| dc.description.abstract | Throughout the process of international trade, Letter of Credit （L/C） had always played an essential role and cannot be easily replaced because L/C served as the fundamental guarantee of rights for both Buyer and Seller during trade.
The core concept of the Blockchain Technology is to focus on “Decentralization” and “Distribution Ledger Technology” （DLT） of data. In other word, transactions occur simultaneously between each points without the inclusion of external credit intermediary or centralized clearing institution. When transaction occur, each involved party will be equally distributed with the same transaction data and these transaction data are open to view by all involved members as well as encrypted to restrict tampering.
If Blockchain Technology is embedded within the traditional international credit business process, requested credit status and information of each party can be quickly obtained and approved through the previous validation records stored on the Blockchain.
Although the implementation of Blockchain Technology can ultimately reduce counterfeit documents through its tampering restrictions, there will always be a potential risk of fraud. For example, the data itself cannot be tampered with but is does guarantee that the initial transaction was not falsified. Therefore, the position of Internal Auditor will still have its value and significant.
In addition, when Blockchain Technology mature to a certain stage, there may issues such as the “The right to be forgotten” for information stored in the Blockchain. At that point, transaction history can be deleted despite its tampering restriction or not. This none the less will be a human challenge instead of a technical obstacles. | en_US |