A Novel Supply Chain Model Based on Smart Contract

Abstract

Facing on bursting of the huge quantity of trade, the problem of finance by micro and small firms, the expansion of business development of core enterprise in supply chain, the development of comprehensive finance services, it is not well worked by traditional ways. Moreover it is more and more restricting the development of supply chain. Considering the advantages of automatic executing and high efficiency of smart contract, the feature of decentralization, security, trustworthiness and anti-tampering of blockchain, it was presented a novel supply chain model based on smart contract and blockchain for solving the problem totally. The model relied on the core enterprise of supply chain, integrated the upstream and downstream industries, constructed a consortium chain, that consisted of core enterprise, financial institutions, suppliers and dealers, formed an encrypted credit named ET (Electronic Trust) based on the trustworthiness of the trust industries chain. Actually, ET is equaled to the actual credit, it could be paid for the suppliers according to the cargo value before the last settlement. So the ET could combine the virtual and actual capital. Thus it also could further solve the common pain points of supply chain.