Zhida Eniviromental Technology Co. Ltd. (ZD) is a waste management company based in Nanjing, China. With the concept of Internet plus recycling, ZD is committed to waste sorting and has introduced innovative household waste solutions. The company's core competitivesness is its credits for waste digital system, which was initially piloted in Nanjing and gradually expanded into other Chinese cities. However, new challenges including stagnant resident participation rates, low profit returns, competitor expansion, and limited support from local government are driving the transformation of ZD.

Xinglong Zhu, ZD's chief executive officer, is considering adopting blockchain technology (BCT) into the ZD work process to solve the company's challenges. The inherent BCT functions, such as digital token services, a transparent recycling chain, and collaborative governance mechanisms, can potentially improve ZD's current operations. These functions seem adaptable to ZD's business model, which could be revolutionary for the recycling industry. However, Zhu knows there are potential risks from adopting BCT into teh company's operations, which would give ZD a first mover position in the market. Zhu has to throughly consider this decision before embracing BCT.

Questions to answer while following the outline below:

• Is it necessary for ZD to adpot BCT into this operations?
• What true value can BCT offer ZD?
• What potential challenges must ZD overcome?
• What is ZD's current recycling chain (or business model)?
• What are the current operation challenges for ZD?
• Based on its characteristics, what functions can BCT add to the recycling chain?
• How can BCT improve ZD's recycling operation performance?
• Considering all advantages and potential risks, should ZD embrace BCT and adopt it into its business model? Use the TOE theoretical framework to answer this question.