At their most basic level, digital badges are a new way to capture and communicate what an individual knows and can demonstrate. This report examines the nature, value, and potential impact of digital badges, an emerging electronic form of recognition of an individual's knowledge and skills. Badges can represent different levels of work and engagement, including more granular skills or achievements, marking in some cases small and/or very specific abilities. For this reason badges hold particular promise for certifying the skills of adult learners in basic education programs, many of whom have few, if any, formal credentials (such as diplomas), but who are obtaining functional skills that would be valued in a workplace setting if a mechanism for certifying those skills and knowledge was available. This report explores the potential and opportunities for developing and implementing a system of digital badges for adult learners. This report begins with an Executive Summary that covers the definition and purpose of digital badges, their value and potential impact on the field of adult education, and the implications and recommendations for the field to consider. Following the Executive Summary, the report is organized into four chapters that explore how badges can advance the aims of the adult literacy system. Chapter 1 introduces the structure, current use, and examples of existing digital badge models. Chapter 2 explores the value, impact, and potential of badges for supporting the advancement of learner outcomes, including existing technologies for badges. Chapter 3 discusses opportunities and potential for using digital badges with adult learners, including steps to implement them within the adult education system. Chapter 4 examines the considerations and recommended actions to make digital badges a reality in adult education and addresses issues related to policy, practice, and resources.