Title: Application of blockchain technology in trade finance

Authors: G.V.S. Nalini; B. Sindhu

Addresses: School of Management Studies, JNTUH, Kukatpally, Hyderabad, Telangana, 500072, India ' School of Management Studies, JNTUH, Kukatpally, Hyderabad, Telangana, 500072, India

Abstract: Innovations are due to the problems faced. Traditional trade finance faces two important problems: firstly, trade finance in the context of international trade involves many participants, including banks and financial institutions, and secondly, numerous documents are to be prepared and shared with the parties concerned. Blockchain technology with its promising basic features like accessibility, traceability, immutability and digitalisation reduces the number of participants, processing time, and minimises costs in trade financing. This paper is an attempt to find the problems involved in traditional trade finance and the adoption of blockchain technology to resolve these problems. The structure of this paper has three parts: the first part deals with the adoption of blockchain technology to resolve the problems in traditional trade finance; the second part deals with an outline of the blockchain trade consortium; and the third part deals with challenges in the adoption of blockchain and vectors to improve the performance of blockchain technology.

Keywords: trade finance; traditional trade finance; blockchain technology; blockchain-based trade finance consortium; vectors of development.

DOI: 10.1504/IJBC.2024.140168

International Journal of Blockchains and Cryptocurrencies, 2024 Vol.5 No.1, pp.67 - 81

Received: 27 Feb 2024
Accepted: 01 Jun 2024
Published online: 26 Jul 2024 *

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