1
Decision support department, Faculty of Computers and Informatics, Zagazig University, Zagazig 44519, Sharqiyah, Egypt
(zenathmed@zu.edu.eg)
2
Decision support department, Faculty of Computers and Informatics, Zagazig University, Zagazig 44519, Sharqiyah, Egypt
(mmsabe@zu.edu.eg)
3
Decision support department, Faculty of Computers and Informatics, Zagazig University, Zagazig 44519, Sharqiyah, Egypt
(SZSoliman@fci.zu.edu.eg)
Abstract :
This paper aims to explore the impact of Smart Blockchain-based Letters of Credit (BTLOC) on business transactions in the realm of trade finance. The involvement of a third party in business transactions often leads to complications such as process heterogeneity, increased complexity, information security risks, and higher costs. To address these challenges, this research proposes an innovative solution for activities dependent on third-party participation, specifically in the context of global trading. To provide a comprehensive understanding of this solution, the study employs business process modeling in a transaction scenario, offering a deeper insight into its mechanics. The implementation of platforms built upon blockchain technology (BT), and smart contracts has the potential to significantly reshape and streamline business procedures, thereby benefiting participants engaged in global trade. This research primarily focuses on investigating the theoretical aspects and feasibility of incorporating BT into global trade, considering a paradigm shift in the field. A novel BTLOC is introduced as a key element of the research, enabling the examination of its practicality. Additionally, we explore the applications of BTLOC in real case study of international Trading and explore its potential integration into trade finance processes. Through a multi-case analysis, this research contributes to the understanding of the paradigm shift facilitated by BT. The findings shed light on the future potential applications of blockchain in finance and serve as an illustrative example of the extended capabilities associated with financial processes.
Keywords :
Smart Blockchain; ebusiness; predictive analytics; decision management; Operational analytics; AES encryption.
References :
[1] Zhao, J.L., Fan, S. and Yan, J., 2016. Overview of business innovations and research opportunities in BT and introduction to the special issue. Financial innovation, 2(1), pp.1-7.
[2] Toorajipour, R., Oghazi, P., Sohrabpour, V., Patel, P.C. and Mostaghel, R., 2022. Block by block: A BT-based peer-to-peer business transaction for global trading. Technological Forecasting and Social Change, 180, p.121714.
[3] Pal, A., Tiwari, C.K. and Haldar, N., 2021. BT for business management: Applications, challenges and potentials. The Journal of High Technology Management Research, 32(2), p.100414.
[4] Grover, P., Kar, A.K. and Vigneswara Ilavarasan, P., 2018, October. BT for businesses: A systematic literature review. In Conference on e-Business, e-Services and e-Society (pp. 325-336). Springer, Cham.
[5] Silva, D., Guerreiro, S. and Sousa, P., 2018, May. Decentralized enforcement of business process control using BT. In Enterprise Engineering Working Conference (pp. 69-87). Springer, Cham.
[6] Farshidi, S., Jansen, S., España, S. and Verkleij, J., 2020. Decision support for BT platform selection: Three industry case studies. IEEE Activities on Engineering Management, 67(4), pp.1109-1128.
[7] Viriyasitavat, W., Anuphaptrirong, T. and Hoonsopon, D., 2019. When BT meets Internet of Things: Characteristics, challenges, and business opportunities. Journal of industrial information integration, 15, pp.21-28.
[8] Viriyasitavat, W. and Hoonsopon, D., 2019. BT characteristics and consensus in modern business processes. Journal of Industrial Information Integration, 13, pp.32-39. [9] Schlecht, L., Schneider, S. and Buchwald, A., 2021. The prospective value creation potential of BT in business models: A delphi study. Technological Forecasting and Social Change, 166, p.120601.
[10] Morkunas, V.J., Paschen, J. and Boon, E., 2019. How BT technologies impact your business model. Business Horizons, 62(3), pp.295-306.
[11] Min, H., 2019. BT technology for enhancing supply chain resilience. Business Horizons, 62(1), pp.35-45.
[12] Rahman, M.S., Chamikara, M.A.P., Khalil, I. and Bouras, A., 2022. BT-of-BTs: An interoperable BT platform for ensuring IoT data integrity in smart city. Journal of Industrial Information Integration, 30, p.100408.
[13] Jain, G., Kamble, S.S., Ndubisi, N.O., Shrivastava, A., Belhadi, A. and Venkatesh, M., 2022. Antecedents of BT-Enabled E-commerce Platforms (BEEP) adoption by customers–A study of second-hand small and medium apparel retailers. Journal of Business Research, 149, pp.576-588.
[14] Oudani, M., Sebbar, A., Zkik, K., El Harraki, I. and Belhadi, A., 2022. Green block-chain based IoT for secured supply chain of hazardous materials. Computers & Industrial Engineering, p.108814.
[15] Köhler, S., Bager, S. and Pizzol, M., 2022. Sustainability standards and BT in agro-food supply chains: Synergies and conflicts. Technological Forecasting and Social Change, 185, p.122094.
[16] Jovanovic, M., Kostić, N., Sebastian, I.M. and Sedej, T., 2022. Managing a BT-based platform ecosystem for industry-wide adoption: The case of TradeLens. Technological Forecasting and Social Change, 184, p.121981.
[17] Zhang, J., Zhang, X., Liu, W., Ji, M. and Mishra, A.R., 2022. Critical success factors of BT technology to implement the sustainable supply chain using an extended decision-making approach. Technological Forecasting and Social Change, 182, p.121881.
[18] Gligor, D.M., Pillai, K.G. and Golgeci, I., 2021. Theorizing the dark side of business-to-business relationships in the era of AI, big data, and BT. Journal of Business Research, 133, pp.79-88.
[19] Sharma, P., Kingshott, R., Leung, T.Y. and Malik, A., 2022. Dark side of business-to-business (B2B) relationships. Journal of Business Research, 144, pp.1186-1195.
[20] Dehghani, M., Kennedy, R.W., Mashatan, A., Rese, A. and Karavidas, D., 2022. High interest, low adoption. A mixed-method investigation into the factors influencing organisational adoption of BT technology. Journal of Business Research, 149, pp.393-411.
[21] Bai, C., Quayson, M. and Sarkis, J., 2022. Analysis of BT's enablers for improving sustainable supply chain transparency in Africa cocoa industry. Journal of Cleaner Production, 358, p.131896.
[22] Chang, S.E., Luo, H.L. and Chen, Y., 2019. BT-enabled trade finance innovation: A potential paradigm shift on using letter of credit. Sustainability, 12(1), p.188.
[23] Nicolau, C., Nichifor, E., Munteanu, D. and Bărbulescu, O., 2022. Decoding Business Potential for Digital Sustainable Entrepreneurship: What Romanian Entrepreneurs Think and Do for the Future. Sustainability, 14(20), p.13636.
[24] Chuah, J.C., 2022. Money Laundering Considerations in BT-based Maritime Trade and Commerce. European Journal of Risk Regulation, pp.1-16.
[25] Nathan, J. and Jacobs, B., 2020. BT consortium networks: Adding security and trust in financial services. Journal of Corporate Accounting & Finance, 31(2), pp.29-33.
[26] Jain, N. and Sedamkar, R.R., 2020, November. A BT technology approach for the security and trust in trade finance. In 2020 14th International Conference on Innovations in Information Technology (IIT) (pp. 192-197). IEEE.
| Style | # |
|---|---|
| MLA | Zenat Mohamed, Mahmoud M. Ismail, Shereen Zaki. "The Digital Revolution in Trade Finance: Exploring The Impact of Smart Blockchain-Based Letters of Credit On E-business Transactions." International Journal of Advances in Applied Computational Intelligence, Vol. 3, No. 1, 2023 ,PP. 53-63 (Doi : https://doi.org/10.54216/IJAACI.030105) |
| APA | Zenat Mohamed, Mahmoud M. Ismail, Shereen Zaki. (2023). The Digital Revolution in Trade Finance: Exploring The Impact of Smart Blockchain-Based Letters of Credit On E-business Transactions. Journal of International Journal of Advances in Applied Computational Intelligence, 3 ( 1 ), 53-63 (Doi : https://doi.org/10.54216/IJAACI.030105) |
| Chicago | Zenat Mohamed, Mahmoud M. Ismail, Shereen Zaki. "The Digital Revolution in Trade Finance: Exploring The Impact of Smart Blockchain-Based Letters of Credit On E-business Transactions." Journal of International Journal of Advances in Applied Computational Intelligence, 3 no. 1 (2023): 53-63 (Doi : https://doi.org/10.54216/IJAACI.030105) |
| Harvard | Zenat Mohamed, Mahmoud M. Ismail, Shereen Zaki. (2023). The Digital Revolution in Trade Finance: Exploring The Impact of Smart Blockchain-Based Letters of Credit On E-business Transactions. Journal of International Journal of Advances in Applied Computational Intelligence, 3 ( 1 ), 53-63 (Doi : https://doi.org/10.54216/IJAACI.030105) |
| Vancouver | Zenat Mohamed, Mahmoud M. Ismail, Shereen Zaki. The Digital Revolution in Trade Finance: Exploring The Impact of Smart Blockchain-Based Letters of Credit On E-business Transactions. Journal of International Journal of Advances in Applied Computational Intelligence, (2023); 3 ( 1 ): 53-63 (Doi : https://doi.org/10.54216/IJAACI.030105) |
| IEEE | Zenat Mohamed, Mahmoud M. Ismail, Shereen Zaki, The Digital Revolution in Trade Finance: Exploring The Impact of Smart Blockchain-Based Letters of Credit On E-business Transactions, Journal of International Journal of Advances in Applied Computational Intelligence, Vol. 3 , No. 1 , (2023) : 53-63 (Doi : https://doi.org/10.54216/IJAACI.030105) |