The study aims to explore the distinctive features of blockchain technology that facilitate the transition to a circular economy, which enables the measurement of circularity practices implemented by companies, providing an objective basis for their reporting and subsequent comparisons (Balzani and Corsi, 2024). The research provides an overview of the current knowledge on how blockchain technology and the most advanced digital technologies contribute to transforming from a linear economy to a circular economy. Following the Tranfield et al. (2003) guidelines, the paper develops a systematic literature review. The review highlights selected papers’ bibliometric characteristics (year of publication, document type, study approach, research country) and the main findings. The researchers summarized the research gaps, detecting the sector’s potential implications and relevant insights. The findings highlight how introducing blockchain technology has brought significant benefits to achieving circular economy practices for companies. Blockchain technology’s significant contribution to the circular economy applies to a wide range of industrial sectors. However, companies need to master new data analysis technologies to adopt blockchain technology and optimize sustainability practices properly. Blockchain links producers with commercial channels, ensuring traceability, transparency, authenticity, increased productivity, reliability, and trust-based agreements while, thanks to the immutability of recorded data, preventing fraud and information falsification (Kumar and Chopra, 2022). The study provides valuable insights for policymakers, companies, and researchers to promote the integration of blockchain technologies within businesses, contributing to the pursuit of sustainable development.