Decision Model for DLT Applicability in Recycling Life Cycle Tracking

Circular economy implementation is feasible through digital tracking of raw materials. The aim of this article is to analyze the possibilities for deploying blockchain or Ethereum as Distributed Ledger Technology (DLT) platforms. Various decision-selection algorithms were examined for choosing a suitable platform and network type (public, private). The article analyses the drawbacks and barriers to achieving a circular economy in accordance with sustainable development criteria. Based on the regulatory framework and operational projects, it is shown that digital technologies improve the efficiency of raw material processing and life cycle tracking. To build an effective network, a separator is proposed as a separate participant in addition to producers, processors, and consumers. Their functions are waste classification and sorting, and receiving and transmitting heterogeneous data streams while preserving the privacy of sensitive ones. Drawing on the specifics of circular economy implementation, selection criteria are proposed, including deployment cost, data immutability, energy consumption, need for new technology, and others. A superior decision support tree tailored to material recycling is proposed. Its advantage is fast decision-making and selection of an appropriate platform within the DLT landscape. The proposed conceptual framework is not a universal solution as it can be adapted to different recycling schemes, especially when the regulatory framework, technologies, materials, flows, scheme participants, stakeholders, or other factors change.