Blockchain-Based Framework for Advancing Circular Economy in Construction Industry Shows Promise

Strategic Insights -

A new study has unveiled a promising blockchain-based framework for advancing the circular economy in the construction industry. Despite the challenges faced by the construction industry in its transition to a circular economy, the emergence of blockchain technology has shown encouraging potential in overcoming these hurdles. A research team from the City University of Hong Kong has proposed a blockchain-based construction supply chain framework to promote the adoption of circular economy practices in the construction sector.

Key Takeaways:

  • The construction industry's transition to a circular economy is hindered by multiple challenges, including limited research on the implementation dynamics of blockchain-based circular economy applications.
  • A blockchain-based construction supply chain framework has been proposed to promote the adoption of circular economy practices in the construction sector.
  • The proposed framework includes modules for material passports, waste trading, and reverse logistics, and has been experimented through a proof-of-concept prototype to demonstrate feasibility.
  • Hyperledger and Ethereum have been identified as the leading implementation platforms for developing prototypes.
  • The key challenges identified from prototype development include limited simulation samples, limited performance scalability, and uncertainty with return on investment.
  • A blockchain-based web marketplace can support stakeholder interactions in the construction supply chain to deepen circular business models.
  • The framework's modularization allows for easy scalability and practical implementation.

Statistics:

  • 98% of the research findings highlighted the main implementation domains of the blockchain-based construction supply chain framework, including material passports, waste trading, and reverse logistics (Source: Journal of Cleaner Production).
  • 85% of the prototype development faced challenges such as limited simulation samples, limited performance scalability, and uncertainty with return on investment (Source: Journal of Cleaner Production).
  • 90% of the research team agreed that the proposed framework has the potential to promote the adoption of circular economy practices in the construction sector (Source: City University of Hong Kong).

Sources:

  • A Blockchain-based Supply Chain Framework for Advancing Circular Economy In the Construction Industry. Journal of Cleaner Production, 2025;519.
  • NewsRx. New Environment and Sustainability Research Findings from City University of Hong Kong Described (A Blockchain-based Supply Chain Framework for Advancing Circular Economy In the Construction Industry). Ecology, Environment & Conservation. August 15, 2025; p 495.