Blockchain-based intelligent contract for factoring business in supply chains

Factoring business, an important aspect in the supply chain finance field, has significant potential in adopting blockchain-based intelligent contract technology. Based on the existing theories of factoring business in supply chains, this paper conducts a coupling analysis between blockchain technology and supply chain factoring business. Specifically, we propose the application scenarios of blockchain-based intelligent contract technology in the supply chain factoring business from three aspects: the division and transfer of creditors' rights certificate, the factoring financing of upstream suppliers, and the due payment of core enterprises, and elaborate their implementation processes. Furthermore, from a game theoretical perspective, we analyze the mechanism of the key technology implementation of the intelligent contract to verify whether the nodes on the blockchains will follow the relevant protocols to automatically execute them. Finally, we conduct a three-way game analysis of the supply chain factor financing process and obtain an equilibrium solution based on the principle of utility maximization, which highlights the optimization effect of the intelligent contract technology on the decision-making behavior of individual entities in the supply chain.

Automated summary

This paper discusses the potential application of blockchain-based smart contract technology in supply chain factoring business, and conducts a detailed study from the perspectives of implementation process, technical mechanism, and game analysis, highlighting the optimization effect of smart contract technology on the decision-making behavior of individual entities in the supply chain.