The Green Blockchains of Circular Economy

Abstract

Eco-friendly systems are necessitated nowadays, as the global consumption is increasing. A data-driven aspect is prominent, involving the Internet of Things (IoT) as the main enabler of a Circular Economy (CE). Henceforth, IoT equipment records the system’s functionality, with machine learning (ML) optimizing green computing operations. Entities exchange and reuse CE assets. Transparency is vital as the beneficiaries must track the assets’ history. This article proposes a framework where blockchaining administrates the cooperative vision of CE-IoT. For the core operation, the blockchain ledger records the changes in the assets’ states via smart contracts that implement the CE business logic and are lightweight, complying with the IoT requirements. Moreover, a federated learning approach is proposed, where computationally intensive ML tasks are distributed via a second contract type. Thus, “green-miners” devote their resources not only for making money, but also for optimizing operations of real-systems, which results in actual resource savings.

Challenges and Opportunities of Artificial Intelligence and Machine Learning in Circular Economy

“…All these methods offer high potential for obtaining accurate results and are occasionally combined in the research design with each other or with other techniques. For example, [57] propose an approach in which they combine Blockchains and Federated Learning to optimize recycling processes, extend the life of electronic devices, and improve the e-waste management. For sorting COVID-related medical waste, [58] apply Ensemble Learning using image and text features along with multiple feature extraction methods and train four classifiers (K-NN, 2 x SVM, ANN) to obtain the final result by majority voting.…”

Enhancing circular economy practices through the adoption of digital technologies

“…Hatzivasilis et al (2021) mention that a circular business model that works with IoT technology has significant advantages in the use of Blockchain since a distributed ledger of assets makes it easier for asset owners to exchange these elements throughout the CE loop, monitoring occurs of products to extend the useful life of electronic assets, improve the management of electronic waste and increase the economic function of the organisations and the machine learning improves the performance of green computing operations on monitored devices.…”

“…, Blockchain technology has many advantages in the management of the energy sector if evaluated from a CE perspective and in ensuring sustainability, since Blockchain technology has the necessary mechanisms for the transition from the linear model to the circular model with full compatibility in security, visibility, transparency, immutability and decentralisation mechanisms.Blockchain has potential applications in the field of energy, such as recognising consumption models, smart contracts and intelligent metering, micro energy payments, payment platforms for prepaid meters, machine learning and AI techniques that enable the supply of unique energy products, in addition to added value in the areas of sales and marketing.According toKouhizadeh et al (2020) andZhang et al (2019), the transparency, reliability and automation of information provided by the Blockchain can leverage CE initiatives since the source of materials and products, stakeholders, processes, energy consumption and the end of the cycle of life are information that can be made available in distributed ledgers. Blockchains are known to be effective in trustless institutional environments, where technology can enable effective governance and more significant interaction between manufacturers and users of products and services(Pilkington, 2016) Hatzivasilis et al (2021). mention that a circular business model that works with IoT technology has significant advantages in the use of Blockchain since a distributed ledger of assets makes it easier for asset owners to exchange these elements throughout the CE loop, monitoring occurs of products to extend the useful life of electronic assets, improve the management of electronic waste and increase the economic function of the organisations and the machine learning improves the performance of green computing operations on monitored devices.…”

Real Business Applications and Investments in Blockchain Technology

“…The provenance issue arises precisely in several projects of traceability of both tangible and intangible goods [31,32]. Several projects focused on the origin of the materials used in the industrial or construction process were also studied, all of them linked to the circular economy [33,34].…”