Blockchain technology applied to circular economy has a world-changing potential to increase transparency, traceability, and the sustainability of the resources management. With the shift towards regenerative industries, it is of the essence to have the capacity to track the lifecycle of used products, used materials, and waste securely. A new method (Circular Blockchain-Resource Lifecycle Management (CB-RLM) algorithm) is proposed in this work that is supposed to maximize the monitoring and incentivization resource flow in the context of decentralized systems. Using a blockchain as a platform allows conducting real-time monitoring of materials backtracking, and the proposed approach will provide a way of materials following all stages of production, consumption, reuse, and recycling. The algorithm combines the information presented by the means of the IoT-enabled devices to guarantee permanent verification of product statuses and ownership, whereas smart contracts automatically sanction the policy compliance of reuse and returns. The system also creates digital tokens as rewards to sustainable behavior during processes, which gives the stakeholders incentive to engage in the circular economy. The mechanism will not only facilitate resource efficiency and accountability but it will promote trust among the members of the supply chain. The suggested CB-RLM algorithm also has the potential to solve such key design problems as data integrity, stakeholder cooperation and lifecycle openness, thus paving the way to the creation of scalable and smart circular systems. This model brings a more environmentally responsible and resilient industrial ecosystem by means of decentralized enforcement and automated incentives. The suggested CB-RLM technique achieves an overall accuracy of 99.4%.