An ambitious project to recycle plastic refuse in developing countries that have little or no waste management systems is being powered by the IBM Blockchain. Big Blue’s use of the tamper-proof ledger system is only half the story, because the recycling project is also designed to pay people who bring in their plastic, a tricky proposition since there are parts of the world where bank accounts are non-existent and corruption is rampant. Blockchain’s secure and transparent technology solves that problem.

“We’re dealing with the unbankable who can now, for the first time, save and earn through recycling. Recycling is the equal opportunity,” said Shaun Frankson, co-founder of The Plastic Bank.

Frankson (pictured, left), visited theCUBE, SiliconANGLE’s mobile livestreaming studio, and spoke with co-hosts John Furrier (@furrier) and Stu Miniman (@stu) during Open Source Summit in Los Angeles, California. He was joined by Alan Dickinson (pictured, right), program director, Blockchain Platform, at IBM Corp. They discussed The Plastic Bank’s reward model, the blockchain technology behind it and how trust drives global adoption. (* Disclosure below.)

Digital tokens replace cash

Founded in 2013, The Plastic Bank uses a blockchain-based reward system for recycling plastic that issues digital tokens rather than cash. These tokens can then be exchanged for essentials such as food, phone-charging credits or water at stores that use the non-profit’s app to convert the tokens into mobile payments.

“It’s a system designed to scale around the world without any interruptions,” Frankson said.

The technology underpinning The Plastic Bank’s program includes IBM Blockchain, Hyperledger Fabric (a platform for distributed ledger solutions) and IBM LinuxONE servers. IBM recently announced a new generation of LinuxONE mainframes that include a security feature called Secured Service Containers that automatically encrypts data in motion. This provides an additional layer of security for blockchain transactions.

“This secure container technology can be used for any Linux application that you run,” Dickinson explained. “It protects it from malware and from insiders if credentials get compromised.”

IBM’s blockchain model has suited The Plastic Bank well, because it offers a trust structure for transactions involving multiple parties, such as the recycling citizen, the store owner and even Plastic Bank itself. The platform is designed to handle groups seeking to exchange value, and updates don’t require having to take down the entire blockchain system to install them.

“One of the things that’s unique about IBM’s approach to blockchain are the governance tools that we’ve created,” Dickinson said.

Building this level of trust has allowed The Plastic Bank to drive toward its goal of serving 20-30 different countries. “For us, trust is the biggest thing. Blockchain is a trust stamp; IBM is a trust stamp; LinuxONE is a trust stamp,” Frankson concluded.

Watch the complete video interview below, and be sure to check out more of SiliconANGLE’s and theCUBE’s coverage of Open Source Summit 2017. (* Disclosure: TheCUBE is a paid media partner for Open Source Summit 2017. Neither The Linux Foundation nor Red Hat Inc. have editorial control over content on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE