2024 saw a sharp rise in the application of blockchain, but in 2025, a new data capture method will enter the playing field - digital threads.

Digital threads are chains of information attached to a product that follows the item through its product lifecycle. This data collection begins when raw materials are extracted, continues to capture information through the value chain and concludes in the recycling or reuse stages. 

For companies using a tech-driven model of sustainability, digital threads give greater visibility of production efficiencies and opportunities for waste reduction.

Digital threads don’t work in isolation. They gather and distribute information for other applications such as CAD systems, production line machinery and Enterprise Resource Planning (ERP) tools. But it is the digital twin that benefits most from the digital thread. Digital twins receive a real-time flow of information about the pre and post-production stages via the digital thread.

In aerospace, this process is used to optimise product design. Whereas digital twins simulate performance, digital threads simulate the production process, giving engineers an end-to-end view of the product lifecycle. Since these simulations have begun in the value chain, when an engine reaches production, there is no wastage from testing materials. Reducing wastage is essential when the resulting product is a high-value engine made from expensive materials.¹

Gathering information along production nodes will be familiar to Blockchain users, but there is a notable difference. Digital threads are platform agnostic, whereas blockchain nodes require all suppliers along the chain to use the specific technology. 

It is this requirement that has hindered the widespread adoption of blockchain and allowed digital threads to rise in popularity.

Digital threads allow for faster, wider adoption based on the data collection methods that suppliers are already using. However, this unstructured data across multiple platforms and vendors can be messy and insecure. Blockchain solves this challenge through its uniformity and security. 

Another key hindrance to blockchain is the shortage of people who know how to set up, deploy and monitor the system. Conversely, digital threads will be used by data scientists, technologists and engineers, giving a far greater pool of potential talent to train as the project leader.

Blockchain is considered to be highly secure and has delivered a 65% year-on-year decline in illicit cryptocurrency transactions.² However, for companies without the talent to deploy blockchain, robust cyber security allows them to adopt digital threads earlier than otherwise possible.

Fortified cloud security means that once the data storage is secured, companies can gather information at a greater depth from their digital threads.

Combined with a digital twin, digital threads allow companies to build sustainability into their supply chains. 

While a digital twin creates a virtual copy of a physical place or process, a digital thread supplies the information that exists outside that framework. If the digital twin is a warehouse, the digital threads will provide information on logistics suppliers, components, and material sources for the products within that warehouse. This allows companies to gather information about wastage and efficiency, such as which product components have the most air miles. From there, they can source a local supplier to help reduce the carbon impact. 

The insights from digital threads also support a circular economy by helping manufacturers choose materials and components with better durability and recyclability. 

Almost 75% of engineering, manufacturing, service and IT leaders report that better data utilisation would help them address market disruptions.³ Digital threads help deliver on this promise by providing interconnections in the tech ecosystem, in turn helping these professionals build resilience in an increasingly volatile marketplace.

Supporting these ambitions are products like SD-WAN, which provides a consistent, reliable network at all times and enables the information gathered from digital threads to flow without interruption. 

For digital threads to be successful, they must integrate with existing technologies in the ecosystem. For manufacturers, their CAD systems, manufacturing analytics, resource planning and assembly simulations will need data interoperability to build effective threads. Unifying products such as Singtel CUBΣ help build that secure connectivity where digital threads can operate. 

CUBΣ is a dynamic, scalable suite of network solutions powered by virtualisation for enhanced edge-to-cloud experiences, flexible consumption, and sustainable operations. It is these features that make it ideal for supporting digital threads. 

For innovation-led, sustainability-conscious companies, digital threads will be a tool for growth. Building the right ecosystem to support that growth is essential. 

As networks become more sophisticated and API capabilities expand, early adopters will gain significant advantages in security, efficiency, and innovation. For IT teams, the message is clear: telco APIs are not just another integration point—they’re a strategic asset that can fundamentally enhance how applications and services are delivered.

Singtel delivers a suite of APIs, such as Number Verify, Device Location, and Scam Sniffer, to ensure your business innovates with security.

As the ecosystem matures and opportunities for innovation continue to expand, the time to start exploring these capabilities is now.