From Plastic Bottles to Crypto Tokens: Sanjay Mhaskey’s Radical Rethink of the Recycling Economy

There is no doubt that plastic waste has become one of the biggest environmental challenges worldwide. With the increased use of the material, the waste generated continues to mount, and many industries are unaware of the necessary actions to take. 

Traditional recycling systems often struggle to engage people or ensure transparency about where waste goes and how it is managed. Now, digital technology—especially blockchain—is offering new ways to tackle these issues. By creating traceable, tamper-proof records and rewarding people for recycling, blockchain is helping to reshape how waste and resource recovery are seen.

Sanjay Vijay Mhaskey, a Certified Blockchain Expert and Blockchain Solution Architect, is exploring how token-based recycling models can support this transition. In his research paper, “Leveraging Tokenization in Blockchain-Based Circular Economy: A Paradigm Shift towards Sustainable Resource Management,” Sanjay explains how blockchain tokens can motivate people to collect and recycle materials like plastic bottles. “This paper guides industry leaders on implementing circular supply chains to enhance environmental and economic sustainability, saving materials and reducing environmental impact,” he added. These tokens can then be exchanged for goods or services, turning waste into something valuable.

Startups like Plastic Bank have already tested similar ideas, creating markets for plastic waste and giving collectors a fair way to earn. Platforms like RecycleToCoin and Empower have also used digital tokens to reward individuals directly, encouraging more consistent participation in recycling.

According to Sanjay, blockchain brings trust and traceability to recycling programs. Every transaction—whether it’s a person depositing bottles or a company purchasing recycled materials—can be recorded in a way that can’t be altered. This transparency builds confidence in the system and ensures fair compensation for participants. It also provides data that companies and governments can use to enhance their management and reuse of materials.

A key part of the professional’s research focuses on the idea of a circular economy, where materials are not just discarded after use but are kept in circulation through recycling and reuse. “In my study, projects that embed circular economy principles have demonstrated not only environmental benefits but also substantial cost savings and resilience against supply chain disruptions,” he noted. Additionally, blockchain tokens, combined with tools like material passports and digital certificates, can track the origin and quality of recycled materials. This helps businesses ensure that what they buy meets quality standards and can be used in new products. It also reduces the need for raw materials, thereby lowering costs and minimizing environmental impact.

Furthermore, the expert advocates that blockchain can open up new opportunities for both businesses and communities. Though still at an early stage, token-based recycling systems have the potential to change how people view waste—from something disposable to something with value.

As the architect shared, one of the challenges in building these systems is making them simple and reliable for everyday users. He points out that correctly identifying and grouping different types of recyclable waste is essential for success. Without accurate data, the incentive system could lose credibility. However, when done well, these platforms create a powerful link between individuals, organisations, and recycling networks, encouraging everyone to participate.

Looking ahead, Sanjay advises, “For practitioners, I suggest piloting blockchain-enabled reward systems in localized contexts to build trust and refine the user experience before scaling.” He agrees with industry experts that blockchain can be combined with other tools, such as AI and Internet of Things (IoT) devices, to enhance waste management. Smart bins with sensors could automatically track what is being recycled, while blockchain ensures that every step of the process is recorded and verified. This combination could make recycling programs more transparent and increase participation in them.

In conclusion, the recycling industry is under pressure to find more innovative solutions, and digital tools, like blockchain, offer a promising path forward. Now, connecting plastic bottles to crypto tokens might sound unusual, but it represents a fresh approach to solving one of the most persistent environmental problems of today.