An Efficient DeFi-based Data Warehousing Approach in Supply Chain Finance

Abstract

In today’s world, industries are looking to improve their productivity through effective logistics and supply chain management. The efficiency of the supply chain in dealing with the huge volumes of data plays a key role in the overall performance of businesses. Supply Chain Finance (SCF) aims to improve the robustness and efficiency of companies’ supply lines. However, SCF suffers from problems like fraudulent transactions, information inconsistencies, and delays in financial transfers. Decentralized finance (Defi) is a new blockchain paradigm that tackles traditional finance problems. This paper proposes a Defi-based model on a hybrid private-public blockchain for SCF. Our model improves the efficiency of SCF by eliminating costs of using centralized financial institutions, reducing overload costs due to better estimation of the required amount of products, and also decreasing supply delays for the requested products. We also evaluated our model using the SWOT technique for adopting it in the supply chain.