Blockchains are clearly changing the world. Pick almost any industry and you can observe how blockchain technology has the potential to cause disruptive change. Consider project financing, where bankers, private equity, venture capital and selected individuals have for far too long controlled most of the capital, and the resultant profits that flow from investments in pr ojects. Blockchains carry the promise of a more inclusive and univer sally accessible world, a world in which community par ticipants and common folk get an equal opportunity to par ticipat e, and share, in the value that they cr eate.Natural Capital is the world's stock of natural resources. The untapped and undervalued Natural Capital asset class is estimated to be worth in excess of USD $120 trillion, yet no transparent mechanism exists to connect producers of Natural Assets with business, consumers, or IoT devices.
Since our establishment in 2009, we have been pioneering the use of digitally represented Natural Assets to provide innovative environmental sustainability solutions. In April 2017 we launched the latest version of our climate asset management and trading platform that is based on a private permissioned blockchain ledger. There are no registration fees for buyers, and there is no need to fund escrow accounts with an exchange, as is the current practice, nor are there any limits on transaction volumes (unless stipulated by the seller), nor will buyer s be required to register with 3rd par ty registries; all of which are current barriers t o par ticipation. Sellers control their own profit pipeline by having access to a range of flexible pricing mechanisms (e.g. fixed price, spot rate, various auction types, et c.), which they will be able to assign to their asset pool based on their chosen percentage of the pool allocation; all without long-ter m contractual lock-in. The use of Earth Tokens (ETN) as the settlement currency reduces complexity related to fiat currency exchange rates, along with significantly reduced transaction fees. ETN tokens will be based on Ethereum, a next generation blockchain protocol enabling advanced smart contracts. Ethereum is future-proof (e.g. IoT Smart Contracts), censorship resistant, globally available, and provides transparent guarantees about future operations of the platform. With Ethereum, we can eliminate middlemen and counterparty risk at the currency level. Fulfilment and settlement will take place simultaneously, based on the terms of the agreed Smart Contract between buyers and sellers at the time of purchase, essentially eliminating lengthy transaction lead times that are commonplace. Just-in-time purchasing of Natural Assets that is transparent and global in scale, will finally be a reality.
Market makers, such as impactChoice & others, will have access to Smart Contracts & API’s to enable direct integration into their systems, for embedding Natural Assets directly into their products, services and / or solutions. The ability to mitigate environmental impact in complex, integrated manufacturing processes and supply-chains, on a pay-as-you-go, just-in-time fashion, becomes truly feasible, reducing corporate risk and exposure to hedged Natural Assets. Direct sales to business and consumers will be facilitated by using applications that are accessible by multiple device types and operating systems (e.g. desktop browser, Mobile iOS / Android, etc.), whilst specific Smart Contracts and API’s will cater for IoT connected devices. We believe that the proliferation of smart devices will ultimately result in a requirement for device enabled environmental impact mitigation, via self-regulated Smart Contract interfaces.The development and the adoption of Earth Tokenas the underpinning store of value and settlement mechanism of the Natural Asset Exchange can foster unprecedented accessibility and transpar ency in the trading of Natural Assets. It will truly democratize global efforts that are aiming to address climate change adaptation, at corporate, consumer and IoT device levels, for the sake of future generations.