Circular Economy solutions need programmable trust. The long-running transactions between low-trust parties can be economically accomplished with a blockchain solution. The tamper-proof properties of the blockchain technology enable transfer of value and creation of irrefutable claims. The Circular Economy solutions with ambition to scale should incorporate these fundamentals early into their product journey to enable participation in yet to be developed networks.
Read the full blog here. It covers the simplistic example of a circular economy using reusable tare, discusses why brands are focusing on sustainability, and compares the take-make-waste model to circularity represented by the butterfly diagram. The blog continues with two key components required for instrumenting products for programmable trust: transparency and programmable identity.
On Transparency: Public blockchains play a key role. Product manufacturers, their ingredient suppliers, and other supply chain participants produce verifiable claims that link to the product. In some cases the claims cascade all the way down to the original sources. The tamper proof properties of public Ethereum blockchain can give each ingredient and manufacturing process step defensible protection with digitally signed accountability for the data and the overall product itself. This is because each data point is sealed with a digital fingerprint that belongs to a person or an organization performing a specific action. The evidence of signed data or action is stored on an always on (100% uptime) public blockchain which provides instant traceability and guarantee of irreversibility. These properties mean you can trust the integrity of the information.
On Programmable Identity: The circular economy business models require long running transactions and guarantees that something will occur even if a product is outside of direct control of the manufacturer or a reseller. For the circular business models that require a product to be returned to a designated entity, how do you increase chances of that happening? This can be done by giving each product a programmable identity in a form of a token. A digital token is simply a representation of a product or its parts. The power of a public blockchain solution comes from creating programmable actions associated with a token. The token is physical to digital bridge that can power the circular economy use cases where the customer behavior needs be encouraged through incentives that are locked into a token. Since tokens are transferable when a product changes hands the token and the associated history of actions and rewards can be transferred as well. Since no personal data is stored to make this solution work this GDPR compliant history can give manufacturer insights into the product usage beyond the first customer.
Read the full blog here to see how a Treum.io solution can make this a frictionless process.