Reduction of scams on recycled polymers, market protection, economic sustainability and quality assurance for the consumer

The European recycled polymer market is experiencing one of the darkest periods in its recent history, gripped by problems linked to production costs, the inflationary situation, low demand due to international instability and competition, outside the EU, which is increasingly aggressive and not very transparent.

Furthermore, the recycled polymer lends itself to a market where certainties about the intrinsic quality of the product are currently frankly difficult to identify and control, sometimes creating disputes and mistrust.

The dispute is not only the expression of an expected quality different from that requested, but, increasingly, concerns a polymer that has very little recycled content , but passed as such and destined for production where the use of a circular polymer is mandatory at 100%.

All these problems arise from the fact that the production chain, therefore starting from waste management up to the production of polymers, is not traceable in a certain way, causing the final producer to lose valuable information to guarantee the survival of his company and its market. .

How blockchain works to track recycled raw materials

When plastic waste is sent for recycling, a record is created on the blockchain, indicating its origin, composition, quantity and other essential information.

As the raw material passes through various processing stages such as harvesting, sorting, washing, grinding and extrusion, each stage is recorded on the blockchain. This allows you to trace the complete path of the material.

Once the polymer has been granulated, it can be subjected to quality testing, the results of which can be recorded on the blockchain, assuring buyers that the recycled material meets certain standards.

Once a transaction has been recorded on a blockchain, it cannot be changed without changing all subsequent blocks, which would require consensus from the majority of the network, which makes the data reliable and resistant to fraud.

The blockchain, in fact, is not controlled by a single entity, but rather by a network of nodes (computers), which increases its transparency.

Through smart contracts , self-executing protocols with terms of agreement between the parties written directly in code, processes in the supply line can be automated and verified, such as confirming the origin of a raw material.

It is therefore possible to know exactly the origin of the raw materials when they are collected, through a record that is created on the blockchain. This record may include details such as date, location, quality of raw material and other relevant information.

Once the origin of the raw material has been ascertained, it is possible to follow its path towards the final buyer, in fact, as the raw material moves along the supply line (from separate or industrial waste collection to the recycler, from this to the producer, etc. ), new transactions are recorded on the blockchain, creating a complete and immutable history of its path.

Companies or end customers can verify information on the blockchain, to ensure that raw materials meet certain required technical values or sustainability.

Furthermore, using smart contracts, payments can be automated and released only when certain conditions are met, such as confirmation of delivery of a raw material.

The blockchain can be public, allowing anyone to see and verify the traceability of raw materials. This can help companies demonstrate the sustainability, content and quality of their supply lines to consumers or purchasing and quality departments.

In fact, even consumers who purchase products made with recycled raw materials can verify the origin of these materials through the blockchain.

By incorporating blockchain into the process of tracking recycled raw materials, a more transparent and reliable system can be created that can encourage greater recycling adoption and greater accountability in the manufacturing sector.

What business advantages can a supplier of recycled raw materials using the raw materials blockchain demonstrate to its customers

The adoption of blockchain by a supplier of recycled raw materials offers numerous advantages, one of these is, as we have seen, the traceability of sources. In fact, through blockchain, customers can verify the origin and path of a recycled raw material, checking the authenticity and sustainability of the source.

Another important advantage is the reduction of fraud on the polymer and its quality, in fact, the immutable nature of the blockchain makes it almost impossible to alter or falsify the data, reducing the risk of fraud or inauthentic raw materials.

This applies both in the composition of recipes with 100% recycled sources, but also for those polymers defined as recycled but which instead may contain a preponderant percentage of virgin materials, subjected to the classic phenomenon of greenwashing .

Furthermore, using automated processes, such as smart contracts, can speed up transactions and verifications, making the entire supply chain more secure.

With blockchain, a history of original raw materials can also be created, providing tangible evidence of their origin and the types of transformation they undergo, allowing companies to demonstrate their environmental and social responsibility.

Then there is an innovative aspect that can be asserted on the end customer, as the adoption of emerging technologies such as blockchain demonstrates a commitment to innovation and can position the supplier as a leader in the sector of recycled raw materials.

Furthermore, blockchain can reduce costs related to intermediaries, errors, fraud and manual processes, thus offering more competitive prices to customers.

Greater transparency and reliability is therefore created which can strengthen trust between supplier and customer, building more solid and long-lasting commercial relationships, also in demonstrating compliance with current regulations, as the customer can verify the conformity of the product he is purchasing. , environmental or worker or consumer protection regulations relating to your sector, facilitating the purchasing process for those customers who need such certifications for their activities.

Finally, in an increasingly crowded market, the use of blockchain can provide a distinctive advantage and position the provider as a pioneer in terms of transparency and sustainability.

In summary, blockchain offers suppliers of recycled raw materials a means to demonstrate authenticity, quality, responsibility and innovation, all of which can have a positive impact on customer perceptions and purchasing decisions.

What technical skills do companies need to have to develop the blockchain for recycled raw materials

To develop a blockchain dedicated to recycled raw materials, companies would need a combination of technical and sectoral skills, including knowledge of the fundamentals of the technology they want to adopt, an understanding of the types of blockchain (public or private) and the their implications, and familiarity with cryptography.

It is therefore necessary to acquire expertise in programming smart contracts, often using languages such as Solidity (for Ethereum) or other languages specific to the chosen blockchain platform. Additionally, knowledge of back-end programming languages such as Python, Java, C++ or Go is required.

The company must also have the ability to manage and integrate large volumes of data in real time, knowledge of peer-to-peer networks, configuration and maintenance of blockchain nodes and scalability management.

By developing information from the manufacturing, purchasing, logistics and trading sectors, you need to have the necessary skills to ensure supply line security, including preventing attacks, managing vulnerabilities and protecting sensitive information.

If you want to provide a user interface or portal for access and interaction, you will need skills in UI/UX design and front-end programming languages such as JavaScript, HTML, and CSS.

You will also need knowledge of laws and regulations related to recycling, data privacy and blockchain standards.

While technical skills are essential, it is equally important for the company to have a strategic vision and understand how blockchain can fit into the broader context of the company's objectives and its vocation relating to sustainability and the circular economy.

Many companies may also choose to partner with external vendors or consultants who specialize in blockchain, to make up for expertise they may lack internally.

Automatic translation. We apologize for any inaccuracies. Original article in Italian.