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Blockchain technology and the circular economy: Implications for sustainability and social responsibility

Upadhyay, Arvind; Mukhuty, Sumona; Kumar, Vikas; Kazancoglu, Yigit

Authors

Arvind Upadhyay

Sumona Mukhuty

Yigit Kazancoglu



Abstract

Blockchain technology is a revolutionary new protocol for sharing and updating information by linking ledgers or databases in a decentralised, peer-to-peer, open-access network. Blockchain is designed to ensure the data is stored and updated in a secure, tamper-proof and irreversible way. Despite being in its nascent stages, the blockchain research is developing rapidly in different fields, making it imperative to capture the ethical and sustainability implications of blockchain development and implementation. The circular economy also focuses on enhancing sustainability and social responsibility, alongside economic growth. In this article, we critically review blockchain technology's current and potential contribution to the circular economy through the lens of sustainability and social responsibility. This paper contributes to the Industry 4.0 literature by identifying, collating and organising the disparate research on blockchain, with a critical focus on its positive impact and potential repercussions for the ethics agenda. Within this narrative review, we argue and highlight the extant and potential alignment of blockchain with circular economy. Our findings show that blockchain technology can contribute to the circular economy by helping to reduce transaction costs, enhance performance and communication along the supply chain, ensure human rights protection, enhance healthcare patient confidentiality and welfare, and reduce carbon footprint. We also evaluate the challenges to blockchain implementation for circular economy, in terms of trust, illegal activities, potential for hacking and the need to address these through suitable legislation and policy development. Furthermore, we acknowledge the potential upfront costs involved in implementing blockchain technology, although we observe that the benefits are likely to exceed the challenges. We conclude this article with recommendations for future research in this field.

Citation

Upadhyay, A., Mukhuty, S., Kumar, V., & Kazancoglu, Y. (2021). Blockchain technology and the circular economy: Implications for sustainability and social responsibility. Journal of Cleaner Production, 293, https://doi.org/10.1016/j.jclepro.2021.126130

Journal Article Type Article
Acceptance Date Jan 26, 2021
Online Publication Date Feb 3, 2021
Publication Date Apr 15, 2021
Deposit Date Jan 27, 2021
Publicly Available Date Feb 4, 2022
Journal Journal of Cleaner Production
Print ISSN 0959-6526
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 293
Article Number 126130
DOI https://doi.org/10.1016/j.jclepro.2021.126130
Public URL https://uwe-repository.worktribe.com/output/7040545