“Growing Integration of Blockchain for Transparency and Product Lifecycle Tracking”
- A significant and accelerating trend in the global digital circular economy market is the integration of blockchain technology to enhance transparency, traceability, and trust throughout the product lifecycle. This shift is enabling businesses to track material origins, usage, reuse cycles, and responsible disposal with high accuracy, thus reinforcing the foundations of circularity
- For instance, IBM’s blockchain-based supply chain platform helps companies monitor product lifecycles and material recovery, improving compliance with ESG goals and regulatory standards. Similarly, SAP’s blockchain-enabled digital product passports allow manufacturers to embed lifecycle data in products, ensuring circular usage and accountability
- Blockchain's decentralized ledger structure facilitates tamper-proof data sharing across stakeholders from raw material suppliers to recyclers enhancing operational efficiency and reducing greenwashing risks. Smart contracts within blockchain also automate compliance checks, certification processes, and ownership changes in reuse or remanufacturing scenarios
- The fusion of blockchain with IoT sensors and cloud platforms enables real-time circular tracking, giving manufacturers, regulators, and consumers actionable insights into product sustainability performance. This is particularly relevant in sectors such as electronics, textiles, and construction, where managing reverse logistics and second-life use is complex
- Companies such as Circularise and Everledger are deploying blockchain to authenticate recycled content, trace supply chains, and offer end-to-end visibility for brands aiming to meet circular economy benchmarks
- As demand for ethical sourcing, extended producer responsibility (EPR), and product circularity increases, blockchain’s role in ensuring data integrity and accountability will become a core pillar of digital circular economy frameworks globally
