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14 Aug 2024

Beyond EU compliance: DPP ecosystems

DPP
4.5 min read. 931 words.Kasper Karimaa, Juuso Heikkilä, Elli Jaakola, Rasmus Haikka

Introducing the TREE® protocol

Identifying business opportunities that go beyond merely complying with the upcoming EU legislation is crucial to making the twin transition both effective and sustainable. The twin transition refers to the simultaneous shift towards a more sustainable and digital society, where each transition reinforces the other. STRGL is at the forefront of this transition.

Over the years, STRGL has been deeply involved in research and development in blockchain-native innovation and actively contributing to European regulation and standardization efforts. As a result, STRGL is now at the forefront of shaping the emerging data economy. In an era of rapid technological change, we’ve made sustainable digital transformation a priority, with in-house product development becoming central to our mission of addressing global challenges in a practical, solution-focused way.

We are proud to finally officially announce the TREE® protocol.

Explore TREE: treeprotocol.xyz

Shifting brand experience

TREE® technology is fundamentally shaping the future of consumption. Consumers increasingly seek a sense of belonging, self-expression, and meaning. When it comes to the future of brands creating new products to fulfill these needs, there is an opportunity to shift away from purely relying on virgin materials and traditional product transactions. The most resource-intensive industries require alternative business models that can meet consumer needs without resorting to physical transactions unless necessary.

Without TREE:

before tree

The TREE® protocol enables a digital ecosystem that adds value to a brand’s physical business by meeting DDP requirements in an innovative way. At its core, it extends the current brand experience, by offering brands the opportunity to seamlessly continue both complementary and paid user journeys in an intuitive manner.

With TREE:

after tree

Blockchain technology and the TREE® protocol

The TREE® protocol acts as a bridge between the DPP service provider and a blockchain. Blockchain technology is essentially an interoperability layer for the internet – it doesn’t replace existing services as we know them, but unlocks a whole new set of opportunities through its core features. Blockchain enables sustainable data economy innovation by ensuring that all parties in the ecosystem operate under the same rules and shared knowledge across platforms.

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Moreover, the legal demands for DPP set by the EU call for interoperability, immutability and data durability. These requirements are inherent in blockchain’s basic premises, making it a well-justified choice of technology.

Use cases in growing TREE® ecosystem

The TREE® protocol is an open product data network, which extends the features of existing DPP service providers and enables brands to offer cross-platform benefits for consumers. The data space integrates product data systems with digital product passports, enabling data interoperability across limitless use cases.

We are currently piloting our first DPP provider integration with the environmental impact tool Vaayu. The first pilot brands are currently using the technology to develop their own ecosystems around the brand and product value. This enables brands to collaborate closely with companies that don’t directly compete with them but share the same values and consumer typologies. Together, the ecosystem is able to create cumulative value and combine the consumer groups.

Read more about the partnership: vaayu.tech/solutions/tree-dpp

As an European company, we’re honored to annouce our current contributions with VAIN, a Finnish fashion label, and Paloceras, a Swiss eyewear label, as two of our first partners to kickstart the ecosystems around their products.

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We have currently divided the ecosystem opportunities into three segments, including virtual use, extended commerce, and benefits. The first pilots will bring these opportunities to life as product specific game assets, super simple second hand listings for consumers, and digital magazine subscriptions as complimentary lifestyle benefits. We’ll unfold more during New York and Paris fashion weeks.

Brands implementing new technologies

From what we’ve observed, the primary bottleneck for new technologies in retail has been the lack of direct added value after the fun part – purchasing a product. There’s a lot of innovation happening driven by the free market and regulation, but the best inventions feel like they’ve always existed. The technology must intuitively change the way we operate today to support common goals for reduced consumption and increased circularity.

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Additionally, it is important that the implementation is straightforward. Instead of forcing an adoption of an entirely new platform, we’re building APIs like Lego bricks to snap together with the already existing solutions.

TREE® vision for the decentralized decade

The innovation will drive new and existing physical products into more sustainable life cycles. The utilization rate of a single product will increase through widespread adoption of secondhand and rental models, and sorting and recycling will become much more efficient as multiple innovations work seamlessly together from product data to chemical recycling and beyond. We’re moving into a phase where circular visions will become reality through strong components collaborating for the data ecosystem adoption.

For TREE®, we’re supporting this twin transition, through shifting the perspective on ways we capture brand value. And in the bigger picture, STRGL is working towards being part of the wider shift in the internet as we know it.

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STRGL

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