Financing Facilities Supported by Smart Contracts
After the smart contract is completed and the buyers and sellers finish the negotiation after the SilkChain matchmaking,the digital contract can be signed through the smart contract.
Apart from including buyers and sellers,the digital contract defines third parties involved such as supervision departments,authorities,law enforcement agencies,arbitration bodies and evaluation institutions.
The third party may confirm the triggering conditions in the contract,thus starting the function of the smart contract.
To prove his or her holding of the digital documents(e.g.texts,images,audio,and videos),the party can store the relevant documents in the Blockchain system which provides privacy protection and distributed data storage.
It refers to the service of contracting digital contracts for a limited number of parties through a certain procedure.The entire procedure is accessible for all participants on the chain,thus preventing illegal modification and disavowal.
After certificates are stored,data transactions can be done through encrypting and exchanging peer-to-peer data.Such transactions ensure that data can be decrypted only by the authorized parties involved in the exchange and query.
The exchange or query of certificate data
Trade Financing Supported by Smart Contracts
The buyer or seller can apply for relevant trade financing based on the smart trading contract of both buyers and sellers.Different financial institutions will provide templates for each product to choose from.
Trade financing products available to
buyers and sellers
Smart letter credit Silk LC
Warehouse receipt pledge
The process of opening the smart letter credit on the SilkChain–Silk LC
The importer applies for the letter of credit(L/C)and the loan under L/C based on the smart trade contract.
The financial institution determines the background of trade financing according to the smart trade contract,opens the letter of credit based on the importer's credit situation or the second repayment source,and inform the exporter and the logistics company that the smart contract comes into effect.
The loan under the L/C of the importer is locked by the smart contract in the form of Silk Dollar.
The logistics company provides the logistics information uplink and proves that the packing triggers the conditions of the smart contract.
According to the terms of the smart contract,after the artificial judgement(if any),the money will be refunded to the exporter's wallet address in the form of Silk Dollar,and the bill of lading will be locked.
The importer will repay the loan and the money will enter the wallet address of the financial institution in the form of Silk Dollar.The smart contract will automatically lock the bill of lading and give it to the importer.
The importer will pick up the goods by the bill of lading.