Blockchain-enabled digital assets tokenization for cyber-physical traceability in E-commerce logistics financing

Abstract

E-commerce logistics financing drives growth in small and medium-sized logistics companies. Despite the popularity, its adoption faces vexing challenges in supply chains, such as (i) asymmetry arising from information silos, (ii) hidden centrality in existing information technology solutions, and (iii) opaqueness in information ownership. Blockchain technology, with its native constructs, such as shared ledger, smart contracts, and tokens, is deemed promising to alleviate these concerns. Hence, this study introduces a blockchain-enabled cyber-physical traceability system for logistics financing based on digital asset tokenization. The tokenization of digital assets brings visibility and traceability into the supply chain’s cyber (information flow) and physical (logistics flow) transactions. Subsequently, we (i) introduce the design and implementation of the proposed traceability system and (ii) demonstrate the application of the proposed system in logistics financing. Some of the resulting implications include: (i) The information sharing through blockchain technology brings resolution into the operations in the supply chain for logistics financing. (ii) The system minimizes the required upfront expenditure and provides flexible access to computing resources to promote the system’s adoption by the stakeholders.