IEEE P2418.7 Standard for the Use of Blockchain in Supply Chain Finance
In traditional supply chain finance implementations, the compliance check is often done manually by financial institutions to compare the different paper-based trade finance documents. In such scenarios, high labor costs need to be spent while high fraud risks still exist, and it’s hard for small and medium enterprises to be covered. Blockchain technology can play a vital role in solving many SCF-related problems
Blockchain technology, as a basic infrastructure for exchanging value and information over the Internet, has been tried to create new solutions for SCF, aiming to reduce the complexity and make data sharing more transparent, accurate, efficient and secure, which could facilitate the businesses to come together in partnership, to fulfill small and medium enterprises financial demand and to speed up the funding flows throughout the supply chain.
Different Blockchain-driven SCF implementations may lead to fragmentation and it’s hard to be expanded in the future. Standardization of blockchain use in SCF will define a general framework, provide a base common understanding enabling innovation in supply chain finance and promote industry development
Public consultation closes July 23rd.
