Empowering the Circular Transition Through Blockchain: Applications, Challenges and Future Opportunities

ABSTRACT

The study investigates the interaction between blockchain technology and the circular economy through a systematic literature review of 64 scientific publications between 2018 and 2025. The research maps blockchain applications supporting circular practices in 10 key sectors: waste, agri‐food, fashion, building, energy, electric vehicle batteries, electronics, finance, manufacturing and transportation. The results highlight blockchain's potential to improve transparency, traceability and collaboration along supply chains, supporting circular strategies such as reuse, recycling and product life‐cycle extension. The study also identifies barriers to adoption, including technical complexity, poor stakeholder training and regulatory gaps. Future research highlights the need for researchers to investigate the integration of blockchain with artificial intelligence and smart contracts and promote cross‐sector collaboration. The findings offer theoretical and practical implications for businesses, policymakers and scholars interested in harnessing blockchain for a sustainable industrial transition.