An Exploratory Study on the Adoption of the Smart Contract Letter of Credit

This paper explores a potential paradigm shift in trade finance utilizing blockchain technology. Traditionally, the centralized operating model has governed trade finance and the manner in which traders handle business processes. However, such heavy reliance on centralized authorities has made for poor performance, the lack of flexibility and transparency, and vulnerability to malicious alteration. The blockchain, as a distributed ledger technology (DLT), has attracted growing attention and has the potential to disrupt legacy finance procedures such as payment by letter of credit (L/C). International trade players may benefit from the technological reengineering of financial processes through the implementation of blockchain- and smart contract-based platforms. From the conceptual perspective of a paradigm shift, this study analyzes the feasibility of blockchain innovation in trade finance through modern blockchain-based L/C initiatives. Moreover, this study also explores blockchain applications in terms of logistics tracking and how it integrates with trade finance procedures. This study contributes to the understanding of a blockchain paradigm shift with a multi-case study. The results may illuminate the potential future application of blockchain finance and provide researchers with an illustrative example of other finance-related capabilities. Studies of trade-related topics such as customs clearances, insurance, and logistics applications need to be addressed in the future to create a comprehensively trustless environment and facilitate the automation of trade.

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Exploring blockchain technology in international trade

Industrial Management & Data Systems ◽

10.1108/imds-12-2018-0568 ◽

2019 ◽

Vol ahead-of-print (ahead-of-print) ◽

Cited By ~ 7

Author(s):

Shuchih Ernest Chang ◽

Yi-Chian Chen ◽

Tzu-Ching Wu

Keyword(s):

International Trade ◽

Business Process ◽

Process Model ◽

Business Processes ◽

Process Efficiency ◽

Practical Case ◽

Content Type ◽

Letter Of Credit ◽

Blockchain Technology ◽

Smart Contract

Purpose The purpose of this paper is to explore the applicability of blockchain technology in international trade process from a perspective of letter of credit payment. Design/methodology/approach A blockchain-based re-engineering process is designed by employing the blockchain and its affiliated smart contract technology to harvest the benefits of distributed ledger and distributed business workflow automation. Findings Comparative analysis and feasibility study were conducted to identify and validate the prospects, in terms of facilitating process flow and enhancing overall trade performance, of the proposed blockchain-based international trade process model. Practical implications Traditional trade processes suffer from a great number of issues about intermediaries, information latency and trust, which, in turn, hinder overall process efficiency. The emerging blockchain technology may have potentials to mitigate those issues by revolutionizing business processes across enterprise borders in various industries. Originality/value This study contributes to the conceptual design of a blockchain- and smart-contract-based process along with a provision of practical case in business process re-engineering. Further endeavors devoted to blockchain research and application across different sectors are suggested to reach better performance of business process operations.

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Blockhain technologies using in international trade contractual relations

Economics. Finances. Law ◽

10.37634/efp.2020.6(1).3 ◽

2020 ◽

pp. 16-20

Author(s):

Kseniia KOVTUNENKO ◽

Oleksandr BUT-HUSAIM

Keyword(s):

International Trade ◽

Cash Flow ◽

Document Management ◽

Smart Contracts ◽

Main Method ◽

Letter Of Credit ◽

Business Operations ◽

Smart Contract ◽

Logistics Services ◽

Contractual Relations

The article shows the features of innovative technologies in the development of document management of international trade. Blockchain is defined as the most stable, transparent and secure system. It allows businesses to accelerate the workflow and business operations associated with signing a contract, making payments and transferring information about the supply of goods or services to logistics services. We suggest using a smart contract as the main technology that can improve the system of building contractual relations between the parties to international trade. The article identifies the main problems on the way to using technology, as well as the benefits of using smart contracts. The study shows the ways of implementing technology in a business. The smart contact technology allows you to simplify the process of using a letter of credit as the main method of payment in international trade, as well as monitor cash flow, the circulation of documents and goods.

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Application of Distributed Ledger Technology for Settlements by Letters of Credit

Actual Problems of Russian Law ◽

10.17803/1994-1471.2020.115.6.064-072 ◽

2020 ◽

Vol 15 (6) ◽

pp. 64-72

Author(s):

L. G. Efimova

Keyword(s):

Financial Intermediaries ◽

Smart Contracts ◽

Legal Analysis ◽

Letter Of Credit ◽

Blockchain Technology ◽

Distributed Ledger ◽

Smart Contract ◽

Distributed Ledger Technology ◽

New Form ◽

Letters Of Credit

The paper carries out a legal analysis of three models of settlements by letters of credit with the use of distributed ledger technology. First, this refers to the model of settlements that uses blockchain as a way of transferring documents under the letter of credit. Second, the author investigates the model of settlements where two smart contracts are used. In the author’s view, such smart contracts should be seen as a way of executing the contracts that, in practice, form the settlement procedure with the use of letters of credit. Third, the most interesting is the settlement model where the payer and the recipient of funds (payee) enter into one smart contract that provides non-cash settlements between them with the use of the P2P service. There is no financial intermediary that organizes non-cash settlements in this settlement model. This difference makes it possible to conclude that settlements similar to settlements with the use of letters by credit via blockchain technology and carried out on the principle of P2P, should be considered as a new form of non-cash settlements. The peculiarity of this form of non-cash settlements is the opportunity given to direct participants of the settlement to fulfil their monetary obligations without using cash and without any assistance of financial intermediaries.

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A hospital clerkship program for dental students: an exploratory study

Journal of Dental Education ◽

10.1002/j.0022-0337.1969.33.2.tb00173.x ◽

1969 ◽

Vol 33 (2) ◽

pp. 224-229

Author(s):

EA Stuebner ◽

RP Johnson

Keyword(s):

Exploratory Study ◽

Dental Students

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Classifying Disfluencies in Preschool- and School-Age Spanish–English Bilinguals Who Do Not Stutter: An Exploratory Study

Perspectives of the ASHA Special Interest Groups ◽

10.1044/2019_persp-19-00164 ◽

2020 ◽

Vol 5 (1) ◽

pp. 119-130

Author(s):

Raúl Rojas ◽

Farzan Irani

Keyword(s):

Exploratory Study ◽

Evidence Base ◽

Medium Effect ◽

Bilingual Children ◽

Linear Regression Models ◽

Cross Sectional ◽

Total Percentage ◽

Narrative Production ◽

Language Measures ◽

Mean Length Of Utterance

Purpose This exploratory study examined the language skills and the type and frequency of disfluencies in the spoken narrative production of Spanish–English bilingual children who do not stutter. Method A cross-sectional sample of 29 bilingual students (16 boys and 13 girls) enrolled in grades prekindergarten through Grade 4 produced a total of 58 narrative retell language samples in English and Spanish. Key outcome measures in each language included the percentage of normal (%ND) and stuttering-like (%SLD) disfluencies, percentage of words in mazes (%MzWds), number of total words, number of different words, and mean length of utterance in words. Results Cross-linguistic, pairwise comparisons revealed significant differences with medium effect sizes for %ND and %MzWds (both lower for English) as well as for number of different words (lower for Spanish). On average, the total percentage of mazed words was higher than 10% in both languages, a pattern driven primarily by %ND; %SLDs were below 1% in both languages. Multiple linear regression models for %ND and %SLD in each language indicated that %MzWds was the primary predictor across languages beyond other language measures and demographic variables. Conclusions The findings extend the evidence base with regard to the frequency and type of disfluencies that can be expected in bilingual children who do not stutter in grades prekindergarten to Grade 4. The data indicate that %MzWds and %ND can similarly index the normal disfluencies of bilingual children during narrative production. The potential clinical implications of the findings from this study are discussed.

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