Recently, DALICHAIN conducted an academic conversation on blockchain applications in supply chain finance with Professor Min Jung Ung (Inha University, Korea) in Seoul.
Prof. Min graduated from Stanford University with a Ph.D. in Logistics and is Inha University Business School professor. He is an authoritative expert in the Korean logistics & supply chain industry.
During the discussion, Prof. Min mentioned that the current supply chain ecosystem is more dependent on core enterprises to contribute credits or relying on guaranteed mortgages to obtain financial support. Data in the credit ecosystem are independent and un-trustable, easy to be tampered with and difficult to be tracked. So when fraudulent behaviors happen, it’s difficult for relevant regulators to use above data for due diligence and punishment.
Prof. Min said: IBM’s TradeLens project only uses blockchain to display logistics information, and DALICHAIN’s solution is relatively more efficient. Prof. Min prepares to test Manager Kim’s freight project. And they would combine it with blockchain in order to expand supply chain finance’s scale. However, they have not found an applicable blockchain business model before, and DALICHAIN’s supply chain finance solutions could positively be a successful case in this industry.
Livio (Founder, DALICHAIN) said: Blockchain can extend the subject credit to data credit. Credit rating is based on credit data, which are the accumulation of data and related qualifications on blockchain. Recorded data help to prove trusted and transparent businesses. The financial institutions can issue loans for each business transaction based on credit rating of data while meeting the corresponding risk control standards. In addition, blockchain’s unique advantages can achieve ecosystem’s sharing model innovation.
DALICHAIN introduced “supply chain finance + blockchain” successful cases in China and other implemented cases in areas like: trust, manufacturing, chemical supply chain, car-free carrier, vaccine process, public welfare and etc. DALICHAIN will continue to work with Prof. Min on how to implement the blockchain solution in Korean industry.