Blockchain offers solutions for circular economies
The devastating effects of climate change urge us to reconsider our ways of production and consumption. A systemic change is required from our current economic model to a circular one. This motivation is compounded by the financial opportunity arising from the circularisation of production and consumption. A circular economy aims to transition from a ‘take-make-waste’ system to an ecosystem economy by ‘closing the loops’. This means limiting the environmental impact and waste of resources, increasing efficiency and profitability by creating value of what is otherwise considered wastage. This systemic change to a circular model implies the adoption of a new underlying infrastructure and rules for value chain stakeholders that currently go ungoverned. The decentralized and transparent nature of blockchain technology offers the perfect solution.