Digital Product Passport (DPP): A Comprehensive Guide

How Verifiable Credentials Are Redefining Trust, Compliance, and the Circular Economy

By Bitviraj Technology

Digital Product Passport (DPP): A Comprehensive Guide

How Verifiable Credentials Are Redefining Trust, Compliance, and the Circular Economy

Executive Summary

Digital Product Passports (DPPs) are no longer a future concept — they are becoming a regulatory and business reality, especially across Europe. But while many organizations view DPPs as just another compliance obligation, at Bitviraj Technology we see something far bigger.

When Digital Product Passports are combined with Verifiable Credentials (VCs) and Decentralized Identity (DID) frameworks, they evolve from static data repositories into living, trustworthy, privacy-preserving digital identities for products.

This convergence creates a new foundation for:

•

Trusted sustainability claims

•

Automated regulatory compliance

•

Secure supply-chain transparency

•

Scalable circular-economy business models

This blog explores how VC-enabled DPPs work, why they matter, and how organizations can practically implement them.

Part 1: Understanding Digital Product Passports (DPP)

What Is a Digital Product Passport?

A Digital Product Passport is a structured digital record that follows a product throughout its entire lifecycle — from raw material sourcing to manufacturing, distribution, usage, repair, reuse, and recycling.

At its core, a DPP captures:

Product identity and authenticity

Material composition

Environmental footprint

Repairability and durability data

Compliance with regulations

End-of-life instructions

Unlike traditional documentation (PDFs, spreadsheets, certificates), a DPP is machine-readable, updatable, and accessible across borders.

Why Governments Are Mandating DPPs

The European Union's Ecodesign for Sustainable Products Regulation (ESPR) is the strongest signal yet that sustainability data must be:

Standardized

Verifiable

Digitally accessible

Priority product categories such as batteries, electronics, textiles, construction materials, and vehicles are being phased into mandatory DPP adoption between 2024 and 2030.

For businesses, this means: Sustainability data is no longer optional — it must be provable.

Part 2: The Missing Trust Layer in Traditional DPPs

Most early DPP implementations rely on:

Centralized databases

Manually uploaded certificates

Self-declared sustainability claims

This approach creates serious limitations:

•

Difficult to verify authenticity

•

High risk of greenwashing

•

Poor interoperability across borders

•

Limited privacy for suppliers

This is where Verifiable Credentials and Decentralized Identity fundamentally change the architecture.

Part 3: Verifiable Credentials & Decentralized Product Identity

What Are Verifiable Credentials (VCs)?

Verifiable Credentials are cryptographically signed digital claims issued by trusted entities and independently verifiable by anyone — without relying on a central authority.

In a DPP context, VCs can represent:

Material origin certificates

Carbon footprint calculations

Regulatory compliance attestations

Recycled content claims

Repair and maintenance history

Each product becomes a verifiable digital entity, not just a database record.

Product Identity Using DIDs

With Decentralized Identifiers (DIDs):

Every product gets a globally unique digital identity

Ownership, compliance, and lifecycle events can be cryptographically linked

Data remains tamper-proof and portable

A battery, garment, or electronic device can now "prove who it is" — digitally.

Part 4: From Static Data to VC-Enhanced DPP Architecture

Traditional DPP Data Model (Problematic)

{
  "product_id": "123456",
  "manufacturer": "Company A",
  "materials": [{"name": "steel", "percentage": 60}],
  "carbon_footprint": 150,
  "compliance_cert": "certificate.pdf"
}

No cryptographic proof

Certificates can be forged

Data trust relies on the platform, not the claim

VC-Enhanced DPP Model (Trust-Native)

{
  "type": ["VerifiableCredential", "ProductPassport"],
  "issuer": "did:web:manufacturer.com",
  "credentialSubject": {
    "id": "did:product:eu:battery:SN123456",
    "carbonFootprint": {
      "value": 150,
      "unit": "kgCO2e",
      "verification": "did:web:tuv.com"
    }
  },
  "proof": {
    "type": "BbsBlsSignature2020"
  }
}

Cryptographic authenticity

Independent verification

Cross-border interoperability

Automated compliance checks

Part 5: Privacy-Preserving Sustainability with Zero-Knowledge Proofs

One of the biggest concerns in supply chains is data confidentiality.

Selective Disclosure

Different stakeholders see different data:

Regulators → Full compliance details

Consumers → Sustainability summary

Recyclers → Material composition

Competitors → Nothing sensitive

Zero-Knowledge Proof Example

A supplier can prove a claim without revealing exact numbers:

Battery contains >50% recycled materials

- Verified without exposing exact percentage

This enables: Supplier confidentiality • Regulatory compliance • Trust without data leakage

Part 6: Real-World VC-Enabled DPP Implementations

Battery Passports (Global Battery Alliance)

Before

Centralized databases

Manual audits

Long verification cycles

With Verifiable Credentials

Verification time reduced from days to minutes

Data accuracy improved significantly

Cross-border acceptance increased

Supplier privacy preserved

Textile Passports & Circular Fashion

Using VC-based textile passports:

Fiber origin becomes verifiable

Chemical usage is auditable

Recycling rates dramatically improve

Counterfeit sustainability claims drop sharply

Consumers trust proof, not promises.

Automotive & Catena-X Ecosystem

VC-enhanced automotive DPPs enable:

Faster warranty transfers

Precise recalls by batch

Higher resale value through verified history

Usage-based insurance models

Part 7: The Business Case — ROI Is Real

New Revenue Opportunities Enabled by VC-Based DPPs

Verification-as-a-Service

Third-party sustainability claim verification

Data Marketplaces

Anonymized circular-economy insights

Premium Product Pricing

Verified sustainability commands 15–30% higher value

Secondary Market Certification

Trusted resale and refurbishment

Typical Payback Period

~9 months

3-Year ROI

~300%

(mid-sized manufacturers)

Part 8: Implementation Roadmap

Foundation
(2024–2025)

Product DIDs

Basic compliance VCs

Supplier onboarding

Expansion
(2026–2027)

Carbon footprint credentials

Repair & reuse data

ZKP-based privacy controls

Optimization
(2028–2030)

Full circular-economy integration

Automated compliance

Data marketplaces

Part 9: Challenges — And How to Solve Them

Challenge	Mitigation
Scalability	Batch verification, BLS signatures
Interoperability	Standard VC profiles, DID resolvers
Supplier readiness	Mobile-first onboarding
Legal recognition	eIDAS 2.0 alignment
Data quality	Multi-party attestations