Simulation Comparison Of Smart Contract Letter Of Credit And Traditional Letter Of Credit Financing Model

First of all,this paper first analyzes and discusses the problems and disadvantages of the traditional letter of credit financing model,and designs a smart contract based on the underlying technology of the blockchain based on the rapid development of blockchain technology in recent years and related overseas research reports.Then,based on the theory of bank credit mechanism,pledge credit mechanism,etc.,from the perspective of privacy leakage caused by blockchain technology,the mechanism analysis of the risks existing in the traditional letter of credit financing model and the smart contract credit financing model is carried out.Then it is demonstrated that the newly constructed smart contract letter of credit can solve the problems existing in the traditional letter of credit financing model to a certain extent.Secondly,by comparing two different L/C financing models,this article will discuss the complex financing process,high financing risk,high financing interest rate,and difficult financing legal supervision of the smart contract L/C financing model to the traditional L/C financing model.improvement.At the same time,by constructing a simulated tertiary market and assigning simulated assignments to the participants,the simulated data situation of each participant in each cycle is calculated,and the phenomena fed back by the data are analyzed.In the end,it is concluded that the smart contract L/C financing model can not only effectively solve the problems existing in the financing efficiency and financing process of the traditional L/C financing model,but also obtain the same results through the modeling and assignment analysis of the numerical simulation model.As a result,for the financing subject to choose different financing models under the same circumstances,the risk,efficiency and yield of the smart contract L/C financing model are better than those of the traditional L/C financing model.