Thread by @io_terry

1/15 Some TLIP context for the IOTA community – this isn’t just a big announcement, it could mark the start of a fundamental change in the way that those outside of the crypto bubble, see the uses and applications of DLT.

2/15 Global Trade is rooted in paper-based systems that haven’t changed much in over a century. TLIP and IOTA could become the new standard that greases the rails of the Supply Chain and Logistics industry of the future.

3/15 It starts with legislation – in Sept 2023 the UK Government passed the Electronic Trade Documents Act (ETDA) which gives digitalized trade documentation the same legal footing as their paper-based equivalents for the first time in history. The ramifications are mind-boggling

4/15 It includes documents like Bills of Lading, Certificates of Origin, Health and Inspection Certificates, Insurance Certificates, Airway Bills, Seaway Bills, Letters of Credit, and more,

5/15 UK Law governs about 70% of international trade and under the ETDA, a digital document now has the same legal standing as a paper version providing there is only one immutable version that cannot be duplicated or tampered with.

6/15 The law also requires that the electronic document must provide a verifiable history of provenance, and that ownership can be transferred electronically – in essence these documents must be NFTs.

7/15 If each consignment in the global system requires its own NFT, it will need a DLT that can provide cheap/free transactions combined with Smart Contract capability on a massive scale. Even in the absence of fees, the demand for IOTA to anchor these NFTs will be massive.

8/15 The Container Shipping industry has publicly declared that they will be converting to100% standards-based, tokenized electronic bills of lading by 2030 – just 6 years from now.

9/15 McKinsey estimates that if the electronic bill of lading gains 100% adoption across the industry, it could unlock around $18bn in gains for the trade ecosystem plus $30-40 billion in global trade growth,

10/15 Interoperability between systems will be key, but having groups like the WEF, Tony Blair Institute, the UK Institute of Export, Global Alliance for Trade Facilitation, TMA & others responsible for TLIP’s governance framework guarantees that IOTA will be a/the leading player

11/15 The governance body will also define the business model and all financial flows, further guaranteeing demand for IOTA and MANA. A significant component of the success of these systems is predicated on Digital Identity and Verifiable Credentials – where IOTA also shines

12/15 Today’s announcement builds on the UN Model Law on Electronic Transferable Records (2017) which is already being adopted by countries like the UAE, Singapore with wider G7 adoption expected in the next few years.

13/15 IOTA is a perfect fit for this use case – a consignment can contain products, each with its own Digital Product Passport, made up of assemblies and sub-components, each with its own Digital Identity.

14/15 The IOTA feature where an NFT can own or control other NFTS, each with its own history and provenance makes perfect sense in this context.

15/15 Today’s announcement is a huge step forward for IF and the IOTA community and bodes well for the future. @DomSchiener and the @TLIP_io group are to be congratulated for this landmark agreement. It can only get better from here.