In 2013, he spoke for 13 hours to fight the nomination of John Brennan as CIA director. In 2015, he orated for 10-and-a-half-hours to oppose extension of the Patriot Act

Rand Paul amid his 10 1/2 hour filibuster in 2015

Among the general public, Paul is probably best known as Capitol Hill's chief tormentor of Dr. Anthony Fauci, who was director of the National Institute of Allergy and Infectious Disease during the Covid-19 pandemic. Paul says the evidence indicates the virus emerged from China's Wuhan Institute of Virology. He's accused Fauci and other members of the US government public health apparatus of evading questions about their funding of the Chinese lab's "gain of function" research, which takes natural viruses and morphs them into something more dangerous. Paul has pointedly said that Fauci committed perjury in congressional hearings and that he belongs in jail "without question."   

Musk is neither the only nor the first noteworthy figure to back Paul for party leader. Just hours after McConnell announced his upcoming step-down from leadership, independent 2024 presidential candidate Robert F. Kennedy, Jr voiced his support: 

In a testament to the extent to which the establishment recoils at the libertarian-minded Paul, mainstream media outlets -- which have been quick to report on other developments in the majority leader race -- pretended not to notice that Paul had signaled his interest in the job. More than 24 hours after Paul's test-the-waters tweet-fest began, not a single major outlet had brought it to the attention of their audience. 

That may be his strongest endorsement yet. 

Tyler Durden Sun, 03/10/2024 - 20:25

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Government

The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While “Waiting” For Deporation, Asylum

The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While "Waiting" For Deporation, Asylum

Over the past several…

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The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While "Waiting" For Deporation, Asylum

Over the past several months we've pointed out that there has  been zero job creation for native-born workers since the summer of 2018...

... and that since Joe Biden was sworn into office, most of the post-pandemic job gains the administration continuously brags about have gone foreign-born (read immigrants, mostly illegal ones) workers.

And while the left might find this data almost as verboten as FBI crime statistics - as it directly supports the so-called "great replacement theory" we're not supposed to discuss - it also coincides with record numbers of illegal crossings into the United States under Biden.

In short, the Biden administration opened the floodgates, 10 million illegal immigrants poured into the country, and most of the post-pandemic "jobs recovery" went to foreign-born workers, of which illegal immigrants represent the largest chunk.

Asylum seekers from Venezuela await work permits on June 28, 2023 (via the Chicago Tribune)

'But Tyler, illegal immigrants can't possibly work in the United States whilst awaiting their asylum hearings,' one might hear from the peanut gallery. On the contrary: ever since Biden reversed a key aspect of Trump's labor policies, all illegal immigrants - even those awaiting deportation proceedings - have been given carte blanche to work while awaiting said proceedings for up to five years...

... something which even Elon Musk was shocked to learn.

Which leads us to another question: recall that the primary concern for the Biden admin for much of 2022 and 2023 was soaring prices, i.e., relentless inflation in general, and rising wages in particular, which in turn prompted even Goldman to admit two years ago that the diabolical wage-price spiral had been unleashed in the US (diabolical, because nothing absent a major economic shock, read recession or depression, can short-circuit it once it is in place).

Well, there is one other thing that can break the wage-price spiral loop: a flood of ultra-cheap illegal immigrant workers. But don't take our word for it: here is Fed Chair Jerome Powell himself during his February 60 Minutes interview:

PELLEY: Why was immigration important?

POWELL: Because, you know, immigrants come in, and they tend to work at a rate that is at or above that for non-immigrants. Immigrants who come to the country tend to be in the workforce at a slightly higher level than native Americans do. But that's largely because of the age difference. They tend to skew younger.

PELLEY: Why is immigration so important to the economy?

POWELL: Well, first of all, immigration policy is not the Fed's job. The immigration policy of the United States is really important and really much under discussion right now, and that's none of our business. We don't set immigration policy. We don't comment on it.

I will say, over time, though, the U.S. economy has benefited from immigration. And, frankly, just in the last, year a big part of the story of the labor market coming back into better balance is immigration returning to levels that were more typical of the pre-pandemic era.

PELLEY: The country needed the workers.

POWELL: It did. And so, that's what's been happening.

Translation: Immigrants work hard, and Americans are lazy. But much more importantly, since illegal immigrants will work for any pay, and since Biden's Department of Homeland Security, via its Citizenship and Immigration Services Agency, has made it so illegal immigrants can work in the US perfectly legally for up to 5 years (if not more), one can argue that the flood of illegals through the southern border has been the primary reason why inflation - or rather mostly wage inflation, that all too critical component of the wage-price spiral  - has moderated in in the past year, when the US labor market suddenly found itself flooded with millions of perfectly eligible workers, who just also happen to be illegal immigrants and thus have zero wage bargaining options.

None of this is to suggest that the relentless flood of immigrants into the US is not also driven by voting and census concerns - something Elon Musk has been pounding the table on in recent weeks, and has gone so far to call it "the biggest corruption of American democracy in the 21st century", but in retrospect, one can also argue that the only modest success the Biden admin has had in the past year - namely bringing inflation down from a torrid 9% annual rate to "only" 3% - has also been due to the millions of illegals he's imported into the country.

We would be remiss if we didn't also note that this so often carries catastrophic short-term consequences for the social fabric of the country (the Laken Riley fiasco being only the latest example), not to mention the far more dire long-term consequences for the future of the US - chief among them the trillions of dollars in debt the US will need to incur to pay for all those new illegal immigrants Democrat voters and low-paid workers. This is on top of the labor revolution that will kick in once AI leads to mass layoffs among high-paying, white-collar jobs, after which all those newly laid off native-born workers hoping to trade down to lower paying (if available) jobs will discover that hardened criminals from Honduras or Guatemala have already taken them, all thanks to Joe Biden.

Tyler Durden Sun, 03/10/2024 - 19:15

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