IOTA Foundation has recently announced that it’s working on developing a Digital Product Passport (DPP) as it strives to conform to climate change.
According to the development shared by the IOTA Foundation in a series of tweets a couple of hours ago, the new tool will enhance the sustainability of products, make supply chains more transparent, and improve the rate at which consumers get needed information.
Transitioning into a Circular Economy is the Key
According to IOTA Foundation, the key to attaining its climate objectives is to transition into a circular economy, which is why DPP is coming to play.
The tweets read in part:
“Transitioning into a #circular economy is key to reaching our climate objectives. But making it mainstream within traditional businesses is currently missing two key aspects for success.
“This is where a DPP based on IOTA‘s DLT comes in. Because Distributed Ledger Technology is transparent by nature, it verifies that the information presented in a DPP is true and trustworthy.”
The foundation said to make this happen, products have to be kept in circulation for as long as possible in order to reduce the use of new resources, recycle & reuse, and improve existing materials.
Functions of IOTA’s Digital Product Passport (DPP)
Digital Product Passport (DPP) that IOTA Foundation is working out will serve as a data collector. In the tweet, DPP is regarded as a “storyteller”.
The DPP in the works will store “Information about the origin, production, use, end, and recycling of a product.” This implies that consumers can verify the origin and green credentials of a product. It will also enhance manufacturers to build the next generation of greener, more sustainable, and more efficient products.
The foundation emphasized in the thread of tweets that this will greatly benefit IOTA and the environment in the long run.
IOTA Foundation also stressed the importance of taking a tokenization or NFT approach in its works towards the digital economy:
“As a #digitaltwin of a real asset, a DPP could reward you for recycling a product by issuing a token or by making its story digitally available as an NFT.”
The foundation concluded by stating that “IOTA will release the next generation Stardust Tokenization Framework protocol that will support these actions in a feeless + scalable manner w/o creating an additional carbon footprint.”