Framework for Design and Development of Blockchain Applications Using Smart Contracts

Abstract

Blockchain technology is generating a lot of buzz due to its potential to disrupt many existing industries and business processes. Blockchain technology, which was first developed as part of Bitcoin’s underlying infrastructure, provides a framework for decentralized and transparent transaction management amongst untrustworthy parties. Many people feel that this blockchain component would alter existing supply chain processes, which often include many untrustworthy organizations, from raw material extraction to the ultimate consumption of a finished product by the end customer. While numerous claims have been made about its apparent benefits in supply chain management, there have only been a few technological applications established that are beneficial in real-world circumstances. A smart contract is a computer protocol that digitally enables, validates, and enforces contract fulfillment utilizing Blockchain technology. Because smart contracts are trackable and irreversible and enable the performance of credible transactions without the involvement of third parties, they can be used to effectively replace existing supply chain mechanisms. In this paper, we present a system for facilitating the sale of products between untrustworthy organizations using smart contract technology to replace the “letter of credit” payment mechanism effectively. An innovative dispute resolution method is created, and decentralized software is built and deployed on the Ethereum blockchain using Solidity smart contracts. We’ve demonstrated how to create a revolutionary public decentralized application that may take the place of well-established conventional instruments like letters of credit using just tools that are open source. We also create a dispute resolution algorithm that, in theory, outperforms other accessible online conflict settlement tools.