An Intrinsic Review on Trade Finance Using Blockchain

This paper presents how blockchain can be leveraged in the domain of trade finance, to provide an adept model, which simplifies the end-to-end process. The paper elaborates upon the integration of the components of trade finance with blockchain. We discuss the traditional trade finance model and how the integrated blockchain model helps mitigate its pain points. Using this integrated model, a trade transaction that would normally take close to a week can be successfully executed in, approximately, a quarter of a day. The process flow of the events of a transaction powered by blockchain are elucidated upon. This paper highlights how distributed ledgers, smart contracts, events, and system integration will power trade finance. The key features which are focused on include - authentication, decentralization, immutability, and consensus mechanisms. Furthermore, we explore the benefits and functionalities of adopting blockchain, which includes - efficiency, transparency, collaboration, and auditability and the way they can be achieved without compromising security, confidentiality, and interoperability. The objective of the paper is to illustrate how blockchain technology can reshape the landscape of Trade Finance and improve financial mechanisms.