Supply Chain Finance and Blockchain Technology

Digital supply chain finance is a financial innovation product of the combination of blockchain technology and traditional supply chain finance. This paper constructs the theoretical framework of enterprise mortgage financing from banks in the supply chain network, and analyzes the economic operation principle of digital supply chain finance and its advantages and disadvantages compared with traditional supply chain finance. In order to prevent ethical risks like enterprise information manipulation and malicious fraud, the study found that when the quantity and quality of information on the supply chain reach certain levels, the enterprise-related information revealed by the blockchain's consensus mechanism will be close to the actual information. This will allow banks to offer sufficient accessibility for supply chain businesses and enough affordable financing options. Banks, on the other hand, are better suited to avoid and control risks through conventional offline due diligence when the number of chain firms is few or the quality of chain information cannot be assured. Theoretically, this paper shows that digital supply chain finance based on blockchain technology will become a more effective and inclusive financial support method in the future with the popularization of blockchain technology in the supply chain and the improvement of enterprise digitization level.