There are more and more technologies that, when applied to recycling, allow an optimisation of the sector’s resources. In this post we would like to talk about blockchain and how its use would affect the circular economy.
First, let’s start with a description of the blockchain concept: it is a set of technologies based on a mathematical structure that stores data. Its main value is that blockchain is unalterable, the information is spread in different nodes (teams or users) that validate these data through tokens and keep this information unchanged. This information management is done in a synchronised and decentralised way, which allows the verification of these data through an immutable record of the data.
How can blockchain help us? Let’s look at some examples:
- Information: the use of the blockchain system provides better, more comprehensive, complete, and validated information, which is a great incentive as it offers greater transparency to transactions.
- Traceability of materials: it would be possible to track the processes through which the different materials pass and what happens to them in different stages, thus maintaining the visibility of the value chain.
- Security: this validated information avoids users having to invest time and resources in verifying the information or items traded.
In short, this technology offers us the possibility of tracking and trading any element of value with a lower risk and operational cost. The use of blockchain could soon transform the way recyclers approach their work.