Although blockchain technology became known as a result of cryptocurrencies, there are different fields in which it can be applied; one of these fields is the “circular economy,” which consists of the possibility of being able to take advantage of resources in a way more efficient, making use of technology, which allows a reduction in costs for all the actors involved.
A circular chain is a platform based on the blockchain ecosystem, in which companies, institutions, and organizations seek to support various activities such as waste selection, improve the efficiency of processes, or speed up the launch of environmental campaigns, all this through transparency in operations and awareness in the use of resources, which will bring the unavoidable consequence of reducing costs.
How does Circular Chain work?
It is a network of distributive registries that aims to help companies, institutions, local entities, operators, and other organizations to be involved in the field of caring for the environment, in addition to sharing and controlling safely and immediately all the data associated with the recycling process and the selection of waste, in addition to speeding up all the transactions related to it.
The platform provides the record of modifiable information about the operation, which includes, among other data: plant, withdrawal identifier, material, non-conformities, or any other type of associated information that ensures the existence of an adequate document that allows corroborating if it occurs—some kind of alteration at any moment of the process.
The technological contribution
Thanks to blockchain technology, transparency in the processes are guaranteed. A constant audit of the operations and transactions carried out by the members involved in the process will allow them to unavoidably fulfill their commitments. The idea is that more companies and organizations can be incorporated to build a blockchain network of circular economy in the future. This also represents a great challenge for technological innovation.
Often there are various discussions about the exchange of data that occur in different processes at a global level, about who is the owner of certain data (in addition to the different security problems that may arise); due to this, it is necessary to create “spaces of neutrality” in which the different companies, institutions, entities, and agencies can trust that such information will be used appropriately. In this aspect, blockchain technology comes into play, allowing the creation of transparent spaces and insurance for the control or management of this type of data.
What do you think about this topic? Did you know that blockchain technology could also be used to benefit the environment? What is your opinion about this type of technology and its contribution to the environment?
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