A competency-based approach to education (CBE) has emerged in recent years, fostering curriculum by tracking and indicting students' acquired skills and competencies. Since applied education is moving away from a theoretical approach to its application, employers are eager to be empowered with graduates' full e-profiles, which demonstrate candidates' competency-based strengths and weaknesses. This study considered a new digital system for competency-based learning, enhanced by Blockchain and badge technologies, to improve and indicate practical classes' quality in applied programs. Our core objectives were to promote the digitalization of competency-based education and students' e-portfolios as a proposed system in applied education. We also assessed its implementation, beginning with a learning gap analysis and moving on to discuss the digital CBE to support employers' ability to validate graduates' competency-based credentials acquired through their signature learning experience. We found that the digitalization of skills and competency-based credentials should be enhanced to foster knowing-by-doing and practical capabilities, which should be incorporated in applied education to achieve optimum CBE results and support recruitment and professional development processes. Further research and study are recommended to develop and unify standards adopted by the Higher Education Institutions (HEIs), that are recognized by the industries.