IOTA News: Powering Trustworthy Data for the Circular Economy with Digital Product Passports

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This article explores how IOTA, a feeless and secure distributed ledger technology, is playing a key role in piloting Digital Product Passports (DPP) for a more sustainable future.

The European Commission’s recent adoption of the DPP regulation signifies a major step towards the European Green Deal. By 2027, this regulation will mandate many products to have a unique DPP, enabling identification, tagging, and linking to data relevant to sustainability and circularity.

Similar to how Nutriscore empowers consumers to make informed dietary choices, DPPs aim to guide consumers toward greener options. Additionally, they will equip companies and governments with tools to lessen environmental impact and promote a circular economy.

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Building on a previous DPP pilot, IOTA collaborated with Digimarc in the EU Blockchain Pre-Commercial Procurement Project to demonstrate the viability of DPPs. This project focused on developing the European Blockchain Service Infrastructure (EBSI) for cross-border business and citizen services.

Upcycling Agri-Food Waste and Plastic: A Use Case for IOTA and DPPs

The latest IOTA-powered DPP pilot tackles challenges in agri-food plastic recycling. A key hurdle lies in the lack of digital identities and verifiable sustainability claims, hindering transparency within the system.

This pilot involves various stakeholders: waste producers, managers, recyclers, and manufacturers incorporating recycled plastics. Governmental or private agencies also play a role in verifying claims like the bioplastic content of finished products.

IOTA, along with Digimarc’s digital twin platform (Digimarc Illuminate), facilitates product traceability throughout its lifecycle. This real-time information can be captured through QR codes or digital watermarks, allowing for use cases like handling instructions, recycling sorting, and reporting.

The pilot demonstrates a DPP prototype for mulch film, showcasing details like provenance, raw materials, usage, and sustainability claims.

Key Layers of a DPP Implementation

The DPP blueprint by IOTA and Digimarc comprises four key layers:

  1. Carrier: Primarily QR codes, due to their accessibility (most smartphones can scan them natively). However, digital watermarks might be better suited for specific use cases.
  2. Identity: GS1 Digital Link is the preferred option for its interoperability and ease of access for consumers (through web addresses).
  3. Data: JSON-LD is the dominant data format, promoting interoperability and decentralization as required by the DPP framework.
  4. Trust: Decentralized Identities (DIDs) and Verifiable Credentials (VCs) are crucial for preventing greenwashing. These technologies ensure only authorized entities can make claims, verifiable on a decentralized network.

IOTA and the Agro2Circular Pilot

This pilot delves deeper into enabling different stakeholders to access specific data and make authorized claims within the plastic recycling process for mulch film production.

The pilot digitally recorded data throughout the recycling chain, from waste producers to the finished product containing recycled plastic. This data was recorded as EPCIS 2.0 events via GS1 Digital Link identities and secured on the IOTA ledger.

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A trust model based on DIDs and VCs was established to prevent false claims. A central government could issue identities to various stakeholders, defining the types of claims they can make based on their roles. This fosters trust and transparency within the system.

The Digimarc Illuminate platform plays a key role, managing product identities, data storage, and data rendering for the pilot’s DPPs.

Trust and Interoperability: Paving the Way for the Future

This pilot by IOTA and Digimarc paves the way for future iterations of DPPs, leveraging cutting-edge technologies like DIDs and VCs to ensure trust and verifiability.

While ongoing research and development are needed, brands can begin preparing for the 2027 DPP regulation by adopting digital identities for their products. By leveraging IOTA and Digimarc’s technologies, companies can contribute to a more sustainable future through a transparent and circular economy.