Research on Letter of Credit Platform Based on Blockchains

Letter of credit is widely used in international trade. However, traditional letter of credit is risky because of low efficiency, high possibility of being cheated and high costs. The block chains technology, with its features including being decentralized, unable to be tampered with, and transparent in information, has developed the letters of credit platform. Based on three principles, referring to security, convenience, and intelligence respectively, this paper designs a letter of credit platform based on blockchains aiming at realizing efficient, safe and low-cost cross-border transaction business of blockchains letter of credit. This platform can also be optimized and improved with gradually developed technologies blockchains, in order to further promote the convenience and intelligence of business processes. Keywords-blockchains, letter of credit, international trade, smart contracts.