Supply Chain Finance Innovation Using Blockchain

Blockchain, the underlying technology of digital currency, such as Bitcoin, has the characteristics of decentralization, stability, security, anonymity, and nontampering. Blockchain is being applied in an increasing number of fields. Supply chain finance is a financing model in which banks connect core enterprises with upstream and downstream enterprises to provide flexible financial products and services. In the traditional supply chain finance, the core enterprises with strong competitiveness and a large scale play an irreplaceable role in managing the supply chain information flow, logistics, and capital flow, which results in inequality and information asymmetry. Fraud in supply chain finance is also very serious. To solve the problems of the traditional supply chain finance, in this article, we build a new type of supply chain financial platform that uses blockchain technology to manage the whole process. This supply chain financial platform solves the problem of nontrust among the participants in the supply chain, improves the efficiency of the capital flow and information flow, reduces costs, and provides better financial services to the relevant parties in the supply chain. To protect users' privacy, we propose a new method of using homomorphic encryption in the blockchain to meet the needs of sensitive data privacy protection in supply chain financial scenarios.