# At the Nexus of Blockchain Technology, the Circular Economy, and Product Deletion
## 3 Framework and Propositions
### Macro: Circular Economy at the Institutional Level
#### 4.1.2 Energy  
Energy is a key source of supply chain activities. CE proposes that the circularity of energy and materials improves sustainability values [51]. To specify, minimizing energy consumption, environmental pollution, and the usage of green energies can support circular economy purposes and sustain the environment. Converting wastes to biomass energy can further leverage the circularity of energy [15]. However, waste-to-energy is generally not considered a preferred option in the waste hierarchy model, which ranks different waste management techniques [52]. Alternatives such as recycling and remanufacturing are preferred, with reduction typically the most preferred option.  
Blockchain technology can facilitate energy exchange and trading by offering new developments for decentralized energy markets. Agents and network participants can share their energy usage and surplus and trade their carbon credits through a blockchain platform. This may provide information for governments, policymakers, and communities in the broad design of these systems. Cryptocurrencies and the reliability of information supported by blockchain can further boost energy markets performance [53]. Governmental regulators and stakeholders can observe and evaluate energy markets information and monitor their compliance with environmental goals.  
Accurate information that is presented on blockchain ledgers can enhance real-time monitoring and assessing the energy consumption level of materials and products. Numerous materials are extracted from rare and non-renewable resources or use non-green energy resources in their processes. Those materials and energy are not only consumed but may create wastes and damage the environment.  
Product manufacturing and usage information that is continuously and accurately monitored can provide energy performance. Blockchain helps identification of energy problems by providing the traceability of materials and products back to their origin and metrics to evaluate their energy usage to ensure sound and effective product deletion decisions. Products with a high level of energy usage and poor energy efficiency can be candidates for deletion that, in turn, can enhance the circular economy. Policymakers can also tax products with poor energy performance more accurately, internalizing external energy and related emission costs.  
The freed energy from deleted products can be used to source circular economy activities and reverse energy cycles. Although circular economy activities, such as refurbishing, remanufacturing, and recycling, require intensive resources and energy, the environmental damage is typically less than primary production processes. Using a blockchain-enabled system helps companies determine the materials and products that use non-renewable resources and remove them or invest in alternative green resources to benefit the circularity of energy.  
However, while blockchains are maturing, vast amounts of power and energy are needed for data validation. This process is through so-called mining in cryptocurrencies and thus can have negative impacts on the environment. Growing interest in blockchain technology motivated technological advancements that shift blockchain toward green and renewable energies [54].