Abstract
The Letter-of-Credit (L/C) has been an integral component of international trade, facilitating trust between global buyers and sellers. However, inherent flaws, such as opacity, inefficient verification mechanisms, and cumbersome processes, have plagued the traditional L/C system. In the context of an increasingly digitized world, these challenges remain prevalent. This paper introduces a novel approach to international trade transactions using blockchain technologies, including NFTs, smart contracts, and the InterPlanetary File System (IPFS). By reinventing the L/C process, we present a streamlined, robust, and transparent system tested across four major EVM-support platforms. Our findings underscore the potential of blockchain to revolutionize the L/C landscape, offering improved efficiency, reliability, and security.
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Duy, P.D.X. et al. (2024). Blockchain Solutions to the Letter-of-Credit Problem: Leveraging NFTs, Smart Contracts, and IPFS. In: Luo, M., Zhang, LJ. (eds) Services Computing – SCC 2023. SCC 2023. Lecture Notes in Computer Science, vol 14211. Springer, Cham. https://doi.org/10.1007/978-3-031-51674-0_4
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