Have you ever thought about it—do the brands even know where the raw materials for that pair of shoes you bought come from? This is not a joke—supply chains often extend ten layers deep (from raw material suppliers to manufacturers, logistics providers, and retailers), and information degrades at each layer. Big brands like Nike and Adidas face the same dilemma: fragmented data and transparency that’s essentially non-existent.

Recently, the EU has introduced a major initiative. All imported goods now require a DPP (Digital Product Passport), using data to prove that their carbon emissions meet compliance standards. This is a nightmare for traditional supply chains but an opportunity for blockchain.

There’s a project working on this—building a "Traceability Oracle Network." How does it work? Raw material suppliers directly read from chemical factory ERP systems to verify if recycled polyester fibers are used; manufacturing plants connect to smart meters to confirm electricity comes from solar energy; logistics providers calculate carbon emissions based on actual transportation distances. All these dispersed data fragments are finally aggregated into a "carbon map" on the chain.

What’s the consumer experience? After purchasing a product, scan an NFC chip, and your phone can access the complete on-chain data—not just marketing copy from the brand, but real, tamper-proof records: "The sole material of these shoes comes from a Vietnamese factory, which has been verified to operate with 100% green electricity." Consumers can also receive environmental points NFTs.

What is the most critical part of this business closed loop? Verified products can be exempt from the EU’s high carbon tariffs. This directly translates into cost optimization—compliance itself becomes a source of profit. Supply chains shift from black boxes to transparency, not only meeting ESG investor demands but also opening new pricing opportunities for brands.