Out With the Old: Blockchain to Bring Transparency to Recycling Sector

Although recycling may seem like a relatively simple concept, the plastics recycling supply chain proves otherwise.

From understanding which plastics get recycled to determining the quality of those plastics, these issues and more are resulting in lower recycling participation rates.

Stan Chen, CEO of recycling platform RecycleGo, told Cointelegraph that the recycling business is "Plagued with ine?ciencies, a slew of stakeholders, and a lack of digital data." In addition, he believes that what stops the industry from growing is "a need for greater supply chain visibility for better decision-making."

"We are building this blockchain not just for RecycleGO, but for everyone who wants to be a part of this network. Our goal is to take recycling rates from around 8% to 100% moving forward."

When recycling companies bring plastic to one of the Plastic Bank centers, digital tokens are issued via smart contacts on mobile devices.

Using a mobile app, participants are able to record when they bring waste to recycling centers.

While blockchain may provide a possible way to transform the recycling industry, adoption could prove challenging.

He pointed out that if recycling companies can generate revenue from applying blockchain without too much of a learning curve, they will eventually want to use the technology.

Chen further noted that RecycleGO is forming collaborations with international household brands, many of which have publicly pledged to reach 25% recycled content by 2025, adding: "There is a market that wants more recycled material, but we currently don't have enough content to support it; consumers simply are not recycling enough."

Lehman further noted that while a number of blockchain-based projects have emerged in the recycling space, "These projects need a change champion with global reach and clout to really move things forward." Although this is the case, Lehman explained that the blockchain community can help support this change through innovative use cases and financial infrastructure to support digital collaboration within the waste sector.