Foundational premises and value drivers of blockchain-driven supply chains: the trade finance experience

Abstract

The recent hype about blockchain technology and its abilities has led to a reconsideration of existing structures in the field of finance. With a bigger focus on efficient transaction processing, interaction and automation, the underlying concept of a distributed ledger has also showed feasibility for a much broader field. For this reason, the objective of this article lies in a first evaluation of this technology for blockchain-driven supply chains by taking a closer look at potential use cases and existing applications, particularly supply chain operations and trade finance. By aligning all relevant data streams on a digital scale, it is possible not only to make trading processes significantly more functional, but also to improve regulatory control through elimination of redundant practices. A digital, autonomous, decentralized, and distributed network would be applicable to a countless number of services. The initial concept for trade finance provides here a foundation to close the gap between vague assumptions and practical contributions in supply chain management.