energies

Review
Implementation of Blockchain Technology in Waste Management
Katarzyna Bułkowska 1, * , Magdalena Zielińska 1 and Maciej Bułkowski 2

1 Department of Environmental Biotechnology, Faculty of Geoengineering, University of Warmia and Mazury

in Olsztyn, Sloneczna Str. 45G, 10-719 Olsztyn, Poland; [email protected]
2 Caruma Sp. z o.o., Obroncow Tobruku Str. 7, 10-092 Olsztyn, Poland; [email protected]
* Correspondence: [email protected]

Abstract: Implementing blockchain technology in waste management is a novel approach to environ-

mental sustainability and accountability challenges in our modern world. Blockchain, a technology
that enables decentralized and immutable ledgers, is now being re-imagined as a tool to revolutionize
waste management. This innovative approach aims to improve waste management transparency,
traceability, and efficiency, resulting in significant environmental and economic benefits. In traditional
waste management systems, the tracking and disposal of waste materials are not transparent and can
be vulnerable to fraud, mismanagement, and inefficiency. Blockchain technology provides a secure
and transparent platform for recording every step in the waste management lifecycle, from waste
generation to collection, transportation, recycling, or disposal. Every transaction in the blockchain is
recorded in a tamper-proof manner, enabling real-time monitoring and verification of waste-related
data. This paper introduces the concept of using blockchain technology in waste management. The
main goal of this work is to show the implementation of blockchain technology in an existing waste
management company, using smart contracts in the recycling process to provide transparency. Also,
the digital product passport was redefined in terms of circular economy and waste recycling.

Keywords: blockchain technology in waste management; digital product passport in circular economy
and waste recycling; smart contracts in waste systems; blockchain in recycling

1. Introduction
Citation: Bułkowska, K.; Zielińska, Efficient waste management has become a pressing global concern in an era of increas-
M.; Bułkowski, M. Implementation of ing urbanization and rapid population growth [1]. Over the past decade, cities around the
Blockchain Technology in Waste world have produced more and more waste, with negative impacts on both human health
Management. Energies 2023, 16, 7742. and the environment. It is estimated that the annual amount of solid waste generated
https://doi.org/10.3390/en16237742 worldwide will increase to 2.2 billion tonnes per year by 2025. On average, each individual
Academic Editor: F. Pacheco Torgal
generates between 0.11 and 4.54 kg of solid waste per day. Alarmingly, reports show that
33% of solid waste generated in urban areas is not disposed of in an environmentally
Received: 26 October 2023 friendly and safe manner [2].
Revised: 16 November 2023 Traditional waste management systems struggle to keep up with increasing waste
Accepted: 20 November 2023 volumes, so innovative solutions are needed to address this pressing issue. Moreover,
Published: 24 November 2023 waste management has faced various challenges, including difficult consumer behavior,
errors in waste sorting, insufficient facilities, recycling, and data protection policy [3].
Various countries have implemented innovative strategies and initiatives to improve
Copyright: © 2023 by the authors.
waste management. Japan is known for its meticulous waste separation system. Citizens
Licensee MDPI, Basel, Switzerland. are required to separate their waste into categories such as burnable, non-burnable, and
This article is an open access article recyclables [4]. South Korea implemented a pay-as-you-throw system, where citizens are
distributed under the terms and charged based on the amount of waste they generate. This incentivizes waste reduction
conditions of the Creative Commons and recycling [5]. Due to limited land space, Singapore has invested heavily in waste-to-
Attribution (CC BY) license (https:// energy plants. These facilities incinerate solid waste to generate electricity, reducing the
creativecommons.org/licenses/by/ volume of waste in landfills [6]. Germany has a successful dual system for packaging waste.
4.0/). Manufacturers are responsible for collecting and recycling their packaging materials. Yellow

Energies 2023, 16, 7742. https://doi.org/10.3390/en16237742 https://www.mdpi.com/journal/energies

Energies 2023, 16, 7742 2 of 18

bins are provided for packaging waste, and citizens are actively involved in sorting [7].
Sweden has been successful in using waste incineration not only for waste reduction
but also for heat and power generation. This approach has significantly reduced the
country’s reliance on fossil fuels [8]. Norway has a successful bottle recycling program
where consumers pay a small deposit on beverage containers. Returning these containers
to special reverse vending machines provides a financial incentive for recycling [9]. South
Australia implemented a successful container deposit scheme, where consumers receive
a refund for returning beverage containers. This has led to increased recycling rates and
reduced littering [10]. Moreover, it is also worth following the progress of the NEOM
project, which can become a global model for the cities of the future. The NEOM project,
a vision of the future of the city in Saudi Arabia, aims to create a place that will lead
the way in terms of sustainable development by combining advanced technologies with
adherence to the principles of a circular economy [11]. The use of blockchain technology can
revolutionize the management of resources, enabling complete transparency and tracking
of the product life cycle—from raw materials to recycling. The blockchain can also improve
the exchange and verification of emissions and waste data, which ensures reliability and
strengthens trust in the NEOM ecosystem.
Waste management’s disposal chain is a complex system involving many stakeholders.
Typical waste transfers involve citizens and industries; municipalities; outsourced entities
that collect and manage the bins; different centers that deal with collection, disposal,
and recycling; and producers of recycled waste materials that put new products on the
market [12].
The monitoring and recording of waste collection data plays a crucial role in ensuring
compliance with applicable laws and regulations. It also has the potential to provide
valuable insights that could influence future legislation and ultimately prevent the inef-
ficient disposal of waste through methods such as landfilling or incineration. However,
the process of tracking waste and monitoring ownership to generate these important data
are inherently complicated. Challenges can arise from a variety of sources, such as prod-
ucts breaking down into smaller components, existing laws such as extended producer
responsibility, which requires manufacturers to dispose of the subsequent waste from their
products, and the problem of the abandonment of ownership through littering or dumping.
Tracking waste and monitoring its owners currently requires more pragmatic solutions
than those currently in widespread use [13].
Waste management systems can be changed by using the advantages of blockchain
technology, which is a decentralized system for immutably recording data [14]. In this
context, blockchain technology has emerged as a transformative force, offering new ap-
proaches to improve the efficiency and sustainability of waste management [15]. From
secure and transparent transaction records to facilitating waste recycling, the opportunities
the blockchain offers are both profound and far-reaching.
The main advantages of implementing blockchain technology are that it can guarantee
safety and authenticity, verify that products are environmentally friendly, and help reduce
resource consumption and improve recycling performance [16]. Blockchain can potentially
affect the supply chain and enable quick and efficient information exchange between
parties [17]. Adopting a blockchain can be a game changer for the supply chain, removing
the traditional system’s flaws and inefficiencies.
This work has four fundamental objectives: (a) to present the prerequisites for the
use of blockchain technology in a circular economy, (b) to describe how a blockchain can
be used in the automation of processes related to waste management, (c) to detail the
necessary steps in the implementation of blockchain technology for transparent waste
management, and (d) to explain how blockchain technology can be used in the creation of
digital product passports.
Energies 2023, 16, 7742 3 of 18

2. Characteristics of Blockchain Technology

The prevailing data processing systems are mainly based on centralized architectures
within organizational units or cloud technology [18]. When a business process requires
interaction between multiple entities, communication solutions are added to enable these
interactions through specific communication mechanisms. However, centralization also
has drawbacks, such as potential points of failure, vulnerability to cyberattacks, and data
inconsistency [19]. This approach can drive up costs and complicate systems. Participants
must rely on trusted intermediaries to act as arbiters and approve transactions or verify the
origin and accuracy of data.
Blockchain is a system based on a database network that allows all participants to
record, disseminate, and store information effectively, securely, and equally [20]. Moreover,
it is a system that operates without a central administrator or manager, in which all data
history is available at all times and in which information, once stored, cannot be changed.
In other words, it is a system designed so that the information stored and transmitted over
the network has a high level of credibility and security, and network participants have
transparent access to a common, trusted source of information [21].
A blockchain database can be defined as a sequence of data blocks that are tightly
linked (Figure 1). Each block contains elements such as data, a block identifier (hash), and
the identifier of the previous block [22]. Any change in data in a block is immediately
detected due to inconsistencies in the structure of the entire chain. The chain’s integrity is
constantly monitored by all network users [23].

Figure 1. Scheme of a sequence of data blocks in blockchain technology.

Figure 1. Scheme of a sequence of data blocks in blockchain technology.
In an operational sense, the blockchain is a distributed multi-user database managed
by a network of computers operating according to a specific blockchain protocol [24]. Each
network node has its own copy of the database, operates it with equal rights, and can
initiate and verify changes. Everyone has access to the database, but no one controls it, and
consensus enforced by the protocol makes all changes. The main features of the blockchain
are its immutability and transparency. Network participants immediately detect and reject
any attempt to interfere with previously stored data [25].
Finally, it is important to emphasize that the distributed environment means that each
participant owns a complete copy of the blockchain (Figure 2). This makes the system
resistant to failures and attempts to centralize control. All changes are made based on
consensus among network participants. Thus, the blockchain provides a reliable and
transparent source of truth for all participants [26].
OR PEER REVIEW
Energies 2023, 16, 7742 4 of 18

Figure 2. The Figure

environment of blockchain
2. The environment technology.
of blockchain technology.

3. Types of Blockchain Technology

3. Types of Blockchain Technology
Blockchain technology can be used for public registers available to the general public.
Although encryption techniques may protect certain data in this registry, its origin is
Blockchain technology
verifiable from availablecan be used
records. forthispublic
To inspect registers
data, there available
are tools such to the gen
as a blockchain
explorer or dedicated data extraction and analysis software [27].
Although encryption techniques
When choosing blockchainmay protect
technology certain
for a specific data in
application, it isthis registry,
crucial to deter- its o
ifiable from mine
available records.
the appropriate To type.
blockchain inspect this
There are data,
three there are tools such as a
basic types:
Public Blockchain: This is characterized by an open structure that anyone can connect
explorer or dedicated data extraction and analysis software [27].
to. It operates in a decentralized and autonomous manner, not subject to the control of
When choosing blockchain
any central entity. technology
Decisions regarding for a specific
its development are made application,
democratically by it theis cruc
user community.
mine the appropriate blockchain type. There are three basic types:
Private Blockchain: This is a dedicated solution, most often created for a specific organiza-
tion or consortium of enterprises. Access is strictly limited, and the network is managed
Public Blockchain: This is characterized by an open structure that anyone can
under the supervision of a designated unit or group.
It operates inHybrid
a decentralized and autonomous
Blockchain: This combines manner,
features of both types above. Itnot subject
is a specific formtoof athe co
private blockchain with a defined management policy. However, some parts of it can use
central entity. Decisions regarding its development are made democratically
the public network infrastructure, for example, to make settlements between participants.
community. Although originally created as the basis for cryptocurrencies, blockchain technology
has the potential
Private Blockchain: Thistoisrevolutionize
a dedicated many sectors of the economy.
solution, most oftenBy ensuring
createddata trans-
for a spec
parency and immutability, the blockchain can help trace the origin of products, which is
zation or consortium of enterprises.
particularly important Accessand
in the food, clothing, is pharmaceutical
strictly limited, and
industries. Forthe network
example,
in the healthcare space, the blockchain can store and share patients’ medical data while
under the supervision of a designated unit or group.
ensuring their privacy and security. In the energy sector, this technology can support the
Hybrid Blockchain:
developmentThis combines
of so-called features
microgrids, enable moreof bothenergy
effective types above.
exchange It isusers,
between a specifi
and support the entire process related to a circular economy [28]. The unique properties
private blockchain with a defined management policy. However, some parts o
of blockchain technology mean that it can play a key role in shaping the future of many
the public network infrastructure,
sectors of the economy (Figure 3).for example, to make settlements between p

Although originally created as the basis for cryptocurrencies, blockchain

has the potential to revolutionize many sectors of the economy. By ensuring
parency and immutability, the blockchain can help trace the origin of produc
particularly important in the food, clothing, and pharmaceutical industries. F
in the healthcare space, the blockchain can store and share patients’ medical
ensuring their privacy and security. In the energy sector, this technology can
Energies
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18

Life Science:
• Regulation Compliance
• Cybersecurity
• Product Safety
Manufacturing: Telecom, Media and Entertaiment:
• Proof of Authenticity • Transactions
• Supply Chain • Digital Identity
• Smart Contracts • Peer-to-peer Exchange

Automotive and Mobility:

• Proof of Ownership Energy, Utilities and Chemicals:
• Insurance Blockchain Use • Product Safety
• Smart Contracts Cases per Industry • Proof of Authenticity
• Accounting and Audit

Public Sector and Regulations:

• Document verification Consumer, Products, Retail, and Distribution:
• Proof of Ownership • Digital Identity
• Proof of Authenticity • Internet of Things
• Supply Chain

Financial Services:
• Trades and transactions
• Peer-to-peer Exchange
• Insurance and Proof of Ownership

Theuse
Figure3.3.The
Figure useofofblockchain
blockchaininindifferent
differentsectors.
sectors.Adapted
Adaptedfrom
fromPandey
Pandeyand
andSen
Sen[29].
[29].

4. European Green Deal

4. European Green Deal
The European Green Deal outlines a vision for a sustainable EU economy, encom-
The measures
passing Europeanacross
Greensectors
Deal outlines
like clean a vision
energy,for a sustainable
industry, EU economy,
infrastructure, encom-It
and finance.
passing measures across sectors like clean energy, industry, infrastructure,
notably addresses plastic and packaging waste through various initiatives. For instance, and finance. It
notably addresses plastic and packaging waste through various
the key component of the Circular Economy Action Plan targets resource-intensive sec- initiatives. For instance,
the key
tors, component
including of the
plastics. It Circular
sets a goal Economy
of achievingAction Planreusable
100% targets or resource-intensive
recyclable packaging sec-
tors, including plastics. It sets a goal of achieving 100% reusable
throughout the EU by 2030, introduces a regulatory framework for biodegradable and or recyclable packaging
throughout the EUand
bio-based plastics, by 2030,
sets out introduces
measuresatoregulatory
be implementedframework for biodegradable
concerning and
single-use plastics.
bio-based plastics, and sets out measures to be implemented concerning
The Green Deal’s ‘Farm to Fork’ strategy emphasizes sustainable agriculture and single-use plas-
tics.
food production to reduce the environmental impact of packaging and food waste. This
The Green
strategy Deal’sto‘Farm
is expected address to the
Fork’ strategy
issue emphasizes
of excessive plasticsustainable
packagingagriculture
driven by foodand
food
safety production
concerns. to reduce the environmental impact of packaging and food waste. This
strategy is expected
Furthermore, thetoCommission
address thesees issue of excessiveplastic
non-recycled plastic packaging
packaging driven
waste as a by food
potential
safety
revenue concerns.
source to support climate objectives in the budget. The Green Deal envisions a
Furthermore,
significant role for the Commission
private sectorsees non-recycled
in financing plastic packaging
the transition to a greenerwaste as a poten-
economy. This is
tial revenue
achieved bysource
adoptingto support
a clearerclimate objectives
classification in the budget. The
of environmentally Green Deal
sustainable envisions
business activi-
aties,
significant rolesustainability
integrating for the private intosector in financing
corporate the transition
governance, to a greener
and enhancing economy.
disclosure norms
This is achieved
for climate and by adopting a clearer
environmental classification
data applicable of environmentally
to companies sustainable
and financial busi-
institutions.
ness
Suchactivities,
measures integrating
could impact sustainability into corporate
companies’ obligations governance,
to disclose and enhancing
information dis-
regarding their
sustainability
closure norms efforts to reduce
for climate plastic usage [30].
and environmental data applicable to companies and financial
institutions. Such measures could impact companies’ obligations to disclose information
5. A Circular
regarding theirSystem as One efforts
sustainability of the Policies
to reduceofplastic
the Green
usageDeal
[30].
The circular economy is a key element of the Green Deal, which aims to create a
5.system
A Circular System
in which as Oneare
resources of used
the Policies
optimally of the
andGreen Dealwaste and consumption of
minimize
raw The
materials.
circular economy is a key element of the Green Deal,products
The circular economy promotes the idea that which aimsshould be designed
to create a sys-
to be durable, easy to repair and reuse, and fully recyclable.
tem in which resources are used optimally and minimize waste and consumption In the Green Deal, the circular
of raw
economy is
materials. considered
The one of the promotes
circular economy main mechanisms
the idea for thatachieving
productssustainable
should be development,
designed to
reducing greenhouse gas emissions, and protecting biodiversity.
be durable, easy to repair and reuse, and fully recyclable. In the Green Deal, the It also supports innovation
circular
and job creation
economy in recycling
is considered one ofand thethe circular
main economyfor
mechanisms sectors.
achieving sustainable develop-
ment,The circular
reducing economy offers
greenhouse an alternative
gas emissions, and to the linearbiodiversity.
protecting economic model It alsooutlined
supports by
Demestichas and Daskalakis [31]. This alternative model includes:
innovation and job creation in recycling and the circular economy sectors.
The circular economy offers an alternative to the linear economic model outlined by
Demestichas and Daskalakis [31]. This alternative model includes:
Energies 2023, 16, 7742 6 of 18

(1) Smart product manufacturing that maximizes the efficient use of energy, materials,
and resources while actively avoiding waste and pollution. It also includes concerted
action to minimize dependence on new and non-renewable resources.
(2) Extension of the life of products and their components to maintain their highest value
for as long as possible. This includes giving them multiple “lives” and optimizing
their use not only in their first life cycle but also in subsequent iterations.
(3) Harnessing the potential of materials once considered waste by regenerating natural
resources and restoring finite materials for later reuse.
In March 2020, the European Commission presented a new action plan for the circular
economy [32]. The Council responded to the plan in its conclusions of December 2020. It
also highlighted the role of the circular economy in ensuring a green recovery from the
COVID-19 pandemic. The plan proposes over 30 actions related to sustainable product
design, circularity in production processes, and empowerment of consumers and public
purchasers. Activities will cover sectors such as electronics and IT, batteries, packaging,
plastics, textiles, construction and buildings, and food.
The European Commission has recognized the circular economy as a key element
of the European sustainable development strategy. It adopted a package of measures to
accelerate Europe’s transition to a circular economy [33]. One of the main elements of this
action plan is to reduce waste, i.e., the amount of waste generated in Europe, by promoting
the recycling and reuse of materials and supporting the sustainable design of products
so that they are durable, easy to repair and, at the end of their life, recyclable. The key
action is to reduce the amount of single-use waste, especially plastic waste, by limiting the
production and use of disposable items. Other actions include promoting alternative waste
management methods, such as composting, recycling and energy recovery, and reducing
waste sent to landfills.
The circular economy is a production and consumption model in which existing
materials and products are shared and leased. However, the original design specifications
of a product can be used to facilitate different R-strategies like reuse, repair, or recycling for
as long as possible [34]. In this way, the life cycle of products is extended. In practice, this
means that waste is reduced to a minimum. When a product reaches the end of its life, its
materials are left on the market whenever possible. These can be used productively, again
and again, creating further value.
In February 2021, the Parliament passed a resolution endorsing the new Circular
Economy Action Plan (CEAP) [35]. This calls for additional measures to pave the way to a
carbon-neutral, environmentally friendly, toxin-free, and fully circular economy by 2050.
These measures include implementing stricter recycling rules and setting binding targets
for materials’ use and consumption by 2030.
In March 2022, the Commission took an important step by presenting the first set of
measures to accelerate the transition to a circular economy under the CEAP. These proposals
include initiatives to promote sustainable products, empower consumers to make a green
transition, re-evaluate regulations for construction products, and formulate a strategy for
sustainable textiles.
At the same time, the spread of digitalization has an ever-increasing impact on our
personal and professional lives. It has seamlessly integrated into almost every aspect
of daily life. In the Fourth Industrial Revolution (IR 4.0), the digitization of product
information will be pivotal. Blockchain technology is proving to be an important enabler
for the advancement of IR 4.0, and its application can create an ecosystem that connects the
Internet of Things (IoT) to the monitoring of product lifecycles and certification [36].
Currently, however, the lack of consistent and accurate information about resources,
products, and processes makes it impossible to quantify circular initiatives in many cases.
At the same time, discussions are ongoing about the transparency and information sharing
required to achieve a circular economy. Effective digitization of product and process
information to capture an entire product lifecycle is a hurdle that must be overcome to close
the gap between the conception of a circular economy and its practical implementation [37].
Energies 2023, 16, 7742 7 of 18

In addition, product-specific information requirements will ensure that consumers

are aware of the environmental impact of their purchases. All regulated products will be
provided with digital product passports. This will make repairing or recycling products
easier and track substances of concern along the supply chain. Labelling may also be
introduced. The proposal also includes measures to end the destruction of unsold consumer
goods, expand green public procurement, and incentivize sustainable products.

6. Smart Contracts
A key element of blockchain technology is smart contracts, which sometimes digitally
mirror real-world contracts. Smart contracts contain codes for agreements between parties,
monitor terms, and perform embedded functions. Smart contracts replace traditional
legal third parties with network consensus. They can increase efficiency and reduce
transaction costs because they automatically execute when certain conditions are met
and maintain digital records of rules and business logic. Smart contracts can also be
used for supply-chain process management and reengineering [38]. These contracts are
created jointly by participants in a network. They serve the purpose of facilitating peer-
to-peer transactions or remittances, as described by Wang et al. [39]. After a transaction is
completed, a corresponding block is generated and distributed across the network nodes.
Online merchants involved in the process can verify the transaction details to ensure the
integrity of the transaction data. Smart contracts function as programmable code that can
be executed automatically and as active participants. They can respond immediately to the
information received and carefully record and retain the value of the transaction.
Smart contracts adhere rigorously to predefined rules through the consistent moni-
toring of trigger conditions. They execute the corresponding code when conditions are
met and record the generated data onto the blockchain. In energy transactions, smart
contracts play a pivotal role in receiving and processing transaction information. They can
temporarily hold energy assets from buyers and sellers during transactions and carry out
operations based on pre-established transaction rules agreed upon by the involved parties.
Serving as fundamental and integral components of regional energy trading models, smart
contracts are poised to remain a prominent subject of interest in both blockchain and energy
research [40].
In waste management, smart contracts could play many key roles, such as automatic
verification and rewards. If a waste management system offers rewards for recycling,
a smart contract could automatically verify that a particular person is separating waste
correctly and provide them with appropriate rewards [41]. Smart contracts could also trace
the origins of waste, helping to identify and eliminate sources of pollution. They could
provide transparency in the recycling process, ensuring that waste goes to the appropriate
treatment sites and is not disposed of in unauthorized locations [42]. To help accomplish
this, wastes produced in various locations (e.g., factories, households, restaurants) can be
“tagged” on the blockchain system with a unique identifier. This identifier is immutable
and can be assigned to a specific waste source. As the waste passes through various stages—
from production to transport to processing—these activities are recorded on the blockchain.
Additionally, to optimize the entire process, a smart contract could be integrated with other
systems, such as fleet management systems for waste collection vehicles, allowing route
optimization and more effective resource management [43].

7. Implementation of Blockchain Technology in Waste Management

In combination with the Internet of Things (IoT), the blockchain can bring many
benefits. The IoT consists of physical devices, ranging from simple sensors and cameras to
advanced machines and devices, that communicate with each other via the Internet; this
allows the collection, analysis, and exchange of data in real time [44]. The main advantage
of IoT is the ability to automate and optimize processes, which leads to increased efficiency,
reduced costs, and improved quality of life [45]. Examples of IoT applications include smart
homes, health monitoring, advanced production systems, and vehicle fleet management.
Energies 2023, 16, 7742 8 of 18

Thanks to IoT, devices can collect data in real time and make decisions automatically. The
blockchain, in turn, ensures the security and immutability of this data, which is crucial
for many applications such as supply chain monitoring [46], asset management [47], or
product certification [48].
The blockchain can be used as a communication bus to enable the creation of digital
services and products and provide the necessary tools to create solutions. There are many
blockchain solutions on the market that can be used in various scenarios. For example,
IoTeX combines fast, secure blockchain technology with the IoT [49]. VeChain blockchain
specializes in enterprise-class solutions. Thanks to its stability and integration possibilities,
it is used to build solutions based on the supply chain and data integrity [50]. SkeyNetwork
blockchain provides technology that connects IoT devices to the blockchain. SkeyNetwork’s
Non-Fungible Tokens (NFTs) are proof of ownership due to smart objects in a network
having their unique token.
Applying blockchain technology to waste management can be observed as part of
the development of smart cities. These cities embody a conceptual urban development
model based on the utilization of human, collective, and technological capital to enhance
development and prosperity in urban agglomerations [51]. Despite the widespread use of
technology in smart cities, they can have problems with waste management [52]. These
cities generate domestic, commercial, medical, agricultural, and industrial waste. This
waste can be classified into various categories, including liquid and solid household waste,
medical waste, hazardous waste, recyclables, green waste, and electronic waste (e-waste).
It is often sent to landfills, waste recycling facilities, composters, and waste-to-energy
generation plants [53]. Including traceability and tracking capabilities is of great value in
validating the legitimacy of data on waste collection, processing, and transportation in
smart cities. These features enable real-time monitoring of the location and condition of
waste throughout its journey, i.e., from collection to sorting, transportation, treatment, and
disposal or recycling. Unlike current centralized waste data management systems that are
vulnerable to intentional or accidental tampering, these tracking capabilities improve the
integrity of the process [28]. Traceability is invaluable in facilitating identifying, storing,
and comprehensively managing data on activities and outcomes within waste management
processes. Key data points typically recorded during waste disposal include details such as
waste type, volume, pickup location, route information, updated transit times, and details
about the people involved in each waste disposal phase. Thus, blockchain technology has
great potential to replace the slow manual systems used in waste management in many
smart cities [54].
One of the ways that the blockchain can improve waste management is by creating
digital asset tokens (e.g., security tokens) associated with smart cities’ waste for tracking
and tracing purposes [55]. These tokens play a pivotal role in tracking recycled waste
materials. They significantly assist government agencies in reducing waste management
costs and streamlining business operations. Traceability ensures that waste generated
in smart cities is managed by established waste management guidelines to protect the
environment from pollution. It also enables users to monitor the lifecycle of smart city
waste efficiently [56].
Blockchain technology can identify the specific type of healthcare waste processed at
recycling facilities and then reused to manufacture medical devices and equipment [57].
The increased transparency in asset traceability enabled by the blockchain increases the
value of the waste supply chain. It minimizes the costs associated with waste management
processes such as collection, sorting, transportation, and processing [58].
Industries can use the blockchain to identify the origin and transportation route of
food scraps and waste to recycling facilities for fertilizer production [59]. Using these
data, they can build new fertilizer production facilities near waste sources to reduce
transportation costs.
The blockchain’s tracking capability allows users to record the location of trucks
transporting smart city waste in real-time, providing additional information such as optimal
Energies 2023, 16, 7742 9 of 18

routes and waste weight [60]. These data on the location of waste shipments ensure that
trucks drive in accordance with designated garbage collection points. This is especially
important when waste comes from different areas and communities. To increase human
safety, the blockchain can use sensors attached to garbage bags to verify that hazardous
waste remains separate from non-hazardous waste during transport [61].
The blockchain’s transparency and immutability make it useful for tracking the
amount of waste shipped, received, and recycled at recycling facilities, detailing the cre-
dentials and actions of waste handlers, and recording where waste is stored during the
separation, sorting, recycling, or disposal process. This identifier can be assigned to a
specific waste source. As waste passes through various stages—from production to trans-
portation to processing—all these activities are recorded in the blockchain [62]. Such an
identifier for waste in the blockchain system could take different forms depending on
the needs and specificity of a particular system. It could take the form of a QR code or
a special Radio Frequency Identification/Near Field Communication (RFID/NFC) chip.
Using a two-dimensional code, which can be easily scanned with a smartphone or a special
reader, it is possible to store large amounts of information and easily print it on various
materials. A QR code can be placed on product packaging that, when scanned, directs the
user to a blockchain record with information about the origin of the waste [63]. Regarding
RFID/NFC, items can be tracked remotely using radio waves [64]. The tracking process is
automatic, the solution is weatherproof, and the data can be stored directly on the chip and
connected to the blockchain as an NFT token. The choice of a particular identifier depends
on many factors, such as the type of waste, available infrastructure, cost, and security
requirements. Different identification technologies can also be combined, depending on
the needs of a particular waste management system.
A product-tracking ecosystem requires a combination of advanced technologies with
well-designed processes and extensive collaboration between all supply chain stakehold-
ers [65]. Using the above solution to ensure transparency in the recycling process is a
key element for sustainable waste management [61]. Modern societies are increasingly
emphasizing the responsible use of resources, and transparency of recycling processes is
one of the most important tools for gaining the trust of consumers and stakeholders.
An example of a solution implemented in some cities in Poland is the ability to
monitor the filling levels and collection of trash containers. Waste24, a waste collection
company, is working to achieve adequate recycling rates and make the whole waste
collection process smoother. For this purpose, it uses a blockchain in software for municipal
services and individual waste generators which improves the process of waste management
by increasing the transparency of the whole process; this is reflected in tools such as the
Waste Database. The combination of its proprietary software solution with the blockchain
supports transparent waste management, as all information about each participant in
the waste cycle is recorded in real-time. This allows one to accurately document what is
happening to the waste that is produced at any given time.
Waste24 focuses on waste disposal automation, which is a particular problem espe-
cially for large waste producers and enterprises with many branches. In the case of the latter,
waste collection is a factor that greatly affects costs. A blockchain in waste management
improves control over the expenses incurred for each waste collection [56]. Waste24.net
software is integrated with container fill sensors, informing users about any overflows. By
using blockchain solutions as a communication bus, communication barriers eliminated
due to time play an important role in the work of waste collection companies. Waste must
be collected within a relatively short window, so garbage trucks do not obstruct other
cars from moving on the streets. An indirect result of the work on a blockchain in waste
management is the “Digital Key” application, whose task is to open gates and garbage
shelters. This innovation significantly shortens garbage truck stops in front of properties
and improves traffic throughout the city. All Waste 24 solutions are based on the use of the
SkeyNetwork blockchain ecosystem. Thanks to the integration of intelligent IoT sensors,
the Waste.net system, and the SkeyNetwork blockchain, it is possible to constantly check
Energies 2023, 16, 7742 10 of 18

how much free space remains in the garbage bin of a given company, which not only makes
garbage collection more efficient, but also to reduces costs.
The above example shows that the modern market requires companies not only
to manage the supply chain effectively, but also to pay attention to sustainable devel-
opment and ecological responsibility. In this context, technologies such as IoT and the
blockchain are becoming increasingly attractive to enterprises seeking innovations in sup-
ply chain management.
With increasing environmental awareness and an emphasis on sustainable business
practices, real-time, closed-loop monitoring will likely become the standard across many
industries. As technology advances and the price of IoT sensors declines, the opportu-
nities for closed-loop applications will expand, bringing benefits to both businesses and
the environment.
Based on the immutable record of data and transactions, the blockchain can verify and
identify any missing waste by comparing the weight of received and shipped waste [66].
Blockchain platforms are preferred only if the organizations involved in a business process
are heterogeneous and have competing interests. Otherwise, centralized solutions are
more appropriate for implementing waste management services. Since waste management
involves organizations with competing interests, blockchain technology can offer unlimited
benefits to waste handlers.
Many waste materials’ service life and reliability vary and depend on the composition
and working environment of such equipment/products/materials. At the end of the life
of such materials, they should be recycled or disposed of responsibly at approved waste
recycling facilities. For example, many waste mobile phones contain expensive lithium and
cobalt materials that could be reused to manufacture new products after mobile phones are
discontinued [67].
Based on the food supply-chain system defined by Khan et al. [68], the process can be
redefined for a waste management system:
(1) Provider: In the context of waste management, this stage involves providing infor-
mation regarding the origin of waste, including details about the crops, the use of
pesticides and fertilizers, and the machinery involved. All transactions related to this
stage are recorded on the blockchain.
(2) Producer: In waste management, this phase focuses on gathering information about
the waste-producing entity, which may be a farm or a similar establishment. It includes
details about the farming practices, cultivation process, and weather conditions. This
information is documented for transparency and accountability.
(3) Processing: In waste management, this stage pertains to the processing facility where
waste is handled. It includes details about the facility itself, the equipment used, and
the specific processing methods employed. Transactions with waste producers and
suppliers are logged on the blockchain for traceability.
(4) Distribution: This phase involves managing the transportation and distribution of
waste. It encompasses information about shipping, routes taken, storage conditions,
and transit times at each stage of transportation. All transactions involving waste
suppliers and traders are recorded on the blockchain to ensure transparency and
accountability.
(5) Retailer: In the waste management context, this stage involves providing information
about the waste item, including its quality, quantity, expiry date, storage conditions,
and shelf life. These data are crucial for the proper handling and disposal of the waste.
(6) Consumer: This final stage allows the end consumer to access detailed information
about the waste item using a QR code on their mobile device. This information
includes the journey of the waste item from its source to the retailer, providing
transparency and building consumer confidence in the waste management process.
Therefore, reliable channeling of waste materials can lead to an environmentally
friendly and safe smart city. Producers of solid waste, such as scrap metal, car tires, and
smartphones, are usually required to monitor these materials after they have reached the
Energies 2023, 16, 7742 11 of 18

end of their useful life [69]. Technologies can help ensure that waste from all materials
sold is collected at waste treatment centers. The lifespan of each solid material device
and the overall supply in the market can ensure that the waste of all solid materials sold
is collected at waste treatment centers. Producers can collect waste through registered
retailers, designated collection sites, or authorized dismantlers/recyclers. Residential
waste channelization refers to the collection and processing of waste at a designated
waste treatment center. Centralized waste channelization solutions are costly and less
trustworthy [70]. In addition, such solutions cannot provide a reliable traceability of waste
channelization. Some challenges for centralized systems are complete control over waste
collection data, sensor credibility, fault tolerance requirements, and low robustness due to
non-replicable data.

8. Digital Product Passport

Digital Product Passport (DPP) is a blockchain-based end-to-end provenance and
traceability solution that allows companies to digitally record and share information about
the product to prove the product’s origin and sustainability. The solution provides easy
access to transparent product information for supply chain participants, supporting objec-
tives of circular economy goals provided by UE. Digital Product Passports can be linked
to the real world via innovative QR codes, NFC, and RFID, which are printed or placed
on the products. The Digital Product Passport concept revolves around the collection and
dissemination of product-related data throughout the lifecycle of a product. Its main objec-
tive is to equip all stakeholders involved in the life cycle of a product with the necessary
information to enable the implementation of a sustainable circular economy effectively.
Various types of DPPs are currently being developed, many of which are tailored to specific
sectors. However, it is worth noting that there is no universally accepted standard defining
a DPP’s exact format and structure [71].
The main objectives of the DPP are to improve the circularity of products and to
promote the transparency and traceability of products, materials, and components. To
achieve these goals, a DPP will likely include the following information, as outlined by
Jansen et al. [72]:
(1) Manufacturing data, including details about the composition of a product, the mate-
rials used in each component, details about the manufacturing process (e.g., joining
techniques, binders), and the physical and chemical properties of the materials used.
In addition, they may include information on whether these materials pose non-
hazardous or hazardous risks to human health or the environment.
(2) Usage data, i.e., the documentation of all product parts that have been replaced or
repaired during its service life.
(3) End-of-life data include documentation of the collection, sorting and treatment pro-
cesses during the end-of-life phase of a product.
(4) Lifecycle data, such as the sales volume of a product. These data can be used to predict
the expected waste generation at a given time and estimate the amount of resources
that can be recycled.
The DPP offers key benefits for the circular economy:
Transparency: DPP provides complete information on raw material origin, production, us-
age, and recycling. This grants both customers and businesses access to vital product data.
Enhanced recycling: With DPP, recycling processes become more efficient. Understanding
a product’s composition and materials aids in selecting appropriate recycling methods.
Reduced raw material waste: DPP aids in better raw material management, minimizing
waste by offering precise information on materials and quantities used.
Circular economy support: DPP facilitates the shift from a linear to a circular model,
focusing on reuse, repair, and recycling rather than the make-use-dispose model.
Consumer confidence: Customers can verify product origin, environmental impact, and
disposal methods, influencing their purchasing choices.
Energies 2023, 16, 7742 12 of 18

Manufacturer incentives: Access to full product lifecycle data encourages companies to

create more durable and recyclable products.
In summary, DPP is a catalyst for transitioning towards a circular economy, ensuring
comprehensive transparency in product information for more sustainable consumer and
business decisions.
Implementing a digital product passport system holds promise in revolutionizing
plastic waste management. However, adopting a circular economy model for plastics faces
several challenges, including efficient sorting by polymer type, robust waste tracking, and
accurate records of prior uses (both food and non-food). Moreover, economic, regulatory,
and collaborative barriers further impede progress. To advance towards a circular economy
for plastics, it is imperative to redesign plastic products, incorporate vital information for
downstream use, and invest in technical developments to streamline waste management.
The integration of blockchain technology is poised to play a pivotal role in achieving
circular economy objectives. Through deploying smart contracts and tokenization capa-
bilities, the blockchain enhances the system’s efficiency. Embracing molecular tagging
in the redesign of plastics, complemented by the seamless integration of the blockchain
and circular economy principles, presents a promising pathway towards more effective
solutions for combatting plastic pollution [73].
Table 1 shows areas of waste management in which blockchain technology is applied.
This technology is used across various waste management domains to enhance trans-
parency, efficiency, and accountability. For plastic waste, it facilitates direct and transparent
financial transactions, incentivizes recycling through cryptocurrency rewards, ensures ac-
curate waste tracking, and automates logistics via smart contracts. In the realm of e-waste,
the blockchain enables smart contract modules for supply chain stakeholder interactions,
ensures appropriate transactions through automated checks, and tracks the lifecycle of
electronic devices for responsible disposal. The domain of textile waste benefits from
decentralized transaction confirmation, immutable ledgers for traceability, and transparent
transactions to prevent illegal dumping. In medical waste management, the blockchain
supports the real-time recording and sharing of information, transparent stakeholder data,
easy waste tracking, and prevention of forgery and tampering. As for hazardous waste
management, the blockchain is employed for the control of information sharing, tracing of
transactions through hash values, and real-time supervision of the waste transfer process,
ensuring compliance and environmental protection. Overall, the blockchain is emerging as
a transformative tool in waste management, optimizing processes and fostering sustainable
practices for managing diverse types of waste.

Table 1. Applications of blockchain technology in waste management.

Type of Waste Applications of Blockchain Technology in Waste Management Ref.

(1) New payment methods: Enable direct and transparent financial transactions for waste
management services, incentivizing stakeholders to participate in sustainable practices.
(2) Reuse and recycling rewards: Offer a tangible and immediate incentive for individuals and
companies that recycle and reuse plastic, with rewards distributed as cryptocurrency.
(3) Monitoring and tracking waste: Utilize blockchain’s transparent and immutable ledger
Plastic waste [68]
system to accurately track plastic waste from its source through recycling, ensuring
accountability and reducing contamination.
(4) Smart contract implementation: Automate aspects of waste management logistics, such as
payment disbursal upon completion of recycling milestones, through self-executing
contracts with the terms directly written into code.
Energies 2023, 16, 7742 13 of 18

Table 1. Cont.

Type of Waste Applications of Blockchain Technology in Waste Management Ref.

(1) Smart contract modules for stakeholder interaction: Blockchain can be used to create a
framework where interactions between stakeholders in the e-waste supply chain are
monitored. Each smart contract module could be responsible for a different part of the
chain, such as collection, processing, or resale.
(2) Ensuring appropriate transactions: By having all smart contract modules interact, the
system can be designed to automatically check and balance each transaction. This ensures
E-waste that stakeholders do not engage in inappropriate or unauthorized activities, such as illegal [69]
dumping or export of e-waste.
(3) Lifecycle tracking of electronic devices: Blockchain technology can be leveraged to track the
lifecycle of electronic devices from production to disposal. Each stage of the lifecycle can be
recorded on the blockchain, providing a transparent and immutable record that helps
manage the end-of-life process for electronics, facilitating reuse, recycling,
and proper disposal.
(1) Decentralized transaction confirmation: Blockchain allows for the confirmation of
transactions without the need for authentication by a central authority. This
decentralization can streamline the process of textile waste transactions, such as the
exchange of recycled materials, by allowing parties to directly interact and verify
transactions on the blockchain.
(2) Immutable ledger: The blockchain ledger is immutable, meaning once data are recorded, it
cannot be altered. This feature is crucial for the traceability of textile waste, ensuring that
Textile waste [70]
the history of a textile product, from production through to its recycling or disposal, is
permanently recorded and easily verifiable, enhancing accountability in the supply chain.
(3) Transparent transactions: Blockchain’s transparency ensures that all transactions are visible
to authorized parties, which can build trust among stakeholders in the textile recycling
ecosystem. This can encourage responsible sourcing and disposal practices, as the
movement of textile waste can be tracked and audited to prevent illegal dumping and
encourage recycling.
(1) Real-time recording and sharing: Blockchain facilitates the real-time recording and sharing
of information regarding waste treatment systems. Hospitals and waste treatment facilities
can instantly update and access waste processing data, ensuring timely and efficient
medical waste management.
(2) Transparency of stakeholder information: All parties involved in handling medical waste
can have their information transparently recorded on the blockchain. This visibility
includes waste generators (like hospitals), transporters, and treatment facilities, making it
easier to hold each entity accountable for their role in the waste management process.
(3) Easy tracking back to waste sources: Using metadata on the blockchain allows for the easy
tracking of medical waste back to its source. This feature is particularly useful for
regulatory compliance, ensuring that waste is handled appropriately at each stage
Medical waste [71]
of its lifecycle.
(4) Forgery and tamper prevention: The security features of blockchain prevent forgery and
tampering of information. Once recorded, the data cannot be altered retroactively, which is
crucial for maintaining accurate records in the highly regulated medical
waste management sector.
(5) Support for transactions: Blockchain can support and streamline transactions between
medical centers and waste centers, recycling plants, and sorting factories. Smart contracts
can automate the financial and operational aspects of these transactions, reducing
bureaucracy and errors, and ensuring compliance with legal and environmental standards.
This system can facilitate the entire lifecycle of medical waste, from collection and
transportation to treatment and final disposal or recycling.
Energies 2023, 16, 7742 14 of 18

Table 1. Cont.

Type of Waste Applications of Blockchain Technology in Waste Management Ref.

(1) Differentiated information sharing: Blockchain allows for controlled information sharing
among various participants, such as production, transportation, and treatment companies.
This differentiation ensures that each entity only accesses the data necessary for its role,
enhancing security and confidentiality while still maintaining the integrity of the waste
management process.
(2) Tracing information: All relevant information, such as the time of business transactions,
participating companies, personnel involved, and business details, can be automatically
stored as hash values on the blockchain. This hashed information, which serves as a digital
Hazardous waste fingerprint, ensures that the data cannot be altered and can always be traced back to their [72]
source for verification and audit purposes.
(3) Real-time supervision: Blockchain enables the real-time supervision of the hazardous waste
transfer process. Smart contracts can manage the entire process including application,
review, transportation, receipt, payment, and invoicing. This real-time capability ensures
that all steps in the hazardous waste lifecycle are monitored and recorded, which is
essential for regulatory compliance and environmental protection. With blockchain,
regulatory bodies can also monitor the compliance of these processes in real time, allowing
for prompt intervention when necessary.

Consequently, we can significantly reduce the volume of plastic waste subjected to

incineration or land disposal. The plastics’ circular economy serves to safeguard the
environment and bolster the energy transition in three key ways: it lessens our reliance
on fresh plastics sourced from fossil fuels, diminishes carbon emissions originating from
incineration processes, and prevents pollution stemming from landfill sites [74].

9. Conclusions
This paper has underscored the importance of implementing the European Com-
mission’s Green Deal policy for advancing industrial development and environmental
protection, especially via establishing closed-loop systems to reuse products and minimize
waste. In this context, the emergent technologies associated with Industry 4.0, such as the
blockchain, have been identified as potentially transformative in revolutionizing waste
management practices. Our exploration into the integration of the blockchain within the
circular economy has revealed that automated systems, powered by the blockchain and
connected through the Internet-of-Things, can significantly enhance the efficiency and
transparency of waste management systems.
The studies referenced throughout our discussion provide empirical backing for this
conclusion, demonstrating how blockchain technology fosters transparent transactions
for all stakeholders and accurately tracks the lifecycle of products. For instance, research
highlighting the blockchain’s role in improving the traceability of waste streams has shown
that such transparency is not just conceptually appealing but also practically beneficial.
The introduction of digital product passports, as part of a blockchain ecosystem, offers
comprehensive data on proper disposal methods, laying the groundwork for an integrated
supply chain that meticulously monitors a product’s journey from production to reuse
or recycling.
However, the blockchain not only has the ability to enhance technological capabilities;
its policy implications are vast. Used in alignment with the Green Deal’s ambitious goals,
blockchain technology can address critical challenges such as waste mismanagement,
environmental harm, and system inefficiencies. Studies have shown that the blockchain
can not only enhance transparency, traceability, and accountability, but also make waste
management processes more sustainable, eco-friendly, and economically viable.
The current literature further describes the differentiated sharing of information among
various stakeholders in the waste management process, facilitated by the blockchain’s
immutable and transparent ledger. These capabilities ensure that all aspects of hazardous
and medical waste management, including transportation and treatment, are supervised in
Energies 2023, 16, 7742 15 of 18

real time, which is integral to the environmental integrity and safety protocols mandated
by the Green Deal.
Recognition of the limitations of the present studies indicates a need for future research
to delve deeper into the scalability of blockchain solutions and their long-term sustain-
ability impacts. It is imperative to continuously evaluate the effectiveness of blockchain
applications in real-world scenarios and to adapt policy frameworks accordingly.
In conclusion, blockchain technology could indeed be a solution for waste manage-
ment, helping to address some of the most pressing environmental challenges of our time.
As we increase our understanding of the blockchain’s capabilities and limitations through
ongoing research, we move closer to realizing the full potential of this technology in creat-
ing a sustainable, efficient, and transparent waste management system in alignment with
the Green Deal’s objectives.
The most important findings of this review are:
(1) The significance of the European Commission’s Green Deal: The study emphasizes the
critical importance of implementing the Green Deal policy, which supports industrial
development and environmental protection. The policy is particularly focused on
creating closed-loop systems for reusing products and reducing waste.
(2) The role of Industry 4.0 technologies: As an Industry 4.0 technology, the blockchain is
highlighted as having significant potential to transform waste management practices.
The study suggests that the blockchain could be integral in the development of more
efficient and sustainable waste management systems.
(3) The integration of the blockchain in a circular economy: The paper discusses how
blockchain technology can be integrated into the circular economy to automate sys-
tems and connect various Internet-of-things (IoT) solutions and service systems.
(4) The importance of using the blockchain for waste management: It is noted that
blockchain technology is vital for ensuring transparent transactions among all stake-
holders and for accurate tracking of a product’s lifecycle.
(5) The role of digital product passports: The introduction of a digital product passport
is suggested as a means to provide comprehensive information on proper disposal
methods, supporting an integrated supply chain.
(6) The potential impact of the blockchain: The study concludes that blockchain technol-
ogy could be a game-changer in waste management by addressing issues of misman-
agement, environmental harm, and inefficiencies. It is proposed that the blockchain
can contribute to making waste management more sustainable, eco-friendly, and
economically efficient.

Author Contributions: Conceptualization, M.B.; investigation, K.B., M.Z. and M.B.; resources, K.B.,
M.Z. and M.B.; writing—review and editing, K.B., M.Z. and M.B.; visualization, K.B.; supervision,
K.B., M.Z. and M.B. All authors have read and agreed to the published version of the manuscript.
Funding: This research received no external funding.
Data Availability Statement: Data available on request.
Conflicts of Interest: Author Maciej Bułkowski was employed by the company Caruma Sp. z o.o.
The remaining authors declare that the research was conducted in the absence of any commercial or
financial relationships that could be construed as a potential conflict of interest.

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