A Case Study Of Supply Chain Finance Supported By Block Chain Technology

Supply Chain Finance has gain rapid development in recently years.It provides rigid credit to not only upstream but also downstream enterprises,under the core enterprises' endorsement.But in reality,its financing scope could only cover the enterprises who are within the “strategic boundaries” of the core enterprise,due to asymmetric information and financing complexity caused by the long supply chain.Block Chain Technology,however,is emerging great application value as a new technology recently.It makes transaction credit transferable from “strategic boundaries” to other small enterprises by using consecutive transaction as authenticity proof,which brings trust between different unit.Thus,possibility to solve small enterprise's financing problem is offered in certain level.Take “U Best Baas” as an example,this article attempts to analyze the application of Block Chain Technology in the field of health industry.Firstly,by analyzing the traditional Supply Chain Finance,its disadvantageconcludes.Secondly,this article focuses on how to overcome the disadvantage of traditional Supply Chain Based on the analysis on “U Best Baas”,which not only analyzes how consensus mechanism produces credit via data stored and transacted on a block chain,but also studies how to secure the date by Block Chain,how smart contract works,and how the process of this case goes on,via transaction on the block chain.What is more,by comparing “U Best Baas” with other mainstream consortium platform,conclusions about the advantage and disadvantage of each are therefore made afterwards,which could offer certain suggestion for future.This artical,differing from existing study which stays at conceptual level only for the application of block chain,innovatively combines Block Chain Technology and Supply Chain Finance,together with the case analysis of “U Best Baas”.Documentary analysis and case analysis method are adopted,through which it tells how Supply Chain Finance supported by Block Chain Technology could transfer the credit to small enterprises and aide them to get financing service.Through method of comparative analysis,advantage and disadvantage of different mainstream platform are revealed,and thus it indicates the necessity to build a huge universal block chain financing platform which consists of enterprises from all kinds of business line and refuses to be dominated by any core enterprises..