| dc.description.abstract | In this study, the use of blockchain in the letter of credit payment method was conceptually examined using academic literature and internet resources. In order to carry out this examination, the letter of credit payment method was first mentioned. In this section, besides the strengths of the letter of credit payment method, the weak points are also mentioned. The letter of credit payment method gives confidence to international trade parties located in different countries. The commercial contract with the letter of credit payment method is mostly successful. However, the weakest point of this payment method is that the transactions are very slow. There are intensive exchanges of documents between commercial parties. However, the presence of more than one intermediary bank is among the biggest reasons for this slowdown in transactions. The slow structure in the traditional letter of credit method and the presence of more intermediary banks cause their costs to be quite high. Although traditional letter of credit is a relatively reliable payment method compared to other traditional payment methods, it cannot fully protect against bad actions such as fraud and forgery. In the second part of this study, blockchain technology is mentioned. Blockchain technology is defined as a digital data registry in a decentralized distributed structure. It is possible to mention that this technology is an information and communication technology just like the internet. Blockchain technology has the ability to make smart contracts. With smart contracts, transactions and agreements between parties are allowed to be made reliably without the need for a central authority or a legal system. Since there is no intermediary institution in such contracts, transactions are carried out quickly and at low cost. In addition to all these, blockchain technology provides transparency, immutability and auditability to transactions. Blockchain technology, which provides business process efficiency and productivity, offers users high quality and flawless data, higher efficiency, less cost, lower risk, more trust and better privacy. Along with all these advantages, this technology is used in many areas from notary publics to supply chain management. In the third part of our study, studies in the literature about the use of blockchain technology in letter of credit payment method were examined. There are not many studies on the subject in the literature. The studies either included few case studies or remained conceptual. However, the findings of the studies show great importance. While blockchain technology simplifies letter of credit transactions, it is also seen as very successful in mediation. In addition, this technology provides transparent and comprehensive information and prevents fraudulent activities to a large extent. However, it is more difficult to increase the application of this technology due to reasons such as not being able to provide full confidence of people yet, its technical limitations and not being able to fully adapt to the laws of the country. The higher the number of users adopting the technology, the higher the percentage of using it in the letter of credit payment method. In the fourth and last part of our study, it is mentioned how the blockchain technology will be applied to the letter of credit payment method. However, in this section, the advantages that blockchain technology adds to the letter of credit payment method are also mentioned. Blockchain technology helps mitigate the fraud risk associated with document processes in the letter of credit payment method and reduces the cost of the transaction. In addition, blockchain technology makes the L/C payment method more efficient, reliable and easy for commercial parties. Thus, it increases the reputation of the letter of credit payment method. It eliminates the need for correspondent banks in letter of credit transactions. The automation feature it provides to the active payment method using blockchain technology, provides faster guaranteed payments by preventing disputes arising from contract uncertainties. Inconsistencies in letters of credit are discovered early and payment delays are reduced. Thus, it eliminates the expense and difficulty of making changes due to inconsistencies. Blockchain technology makes the procedure faster and easier for the parties of the letter of credit by eliminating the need to present documents physically. Implementing blockchain can help complete all letter of credit transactions in just one day. It also ensures that all parties can see the process and check the documents submitted by the seller. | tr_TR |
