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  • Writer's pictureHippolyte Robiot

Digital Product Passports: The Next Step in Ownership

Updated: Mar 15


What is a Digital Product Passport?

A Digital Product Passport (DPP) is a trailblazing documentation system residing on the blockchain, providing a unique digital identity for existing physical assets. Think of the DPP like a digital receipt, that stores all information about a given product. At any time the DPP also contains the information of who owns the item, any previous transactions, and much more, as an immutable record of its own existence.

Why do we need it?

This digital identity authenticates asset ownership, ensuring a new level of security and transparency for individuals and company supply chains alike. This increased trust in physical assets allows for increased visibility in both resale and supply chain, and solidifies digital asset ownership,

Securing Physical Assets; Digitally

How does it work?

A digital product passport involves creating a unique item on the blockchain which stores unique asset information, creating an unalterable record of ownership. By including the serial code of the item, the passport and asset are now linked in a transparent, secure, decentralized network, where everyone can identify the owner of a given item. This process guarantees the authenticity and security of tangible assets in the digital realm.

Brand benefits

As a company, having all of your items linked to individual digital product passports gives you many significant advantages: Full visibility into the status of your supply chain with perfect product identification & traceability, a new interactive user interface to give customers more advantages through the passport, and a fully interoperable digital ecosystem that can directly integrate into existing business software such as CRM, ERP, PIM, etc.

These logistical advantages can help boost operational efficiency significantly, but the advantages also come in the form of increased customer lifetime value, as the DPP acts as another CRM touchpoint for brands to communicate directly to DPP owners.

Having a DPP which belongs to an individual consumer of your brand also allows you to track sales and units sold into resale markets, as the DPP is sold alongside the physical asset, representing a true, transferable certificate of ownership.

Customer benefits

Power to the individual

From the customer’s perspective, using digital product passports represents more power over their purchase than ever before. Beyond the easily accessible product history & information, beyond the ability to prove and transfer ownership, customers receive an all-in-one access point to handle their physical product in both the real-life and digital space. Repairs, re-sell, theft declaration, warranty & insurance can be embedded into the DPP to provide easily accessible services that significantly increase a product's quality of enjoyment.

Elevated Experience

With DPPs customer experience can be elevated to the next level: purchases with a given brand can now be future discounts, access to exclusive content & products, entry to a branded event, anything that the brand desires can be connected as a customer advantage through a digital product passport. Customers can also be provided more assurance and transparency regarding the origin of products and the ethicality of their sourcing.

Integrating Insurance: The Avata Approach

As we step into a future defined by the crossing of physical and digital realms, the role of Avata stands prominent. Integrating insurance within digital product passports is a gateway to widespread adoption and secure development of DPP solutions, emphasizing trust, security and functionality. By embedding insurance and warranty offerings within the digital passport of a product, Avata empowers users to effortlessly report and claim damages or thefts. This symbiotic relationship between Avata and DPPs is where insurance meets assurance, propelling us into a future where every digital asset is safeguarded, recovering lost digital value is as easy as clicking 2 buttons, and the possibilities for protection are as boundless as the digital realm itself.

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