Distributed Timber Trading Mechanism Based on Blockchain Smart Contracts

Abstract

ABSTRACT The timber industry, characterized by its vast supply chains and complex trade networks, faces challenges such as inefficiency, vulnerability to fraud, lack of transparency, and fairness in trading practices. Addressing these challenges, we propose a distributed timber trading mechanism based on blockchain technology and smart contracts. The mechanism introduces a strategy to match timber trading orders and a model to manage trader credibility. Our study also developed a credit management model that uses the entropy weight method to assess the credibility of traders based on their transaction history and their commitment to sustainable practices. The key findings and results of this study underscore the potential of blockchain technology and smart contracts to revolutionize the timber industry by addressing its long‐standing challenges. The distributed timber trading mechanism that we propose sets the foundation for a more sustainable, transparent, and efficient marketplace.