Blockchain for Circularity

Abstract

The Linear Economy currently follows the Take - Make – Dispose model. This paradigm is based on the consumption of resources rather than the preservation of their value. If this model remains dominant, it will lead to material scarcity, thereby increasing materials prices. The linear economy has a negative effect on nature as this model creates a tremendous amount of waste. Minimising the waste, maximising the value and facilitating the reuse of materials is the foundation of the Circular Economy. Lack of information regarding materials is recognised as one of the primary causes for waste generation. As a result, material passports were created to facilitate information sharing. However, some barriers hinder the application of these material passports. This research analysed the barriers and requirements of material passports and whether these barriers can be addressed through the characteristics of Blockchain technology such as transparency, distributive nature and security. However, a traditional blockchain has its challenges, such as scalability and an unsustainable consensus mechanism. In this research, a conceptual framework of Hyperledger Fabric (Private-permissioned Blockchain) based material passports is developed to tackle these barriers and meet the requirements. The framework developed aims to be helpful to create Hyperledger Fabric-based Material Passport by Material Passport Developers. Additionally, this helps the stakeholders within the built environment to understand the working of Blockchain-based material passports. The framework's validation was carried out by developing two scenarios, i.e., the Blockchain-based material passport and the BIM-based material passport and comparing them. This step was carried out to see whether the proposed Blockchain-based Material Passport framework will address the barriers of BIM-based material passports. In addition, semi-structured interviews with different stakeholders who use material passports to validate the framework.