Evaluating the Effectiveness of Blockchain in Supply Chain Finance

The Covid-19 pandemic has highlighted the inadequacies of traditional paper-based supply chain finance and trade systems. Digitalization offers a solution to reduce friction in global trade. This evaluation examines the latest commercial applications and theoretical perspectives on the use of blockchain technology in supply chain finance systems as a medium for digitalization. We argue that blockchain technology has the potential to revolutionize distribution network finance by eliminating inefficiencies and improving communication between parties, which are currently major obstacles to progress in this field. We examine the financial, operational, and legal challenges in supply chain finance and evaluate how blockchain technology can address these challenges through a review of the literature and analysis of industrial approaches. We discuss both the limitations and benefits of blockchain technology and identify the necessary conditions for the implementation of blockchain-enabled supply chains.