Blockchain Technology in Supply Chain Financing: Applications and Impacts

Abstract

This research underscores the critical role of supply chain management in the globalized economy and the challenges posed by traditional financing models, such as information asymmetry and low capital turnover efficiency. The paper examines how blockchain's decentralized and immutable nature addresses these issues, enhancing transparency, security, and efficiency in supply chain data sharing. Blockchain has potential to reduce transaction costs, improve transparency, and secure supply chain financing. The research also employs case study analysis, scrutinizing the integration of blockchain in three distinct industries: Walmart's food safety initiative, Maersk and IBM's TradeLens platform, and Everledger's diamond supply chain tracking. These cases illustrate the practical application and benefits of blockchain in enhancing financing efficiency and traceability. While blockchain offers significant advantages, such as improved capital turnover and reduced transaction costs, it also faces limitations related to technological maturity, legal regulations, and market acceptance. It advocates for further research, policy support, and technological innovation to harness blockchain's full potential in supply chain financing.