JED’s Blockchain Proof-of-Concept (POC)
As part of JED’s R&D and technology roadmap, we have built an early-stage blockchain POC I to establish:
Immutable audit trail to keep accurate records of trade and finance interactions
Traceable invoice milestones retrievable for data verification
Invoice status verification by partner lenders added as validating nodes to a distributed ledger network
This POC I aims to demonstrate our thought process in how a blockchain system can be designed for an invoice-based proposition to achieve the abovementioned outcomes, and how data can still be segregated and private on a “shared” platform from the user point of view (e.g. for companies).
One of JEDTrade’s value proposition is enabling trade partners to negotiate better payment terms with each other to achieve mutually beneficial outcomes. Establishing new payment terms involves the modification of existing agreements and paralleling this, blockchain is a solution that allows these changes to be recorded and stored in ways that guarantee non-repudiation. New contracts can also be validated upon cryptographic signing by all interested parties.
Blockchain allows trusted participants to access and see what is being written onto the common ledger and on this basis of transparency, allows better efficiency in achieving consensus. Even if existing entries were to be modified with malicious intent, it cannot be done by neither existing nor third-party users. With blockchain, the concept of ‘trustlessness’ is achieved as companies do not have to trust us to work with us.
Technical Construct and White Paper
Hyperledger Fabric v0.6 is used for this POC I. Fabric is a permissioned blockchain framework that has a modular structure – invoice details are encrypted and hashed using a predefined sequence, and stored in the Fabric database as key-values pair for retrieval later. Click our White Paper below for a detailed description.
About the Blockchain Demo
Logging in as a Supplier
As a supplier, you can query and generate full details and lifecycle of an invoice by inputting the following fields: Invoice Ref, Invoice Date, Currency, Amount
The chaincode has imposed the restriction that suppliers are only able to query and view invoices that belong to them.
Use case: Where blockchain provides an immutable audit trail to register trade and finance interactions, users can trace and confirm invoice milestones in the event of a dispute resolution where one party denies a particular action was made or an actual event had happened.
Logging in as a Lender
As a Lender, you can query the invoice status by inputting the following invoice fields: Invoice Ref, Invoice Date, Currency, Amount
The chaincode has imposed the restriction that lenders can only query the latest status of an invoice and where relevant fields can be selectively disclosed to lender, if consented by the title-holder.
Use case: Invoice status verification allows lenders to check against double-financing and leverage risks for invoices that flow through the system.