Eximchain partnering with Engima on using secret smart contract for Supply Chain Finance
In 2017, the Asian Development Bank estimated that there’s a $1.5 trillion global trade finance gap per year. It is also discovered that 74% of this gap comes from small-and-medium-sized enterprises (SMEs). In China alone, there are 40 million SMEs that struggle with financing. For example, an exporter with around $1million trade in textiles or jewelry doesn’t have much negotiating power. As a result, they are forced to accept unfavorable payment terms. Big companies can demand 60–90 day payment terms, which can put small suppliers in risk of bankruptcy and the supply chain in risk of disruption.
Eximchain is partnering with Enigma to enable a novel supply chain finance use case by leveraging Enigma’s secret smart contract technology. We are creating a decentralized way for borrowers to secure the best rates given their credit profile, and simultaneously allows them to maintain ownership and privacy over their data throughout. Companies in the global supply chain will be able to leverage on-chain behavior as proof of business history to underwriters, helping to address the global trade finance gap, especially for SMEs.
How does it work?
Alice is a small business owner that creates handcrafted jewelry at her factory in China. She has kept her past transactions and records on Eximchain blockchain and is looking for access to cheaper financing. Using a private smart contract through the Eximchain Platform, Alice will be able to request a quote from available lenders on Eximchain Platform. Alice is able to hide her sensitive information behind the Enigma Secret Smart Contract from the rest of the network and lenders can still give a lending quote based on critical information — such as credit profile — verified by Data Providers on Eximchain Platform, or on past supply chain transactions recorded on Eximchain Blockchain. The lending quote gathering process happens on blockchain with all the verification done on a globally distributed network. This occurs without revealing any sensitive information or identity information to lenders before the lending rate is accepted.
Why is it exciting?
This decentralized lending use case was not possible 6 months ago because of the privacy issues inherent to public blockchain. Through Enigma’s secret smart contract, the computation happening in SGX makes the use case timely and applicable for the real-world environment. With Eximchain’s Mainnet launching soon, leveraging secret smart contracts emphasizes Eximchain’s focus on becoming the first privacy focused, publicly available and enterprise-ready blockchain ecosystem.
What does it mean for the Eximchain Blockchain ecosystem?
Eximchain Blockchain ecosystem welcomes buyers, suppliers, financiers, and supply chain data providers to build customized, end-to-end, supply chain applications with data privacy. Our goal is to enable businesses in global supply chain to connect, transact, and share information more efficiently and securely through our blockchain utility infrastructure. Through the partnership with Enigma, ecosystem participants on Eximchain Blockchain will have the ability to build use cases and business logic based on past supply chain of transaction records stored on Eximchain Blockchain with Enigma’s secret smart contract without worrying about the privacy issue inherent to public blockchain.
How will Eximchain interact with Enigma Secret Smart Contract?
You can get more details about the interaction and design from below sequence diagram:
Who else are piloting Enigma Secret Smart Contract?
Eximchain is one of the eight forward-thinking projects collaborating with Enigma and using secret contracts to create ecosystem of solutions for a decentralized future.
Read more details here:
About Eximchain
Eximchain enables businesses to connect, transact, and share information more efficiently and securely through our blockchain utility infrastructure. Using Eximchain blockchain technology, enterprises can eliminate traditional supply chain barriers and integrates actors big and small into an efficient, transparent, and secure global network.
