Application Of Blockchain Technology In Warehouse Receipt Pledge Financing

The occurrence of pledge finance for warehouse receipts provides a good funding channel for small and medium-sized businesses in the industrial supply chain.By integrating information,capital,logistics and other resources,the company in the supply chain can be well supported.The warehouse receipt pledge service has created a good external environment for the continuous and stable development of companies,financial institutions and third-party logistics and warehouse companies,as well as win-win cooperation,and provided valuable liquidity for small and medium-sized businesses.However,the offline process of funding warehouse receipts requires multiple parties to work together.The flow of information and capital between warehouse operators,small and medium-sized enterprises and banks is complicated,which increases the possibility of errors.Although the existing risk prevention mechanism for the pledge financing of warehouse receipts has played some role,there are still problems such as long time consuming business processes,high borrowing costs,easy forgery of warehouse receipts and repeated pledges.This article first analyzes the financing difficulties of SMEs,the status quo of supply chain financing,blockchain technology and the actual cases of warehouse receipt financing.It is noted that while SMEs have capital needs,the credit produced by their own long-term activities cannot be used as a source of funding.Therefore,combined with the traditional financing model for pledging warehouse receipts,the valuable assets are used as the basis for developing financing for warehouse receipts pledging.For the problems of the traditional pledging business includes warehouse receipts fraud,repeated pledges,pledges monitoring and the long time and cost of the loan process,I propose a new financing model for pledging warehouse receipts based on blockchain technology.The blockchain technology for distributed ledgers in this model can be universal to different organizations,making it easy to expand and grow the organization,and ultimately establish a universal and unique platform system for the whole industry to support the different companies of the participating companies.Companies in the blockchain distributed ledger have the same accounting powers and the authority to share them with the general ledger downloads,thereby achieving decentralization.Transactional information between companies can be fully shared and tracked,and the transaction process is transparent.After the warehouse company verifies the cargo information,it uses blockchain technology to issue a smart warehouse receipt and upload the warehouse receipt to the warehouse receipt pledge financing platform to avoid warehouse receipt fraud and other issues.Having a solid financing system will further reduce the possibility of bank losses,thereby significantly lowering the interest rates and fees banks lend to companies.With the help of blockchain technology,the bank expanded the scope of the service group while reducing credit risk,further increasing the number of loans and further increasing profits.Using actual market cases,it analyzed the feasibility of this new model for the pledging of warehouse receipts and the controllable characteristics of credit risk and found that this model not only enriches traditional supply chain financing,but also helps revitalize the assets of small and medium-sized enterprises.