Design and value analysis of the blockchain-based port logistics financial platform

Abstract

ABSTRACT Time-consuming ocean transportation for international trades requires enterprises to advance payments for goods, which can be fatal for small and medium enterprises with insufficient self-owned capital. Logistics finance is an effective solution for tackling this problem. However, traditional logistics finance has long been plagued by information asymmetry, tremendous paperwork, and long financing cycles. As a distributed database with characteristics of transparency, traceability, and immutability, blockchain technology shows good potential in addressing pain points on traditional logistics financing platforms. This paper focuses on the operational mechanism and value analysis of the blockchain-based port logistics finance platform. The conceptual architecture of the blockchain-based port logistics finance platform is constructed, and a value analysis model based on the Newsboy Model is established for quantitatively analysing the platform’s value. The results revealed that the introduction of the blockchain into port logistics financing can significantly improve small to medium-sized enterprises’ profitability by providing reliable financing channels. The results also indicate that participants’ profit on the blockchain-based platform may be influenced by the speed of market expansion, initial capital size, and financing cost. This paper also discusses theoretical and managerial implications by providing insights into the participants’ decision-making on the platform under different constraints.