Blockchain-based intelligent contract for factoring business in supply chains

Document Type

Article

Publication Date

1-1-2022

Abstract

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.

Publication Title

Annals of Operations Research

Volume

308

Issue

1-2

First Page

777

Last Page

797

Digital Object Identifier (DOI)

10.1007/s10479-020-03601-z

ISSN

02545330

E-ISSN

15729338

Rights

Zheng, K., Zhang, Z. & Gauthier, J. Blockchain-based intelligent contract for factoring business in supply chains. Ann Oper Res 308, 777–797 (2022). https://doi.org/10.1007/s10479-020-03601-z

Link to Full Text

Share

COinS