Blockchain in international trade and finance

In the recent couple of years much of a hype on emergence of blockchain is concentrated on changing financial services area, by reduction of risks, costs or provision of new improved financial instruments. Indeed, it has an increasing impact on the financial industry (digital currency Bitcoin is the most widely-known example). However, the potential application of blockchain technology in business might go far beyond financial industry, but intervene in such areas as business, governance, society, etc. Harvard Business Review defines blockchain as following, “blockchain technology… is a vast, global distributed ledger or database running on millions of devices and open to anyone, where not just information but anything of value – money, titles, deeds, music, art, scientific discoveries, intellectual property, and even votes – can be moved and stored securely and privately”. The idea of trust underlying the technology is established by the algorithmic consensus, built in a decentralized network, but not by intermediaries like outer authority.

This project is aimed at creating a blockchain-based system to support existing finance processes in international trade. While shipping goods, monetary payments are required. Enabling these transfers to take place, and ensuring that companies are paid faster (against a backdrop of higher credit costs and corporate priorities for increased cash flow) is facilitated by financial services companies, whose mechanisms for this are commonly referred to as either supply chain finance or trade finance. Managing supply payments against invoices and related cash management can be a burden, and increases greatly in complexity when transactions are across national borders, involving correspondent banks as intermediaries. For all parties, factoring involves multiple risk factors including nonpayment, duplicate payment, misrepresentation and even fraud. And setting risk aside, processing costs related to manual due diligence, document collection and coordination of remittances are high.read more.

This Master Project gives a chance to get into the highly dynamic and emerging field of digital innovations and embraces business and technical aspects of the blockchain technology. 

For this project, we are looking for:

• Highly motivated students with a strong interest for blockchain technology, obtaining a Master degree.
• Students should have a confident knowledge in informatics (prototyping, software engineering) and business informatics (e.g., information management, project management, requirements engineering). Basic knowledge of innovation management as well as prior software development would be an advantage.
• Creativity and ability to work in team are highly appreciated.
• The project should start either in February 2017 or in the beginning of the summer 2017.
• If you decide for this project, you have 2 options.
  • Option 1. The project lasts 6 months. You work with the group face-to-face at least 2 days per week, ½ day flexible.
  • Option 2. The project lasts 3 months. You work with the group face-to-face at least 4 days per week, 1 day flexible.

If you are interested in the topic and think you are the right person to get involved, contact us:

Prof. Dr. Gerhard Schwabe

Liudmila Zavolokina