Towards a virtual water currency for industrial products using blockchain technology

Abstract

Tracking unseen water in products (Embedded Virtual Water) has generated great interest in the scientific community. This water transfers between geographies via suppliers, manufacturers, distributors, retailers and customers in multiple phases. However, the Virtual Water Trading System lacks proper accounting standards, established protocols and processes in the context of product manufacturing. Therefore, there is a need to establish a technology platform to handle the complex virtual water international trade. Such a platform should uphold transparency and create 'water consciousness' and awareness among companies and consumers. The concept of a virtual water currency and blockchain technology platform together can manage these processes. Blockchain helps in setting up secure, verifiable, scalable and traceable systems. Blockchain manages the audit and contract management processes with ease. Virtual water currency is critical to advocate sustainability. The objective of this paper is to establish the key linkages between virtual water and usage of blockchain. A systematic literature survey was conducted on 16 journal repositories (153 journal papers) of IWA Publishing to establish virtual water linkages and five journal databases (IEEE Xplore, Sciencedirect, ACM Digital Library, Springer Link and Wiley Online Library covering 5026 journal papers) for blockchain and water management linkages. This study proposes to introduce virtual water currency and set up an International Virtual Water Trading System using blockchain. The proposed platform seamlessly integrates the quality, cost and sustainability of industrial products and their sub-components.