Originally published December 2021, at the height of the Web3 hype. Updated September 2026 with an honest look at what lasted.
Quick answer: What happened to Web3?
Web3 didn’t replace the internet as many predicted in 2021. Consumer decentralised apps and NFTs largely faded, and investment attention moved to AI. But some of the underlying ideas, such as verifiable and tamper-evident data, portable digital identity and records shared between organisations, are being adopted, often without blockchain. For UK businesses selling physical products into the EU, the most pressing example is the Digital Product Passport.
Key takeaways
- The “decentralised internet” didn’t arrive, but trustworthy, shareable data is now a real business requirement.
- Most problems once pitched as blockchain projects are better solved with well-governed databases and open standards.
- EU Digital Product Passports start with batteries in February 2027, with steel, textiles and other products to follow.
- Preparing is mainly a data problem: knowing what your products are made of and where the information lives.
What did Web3 promise in 2021?
In late 2021, Web3 was everywhere. Fortune reported that investors were betting $27 billion on it as the future of the internet. The pitch was a decentralised web built on blockchains, where users owned their data and digital assets instead of large platforms, with tokens, NFTs and community-run organisations (DAOs) replacing traditional business models.
How do the Web3 promises compare with reality?
2021 promise | 2026 reality |
|---|---|
A decentralised web replaces the big platforms | Didn’t happen. The large platforms remain dominant, and AI became the main focus of investment. |
NFTs prove digital ownership | The speculative market collapsed. Niche uses remain. |
Blockchain transforms supply chains | Many pilots stalled. The hard part was collecting good data from suppliers, not storing it. |
Users own their identity | Progressing through open standards for digital credentials and wallets, mostly without blockchain. |
Transparent, verifiable product data | Becoming law in the EU through Digital Product Passports. |
What is a Digital Product Passport?
A Digital Product Passport (DPP) is a digital record that travels with a product, usually accessed by scanning a QR code or similar data carrier. It holds information such as materials, origin, carbon footprint, recycled content and how to repair or recycle the product. The European Commission describes it as a digital identity card for products, components and materials.
When are Digital Product Passports mandatory?
- July 2024: the EU Ecodesign for Sustainable Products Regulation (ESPR), which sets the DPP framework, came into force.
- July 2026: the EU’s central DPP registry went live.
- 18 February 2027: battery passports become mandatory for electric vehicle batteries, light means of transport batteries (such as e-bikes) and industrial batteries over 2 kWh, under the EU Batteries Regulation.
- Next: product-specific rules for iron and steel are expected first, followed by textiles, tyres and aluminium. Each applies after a transition period of at least 18 months from adoption.
These are EU rules, but they apply to products placed on the EU market, so UK manufacturers and brands that sell into the EU will need to comply. Timelines for later product groups have already slipped and may move again, so check the latest position for your sector.
Do you need blockchain for a Digital Product Passport?
Usually not. Most DPP implementations use standard databases, web technologies and open data standards. A blockchain only helps in a narrow set of cases. Before choosing one, ask:
- Do several organisations need to write to the same record?
- Is there genuinely no party that everyone trusts to run the system?
- Would a shared database with access controls and audit logs fail to meet the need?
If the answer to any of these is no, a conventional, well-governed data platform is simpler, cheaper and easier to maintain.
How should businesses prepare for Digital Product Passports?
- Check your scope. Confirm which of your products, or your customers’ products, fall into upcoming categories, and when.
- Map the data required. Materials, origin, carbon footprint, recycled content, and repair and recycling information.
- Find where that data lives. Often it’s spread across ERP systems, spreadsheets and suppliers. This is usually the hardest step.
- Choose identifiers and data carriers. Decide how each product, batch or item will be identified and labelled.
- Build the pipeline and governance. Automate data collection, validate it, control access, and keep an audit trail.
Much of this overlaps with ESG reporting. If you already collect carbon and supply chain data, you have a head start. See Automating ESG Compliance: The Data Architecture Behind ESGHub and How IoT Devices Collect ESG Data for Sustainable Supply Chain Management.
How High Digital can help
We build data products and ESG data platforms that collect, validate and share product and sustainability data, using the simplest technology that does the job. Scope your project to talk about getting your product data passport-ready.
Frequently asked questions
Is Web3 dead?
The 2021 vision of a decentralised internet replacing today’s platforms didn’t materialise. Some underlying ideas, such as verifiable data and digital credentials, live on, often implemented without blockchain.
Does a Digital Product Passport need blockchain?
No. Most implementations use standard databases and web technologies. Blockchain is only worth considering when multiple parties with no trusted intermediary must write to the same record.
When do Digital Product Passports become mandatory?
Battery passports are required from 18 February 2027 for EV, light transport and larger industrial batteries. Other product groups, starting with iron and steel, follow as the EU adopts product-specific rules, each with a transition period of at least 18 months.
Do Digital Product Passports apply to UK businesses?
Yes, if they place in-scope products on the EU market, directly or through customers and distributors.
What is the hardest part of preparing for a Digital Product Passport?
Collecting accurate data from across your systems and supply chain. The technology for publishing a passport is the easier part.