Modernizing Letter of Credit with Blockchain Technology in Oman

Abstract

In the Commercial Transactions Act, the letter of credit is a primary requisite as it is intended to ensure successful business transactions between sellers and buyers. Basically, the buyer undertakes to pay the seller immediately upon receipt of the goods or services, and the seller accepts the promise because the letter of credit by issued-bank guarantees the payment. This process is considered as a problem where the costs and time required to process paper documents to complete transactions have a negative impact on the parties. Our system will be the solution to this problem as we rely on Bblockchain technology, a new way of organizing the data and dealing with it, where the commercial transactions are processed in an electronic system that is built primarily on decentralized distribution. This allows all parties to track information over a secure network and does not require a third party.