As sustainability becomes a cornerstone of consumer decision-making, brands are increasingly adopting Digital Product Passports (DPPs) to showcase the transparency and traceability of their products. Many luxury and slow fashion brands have turned to blockchain-based consortiums like Aura—used by brands such as Mercedes-Benz and Tod’s bags—to prove their sustainability credentials. However, these blockchain-based solutions often raise sustainability concerns due to their reliance on energy-intensive mining processes. At DMZ INTERNATIONAL, we advocate for using Hedera’s Distributed Ledger Technology (DLT) powered by HBAR for DPPs, as it offers a truly sustainable and efficient solution. This article will explain why Hedera-based DLT is the superior choice for proving sustainability, especially in the fashion industry.
Understanding the Basics
What Are Digital Product Passports (DPP)?
DPPs are digital documents that provide comprehensive information about a product’s lifecycle, including its origin, manufacturing process, and environmental impact. They use advanced technologies like blockchain and DLT to ensure transparency and immutability.
What Is a Blockchain-Based Consortium?
A blockchain-based consortium, such as Aura, is a collaborative platform where multiple organizations share a blockchain infrastructure. These consortiums aim to provide a secure and transparent platform for data sharing among stakeholders.
What Is Hedera Hashgraph?
Hedera Hashgraph is a next-generation DLT that operates on a unique consensus algorithm called Hashgraph. Unlike traditional blockchains that require mining, Hedera uses a Directed Acyclic Graph (DAG) structure, which is faster, more secure, and energy-efficient.
Why Blockchain-Based Solutions Fall Short of Sustainability
- Energy-Intensive Mining:
- Traditional blockchain technologies like Bitcoin and Ethereum use Proof-of-Work (PoW) mechanisms, which require miners to solve complex mathematical problems.
- This process consumes enormous amounts of energy. For example, Bitcoin’s annual energy consumption exceeds that of some entire countries.
- Carbon Footprint:
- Mining operations contribute significantly to greenhouse gas emissions. According to the Cambridge Bitcoin Electricity Consumption Index, Bitcoin mining emits over 37 megatons of CO2 annually.
- Scalability Issues:
- Blockchain networks face scalability challenges, leading to slower transaction times and higher energy consumption as the network grows.
- Limited Accessibility:
- The costs associated with maintaining blockchain networks are often prohibitive for small businesses, limiting their adoption in industries like handloom and slow fashion.
The Hedera Advantage
1. Energy Efficiency:
- Hedera Hashgraph uses an asynchronous Byzantine Fault Tolerance (aBFT) consensus algorithm, eliminating the need for mining.
- According to Hedera, its energy consumption per transaction is just 0.00017 kWh—far lower than Bitcoin (1,735 kWh) or Ethereum (62.56 kWh).
2. Speed and Scalability:
- Hedera can process up to 10,000 transactions per second (TPS), compared to Bitcoin’s 7 TPS and Ethereum’s 15-20 TPS.
- Faster transaction times mean reduced energy usage per transaction and a better user experience.
3. Cost-Effectiveness:
- The cost per transaction on Hedera is negligible, making it accessible to small and medium-sized businesses, including handloom cooperatives.
4. Environmental Impact:
- Hedera is a carbon-negative platform, offsetting more carbon than it produces through verified carbon credits.
Why Handlooom.com and DMZ INTERNATIONAL Use Hedera for DPPs
Aligning Technology with Sustainability Goals
Handlooom.com’s mission is to promote sustainability through transparency and traceability. Using Hedera-based DPPs ensures that our commitment to environmental responsibility extends to the very technology we use.
Supporting Small-Scale Artisans
The low costs and high efficiency of Hedera make it ideal for supporting small-scale artisans and cooperatives, enabling them to showcase their sustainable practices without incurring prohibitive costs.
Setting a Standard for the Industry
By leveraging Hedera’s technology, we aim to set a benchmark for other brands to follow, ensuring that sustainability claims are backed by truly sustainable technologies.
Case Studies and Examples
Mercedes-Benz and Aura
Mercedes-Benz, a user of the Aura blockchain consortium, has faced criticism for its reliance on energy-intensive blockchain technology to prove sustainability. While the intentions are good, the underlying technology undermines their environmental claims.
Hedera in Action
Several organizations have adopted Hedera for its energy-efficient and cost-effective solutions. For example, Avery Dennison uses Hedera to power its atma.io connected product cloud, enabling brands to track the lifecycle of billions of products with minimal environmental impact.
Conclusion
Using energy-intensive blockchain technologies to prove sustainability is counterproductive. Hedera Hashgraph’s energy-efficient, scalable, and cost-effective DLT provides a viable alternative that aligns with the principles of sustainability. Handlooom.com and DMZ INTERNATIONAL’s adoption of Hedera for DPPs reflects our commitment to genuine environmental responsibility and sets an example for the entire fashion industry.
For brands serious about sustainability, the choice is clear: Hedera-based DPPs are the future. They not only prove your product’s sustainable path but do so without adding to the environmental burden.