Decentralized trade finance using blockchain and lightning network

Abstract

A decentralized trade finance system is urgently needed, as smart contracts and blockchain can make the entire process fast, secure, and efficient while also allowing ordinary people to participate in the global economy. Decentralization will increase trust and transparency, as well as allow smaller businesses to participate in the industry, resulting in more jobs and a boost to the economy. We have also taken a decentralized approach to solving this massive problem with our project. We propose a decentralized trade finance model that is owned by the general public, such as you and me. On the one hand, a community of people like you and me give liquidity to the platform's liquidity pool via a lighting network, while on the other hand, importers and exporters can create profiles and engage in trade finance via the decentralized network. The exporter will use the platform validator to validate their invoice and then apply for trade finance. If everything goes well, the exporter will get monies from the liquidity pool, and the platform will be compensated by the importer after the trade is completed. Everyone involved in the process will receive trade tokens when each successful deal is completed, incentivizing the participants' good behavior.