FIELD OF THE INVENTION
This invention relates to the Blockchain & more particularly this invention elaborates the
cryptocurrency exchanges and financial transactions with Blockchain are the most
dominating category.
BACKGROUND OF THE INVENTION
Under the trend of global industrial integration and deep financial integration, supply chain
finance can provide business-based financing services for upstream and downstream
enterprises in the industry chain to accelerate growth. Supply chain finance comes from real
economy industrial chains. It is a supply chain-finance innovation. Supply chain management
includes it. Supply chain finance uses an industrial supply chain micro-financial model.
Financial institutions and SMEs can cut communication costs by integrating and evaluating
industrial supply chain information resources including information flow, logistics, and
business flow. Provide financial services to all supply chain participants. The supply chain
financial model has become the major way for China's small and medium-sized industries to
finance, especially as more Internet financial companies join the sector. It replaced banks as a
funding source for businesses. Although my country's supply chain financial market is doing
well, from a practical development standpoint, it has entered a bottleneck time in business
model and business innovation. SME funding limits supply chain finance.
SUMMARY OF THE INVENTION
This invention analyzes the pain points in supply chain finance, uses blockchain technology and
characteristics to change the underlying value logic of traditional financial transactions, and
transforms the value exchange in the financial market from a competitive relationship to a
collaborative development relationship. Enterprises can not only enjoy the convenience brought by
Internet technology, but also strengthen the trust foundation between them through technology, so as
to realize the optimization of resource allocation. In order to adapt to the particularity of supply
chain finance, we have also optimized the blockchain technology in three aspects, which helps to
simplify the complex business model of supply chain finance and provide a strong trust relationship
guarantee for the optimization and upgrading of supply chain finance. Use the token to dismantle the
credit of the core enterprise and pass it along the supply chain to reach the entire chain. Under the
open and transparent mechanism, the credit status of the enterprisewill always be recognized by all
subjects, and the authenticity of various documents need not be repeatedly verified. Using
blockchain technology to build a fair, objective and credible trading environment for supply chain
finance, reduce transaction friction and financial costs caused by ”distrust”

BRIEF DESCRIPTION OF THE INVENTION
One of the main reasons for the difficulty of financing for SMEs is the asymmetric information between banks and enterprises and the limitations of technological empowerment, which prevents banks from making effective judgments on the production and operation status and development prospects of enterprises, and it is difficult to effectively monitor enterprise funds. SMEs as the credit main body under the supply chain finance model, their own comprehensive strength and credit status are the factors that banks must consider when carrying out supply chain financial credit business. At present, it is a common problem that the information of SMEs in the physical supply chain is opaque and unclear to varying degrees. With the development of division of labour and international trade, the links in the physical supply chain tend to increase, and the chain structure tends to be complicated. At present, many core enterprises and first-tier suppliers/distributors in many industries have good data quality, but most other small and medium-sized enterprises in the chain are difficult to meet the data standards and quality required by financial institutions for financing. Therefore, it is difficult for the information base on the current entity supply chain to provide effective credit support data for financial institutions.
The second main reason for the difficulty of financing for SMEs is that the relationship with the core companies is too close in terms of credit status and too loose in business communication. Therefore, the supply chain financial credit with the core companies as credit conditions cannot be extended to the end of the industrial chain. When evaluating the credit status of small and medium-sized enterprises, commercial banks begin by evaluating the credit status of core enterprises. Commercial banks carry out risk mitigation through core enterprises, which provide credit support to small and medium-sized enterprises and reduce the credit risk of small and medium-sized enterprises before commercial banks grant credit to small and medium-sized enterprises. At the same time, in the supply chain financial business, the core enterprises related to SMEs play the role of payment accounts, and the credit status of the core enterprises is the key to the credit risk assessment of SMEs. In summary, although there are many factors involved in solving the problem of financing difficulties for SMEs, the following two problems are the key factors: one is to solve the problem of enterprise information symmetry and transparency, and the other is to solve the small scope of credit spread in the supply chain It cannot cover the entire chain and the financing agreement centered on the core enterprise.

Blockchain technology:
The emergence and rapid development of blockchain technology have provided strong technical support for solving the two key problems in the above-mentioned difficulties in financing for SMEs. Blockchain is a kind of data structure that combines information in a chronologically sequential manner. And the use of consensus mechanism to reach agreement to improve robustness, the use of cryptography to ensure data security, distributed ledger system, is a new application model of distributed data storage, point-to-point transmission, consensus mechanism, encryption algorithm and other computer technologies. Distributed data storage is the centralized storage of data on multiple independent devices, which improves the reliability and security of data storage. Each node uses a consensus mechanism to ensure the accuracy of the data on the chain and the consistency of the stored data. Consensus mechanism is an algorithm to achieve distributed consensus in blockchain transactions. Establishing consistent and clear rules for each node to ensure the data status of the distributed network is an important component of blockchain technology. The asymmetric encryption algorithm further improves system security and effectively validates the legality of blockchain data updates.
BLOCKCHAIN TECHNOLOGY IN THE SUPPLY CHAIN FINANCE
The blockchain proposes technological innovations for the trust and security of traditional transactions. With distributed ledger technology, multiple different nodes complete the transaction and bookkeeping process together, which serves to supervise the legitimacy of bookkeeping. The distributed storage involved in the blockchain stores the complete data of the chain structure based on timestamp in each node. Each node has the same status in the network, the same configuration resources, and through the consensus mechanism to ensure the security of stored data. The data information transmitted between each node is protected by encryption technology, which not only realizes the confidentiality of the content but also strengthens the authentication of the node. In supply chain financial activities in which multiple entities such as financial institutions, core companies, upstream and downstream companies, logistics companies, consumers, and regulatory agencies participate, coordinating the cooperative behavior among various entities, recording the trajectory of each entity’s behavior, and clarifying the various entities Responsibilities and obligations are organizational guarantees to ensure financial activities in the supply chain.
In supply chain financial activities in which multiple entities such as financial institutions, core companies, up- stream and downstream companies, logistics companies, consumers, and regulatory agencies participate, coordinating the cooperative behaviour among various entities, recording the trajectory of each entity’s behavior, and clarifying the various entities Responsibilities and obligations are organizational guarantees to ensure financial activities in the supply chain. The function of blockchain technology and the coordination characteristics of multi-agent coordination in supply chain finance are highly matched. Sara et al. found that the application of blockchain technology can break the information barriers between the core organizations of the organization, overcome many obstacles, and have a disruptive impact on the financial innovation of the supply chain. The distributed ledger technology in the blockchain technology solves the problem of the original information asymmetry, so that each unit is recorded and shared. The problems of “difficult financing and expensive financing” for low-level and medium-level SMEs in the traditional supply chain are very prominent. The decentralized result brought by the application of distributed ledger technology makes the participants, especially the original SMEs or units, more Actively participate in supply chain activities, familiarize with information and adopt corresponding strategies to better help the development of enterprises.
The consensus mechanism of the blockchain makes the agreements on the supply chain immutable and eliminates the possibility of private transactions. Any node cannot unilaterally or only privately change the protocol and manipulate data between a few subjects, even if all the subjects or effective proportions The subject (the effective pass rate set by the consensus mechanism is generally 51% or more) agrees to change the data, and the original information record will also be kept intact and record the new information, providing protection for the inspection of the original information. These technologies have created a highly trusted trading environment among the main bodies of the supply chain, and reached a high degree of mutual trust mechanism and consensus. Through the introduction of blockchain technology, all supply chain entities not only reached a full-chain mutual trust mechanism and consensus, coupled with the point-to-point information transmission brought about by decentralization, but also greatly enhanced the coordination efficiency of multiple participants in the supply chain finance. It is necessary to proceed from the overall business process of supply chain finance, optimize the design for its development pain points, truly integrate the blockchain into the development of supply chain finance, and provide assistance for the development of supply chain finance.
BLOCK CHAIN TECHNOLOGY TO OPTIMIZE SUPPLY CHAIN FINANCE
The information infrastructure provided by the blockchain effectively delivers information related to the events driving supply chain finance, and also provides a trust system and a multi-agent governance mechanism to better serve the multi-agent coordination of supply chain finance. The supply chain financial platform uses core enterprises, commercial banks or other funds, logistics companies and warehouses as the initial verification nodes of the blockchain. These enterprises are the main components of the supply chain platform. Maintaining the smooth operation of the platform is in the self-interest of the nodes. In the absence of external catastrophic events, the single node tampering with the data in the platform does not affect the smooth operation of the supply chain platform. Because the blockchain system is not suitable for storing large data files, it is necessary to study the supply chain financial platform architecture for different business packages for dif ferent business modules. Each module interacts through the data interface and communicates with the outside world. Each transaction module selects key data according to the needs of business and privacy protection, and studies differ- ent recording methods for different needs. In order to improve the visibility of supply chain finance, research and solve the problem of excessive measurement indicators in the visualization process. Based on the description of the supply chain visualization information, analyze the perspective of the supply chain visualization key measurement indica- tors and build a quantitative model of the supply chain finance visualization measurement indicators. The framework structure of the supply chain financial visualization platform analyzes the three key technical issues of data collection, data integration and data display that need to be solved to achieve supply chain financial visualization. Use historical data on the blockchain, analyze and predict according to each information update and transaction in the supply chain, and study reliable intelligent data mining and multi-dimensional information visualization methods in order to be able to establish a stable and reliable supply chain financial model. Blockchain technology enables multiple institutions to co-exist in the context of mutual cooperation and mutual supervision, avoiding the occurrence of private collusion under the traditional supply chain financial model. Under the open and transparent mechanism, the credit status of the organization will be unanimously agreed by all participants, and continuous transactions also make it unnecessary to repeatedly check the authenticity of various documents. As shown in Figure 1.
Supply chain financial operations need to generate corresponding orders, accounts receivable, invoices, accounts payable, financial pledges and other information records among multiple entities. Because supply chain finance is established between peer-to-peer entities, the information is concentrated in core companies. The information available to upstream and downstream companies and buyers and sellers is very limited. The information obtained by banks and financial institutions is limited to the degree of disclosure by core companies. Problems such as ”information is- lands” often arise. In the process of supply chain finance entities participating in value creation, all entities, especially core enterprises or commercial banks such as information-centric enterprises, need to clearly define the definition of ”responsibility, power and profit”, and disclose the responsibilities and information of each entity, so that low the upstream and downstream SMEs at the level can also obtain information. In response to the current pain points in supply chain finance, all types of assets in the supply chain including ware- house receipts, bills, contracts, etc. are digitalized into encrypted digital assets and the financial attributes of digital assets are fully derived, so that banks can be more real grasp the situation. After the asset equity is tokenized, the blockchain technology ensures that the entire circulation process is open and transparent, verifiable and traceable at any time. Based on the information flow, the logistics, cash flow and token assets are combined to systematically plan the financing business of the supply chain enterprise, judge each risk factor according to the empirical conclusion, and establish a reasonable and effective blockchain system in the supply chain. As shown in Figure 2.
Also due to the limitation of the credit endorsement ability of the core enterprises, the credit rating in the supply chain system is gradually reduced, and the electronic bills created through the blockchain technology can solve this problem. Blockchain technology can realize the distributed storage of bill assets, that is, store asset data in the blockchain, so that the relevant personnel of the asset can realize the point-to-point value transmission without the need for physical bills and centralized systems for control and verification. The core enterprises pass their credits through the layers of the blockchain, endorse the credit of downstream small and medium-sized enterprises, expand the scope of trust, and increase the financing opportunities of small and medium-sized enterprises. The reasons why blockchain bills can help enterprises at the end of the supply chain to achieve low financing costs and obtain financing services are as follows: 1. When the blockchain bill is formed, the distributed storage of the blockchain makes the newly established information data obtained the certification of all participating nodes, so the authenticity of the information in the blockchain bill can be guaranteed; 2. When the blockchain bills are passed down, because the node data of the blockchain is arranged in chronological order, each bill is time-stamped, so that the data in the blockchain bill cannot be tampered, and the credit is guaranteed during the transfer process Non-destructive. One of the important functions of blockchain technology is to solve the accuracy, transparency and security of information, and to apply blockchain technology in supply chain finance. The distributed ledger data of the blockchain is shared as a whole, linked together by cryptographic algorithms in block units, and any participant in the network can store a complete copy of the shared ledger, and the security of the data is also based on Cryptographic algorithms are guaranteed, so it becomes extremely difficult for any participant to make double payments or tamper with the ledger data.
OPTIMIZE THE BLOCKCHAIN TECHNOLOGY IN THE SUPPLY CHAIN
In order to better apply blockchain technology to supply chain finance, this invention how the blockchain function and supply chain finance closely fit together, analyze the characteristics of SME financing and optimize the blockchain for the current pain points of supply chain finance system. The data structure and storage method of the blockchain itself are not suitable for querying transaction records and mapping various assets in real time. Accessing blockchain data requires traversing all blocks, so the storage efficiency and execution efficiency of the blockchain system is very low. Obviously we cannot meet our needs, because there are many banks and enterprises in the supply chain, and transactions, contracts and bills are uploaded every moment. This not only reduces the business efficiency of the enterprise but also hinders the bank’s review of the data, delays the credit time for SMEs, prevents them from obtaining funds in time, and creates a vicious circle on the chain. The current storage optimization methods used in the research on the blockchain system mainly include three types: the use of database systems to manage block data, the use of efficient index structures to improve data access efficiency, and the use of distributed storage strategies to reduce node storage load.

We Claims:

1. At present, many core enterprises and first-tier suppliers/distributors in many industries have good data quality, but most other small and medium-sized enterprises in the chain are difficult to meet the data standards and quality required by financial institutions for financing.
2. Distributed data storage is the centralized storage of data on multiple independent devices, which improves the reliability and security of data storage.
3. It is necessary to proceed from the overall business process of supply chain finance, optimize the design for its development pain points, truly integrate the blockchain into the development of supply chain finance, and provide assistance for the development of supply chain finance.
4. The framework structure of the supply chain financial visualization platform analyzes the three key technical issues of data collection, data integration and data display that need to be solved to achieve supply chain financial visualization.
5. One of the important functions of blockchain technology is to solve the accuracy, transparency and security of information, and to apply blockchain technology in supply chain finance.
6. Blockchain technology can realize the distributed storage of bill assets, that is, store asset data in the blockchain, so that the relevant personnel of the asset can realize the point-to-point value transmission without the need for physical bills and centralized systems for control and verification.
7. One of the important functions of blockchain technology is to solve the accuracy, transparency and security of information, and to apply blockchain technology in supply chain finance.