An intelligent cross-border transaction system based on consortium blockchain: A case study in Shenzhen, China

Area of Science:

• Financial Technology
• Distributed Ledger Technology
• Blockchain Applications

Background:

• Cross-border transactions face significant risks due to regulatory differences and uneven bank profits.
• Existing systems struggle to efficiently manage and fairly distribute profits in international trade.

Purpose of the Study:

• To propose a novel consortium blockchain system, Asymmetric Consortium Blockchain (ACB), for secure and efficient cross-border transactions.
• To enhance profit allocation fairness and reduce opportunity loss for participants in international financial networks.

Main Methods:

• Development of a new consortium blockchain architecture (ACB) with supernode regulation capabilities.
• Design of a novel smart contract to optimize profit distribution and minimize participant losses.
• Numerical experiments simulating Shenzhen-Hong Kong cross-border transactions.

Main Results:

• The ACB system demonstrates efficiency in managing cross-border transactions.
• The proposed system achieves fairer profit allocation among participants.
• The ACB framework enhances the intelligence and regulatory oversight of the transaction system.

Conclusions:

• The Asymmetric Consortium Blockchain (ACB) offers a viable solution to mitigate risks in cross-border transactions.
• ACB promotes equitable profit distribution and improved efficiency in international trade finance.
• The system provides a robust and intelligent framework for future cross-border financial operations.