A Study on the Revitalization Method of a Block Chain-based Letter of Credit

Abstract

Purpose This study introduces the necessity and expected effects of the introduction of block chain technology as the cause and solution of the recent decline in the use of letters of credit, and introduces examples of block chain L/C. The purpose is to present opinions and tasks for the commercialization of the block chain letter of credit platform. Design/Methodology/Approach This paper is composed of five chapters based on literature studies. Chapter deals with the introduction of this paper and Chapter explains The electronic trend of letters of credit and the prospect of block chain based L/C. Chapter deals with Case Study of block chain L/C in international commerce transaction. Chapter deals with solution task for block chain L/C in international commerce transaction. Chapter V concludes this paper. Findings The block chain based L/C platform with strong security and de-neutralization characteristics can fundamentally prevent trade fraud caused by forgery and alteration of shipping documents. Research Implications In the case of a trade transaction involving multiple parties, the efficiency of the entire supply chain management of the trade transaction cannot be achieved with a letter of credit platform alone. Therefore, it is necessary to consider the issue of interlocking with the trade trading platform being developed at each stage of the trade, standardization of block chain technology and legal recognition of smart contracts, and strive for sound trade growth through the use of trust-based platforms.