A recent report by the International Association for Trusted Blockchain Applications (INATBA) sheds light on the growing adoption of Distributed Ledger Technology (DLT) within European trade consortia. The report, titled “EU Consortia and Global Trends in Industrial Blockchains,” explores the use of blockchain technology across various sectors, highlighting both its potential and current limitations. While the focus leans towards public and private consortia embracing blockchains like Ethereum or Hyperledger Fabric, the potential of IOTA, a tangle-based DLT, deserves mention in the context of European trade innovation.
The INATBA report highlights a fascinating trend: strong blockchain adoption in sectors like mobility, energy, and circularity, with a surprising lag in supply chain and digital product passports at the consortium level. This doesn’t negate individual companies within these consortia exploring DLT solutions. However, it raises questions about the suitability of traditional blockchains for specific use cases.
Why IOTA Stands Out for Trade Consortia
IOTA, unlike conventional blockchains, utilizes a different architecture called the Tangle. This eliminates the need for miners, resulting in faster transactions with minimal fees, a crucial factor for high-volume trade data exchange within consortia. Additionally, IOTA’s feeless transactions are particularly attractive for micropayments, a potential game-changer in sectors like mobility (think seamless electric vehicle charging payments).
While the INATBA report doesn’t delve into specific IOTA use cases within consortia, several ongoing projects demonstrate its potential. For instance, the TradeTrust consortium, a collaboration between Bosch, Siemens, and other industry leaders, explores IOTA for secure and transparent supply chain management. This aligns well with the report’s observation of individual companies within consortia forging ahead with DLT solutions.
Challenges and the Road Ahead
Despite its advantages, IOTA faces challenges. The technology is still relatively young compared to established blockchains, and its ecosystem is evolving. However, the INATBA report highlights the success of consortia like MoveID, which utilizes a combination of blockchains for mobility identity management. This collaborative approach, leveraging the strengths of different DLT solutions, could pave the way for wider IOTA adoption in trade consortia.
The INATBA report concludes by acknowledging the potential of DLT holdouts to embrace the technology. IOTA, with its unique capabilities, presents a compelling option for European trade consortia seeking to streamline processes, ensure data security, and ultimately enhance trade efficiency. As the technology matures and the ecosystem flourishes, we can expect to see IOTA playing a more prominent role in driving innovation within these consortia.t
