Implementing A Letter Of Credit Style Business Process For Small-Scale Contracting Using Smart Contracts

Mathew Fukuzawa; Michael Kay; Brandon Mcconnell; Kristin Thoney-barletta; Donald Warsing

Implementing A Letter Of Credit Style Business Process For Small-Scale Contracting Using Smart Contracts

An Erratum to this article was published on July 22, 2025. https://dergipark.org.tr/en/pub/tcsa/article/1745926

Abstract

We demonstrate proof-of-concept for negotiating and executing a small-scale contracting job based on letter of credit within a blockchain network using smart contracts. Using Ethereum smart contracts, we model a small-scale general contracting scenario under perfect conditions. Execution is demonstrated with the Remix Integrated Development Environment (IDE). We show the feasibility of conducting a small-scale contracting job using smart contracts. The entire process, including job details, payment, and verification, can be conducted digitally. This research continues the efforts of previous research on letters of credit on blockchain but applies it to the general contracting scenario at small scale. Further work is required to investigate variations in the assumptions, such as dishonesty and incompetence. Also, full-scale decentralized application is not explored here. This process expands the scope of current practices and tools, such as Angi, in a decentralized manner with blockchain. Full-scale adoption at the small scale is likely difficult due to disbelief in technology, cost, and resistance to change.

Keywords

Ethical Statement

The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

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Details

Primary Language

English

Subjects

Information Systems (Other) , Networking and Communications

Journal Section

Research Article

Authors

Mathew Fukuzawa ^*
0000-0002-0001-4993
United States

Michael Kay
0000-0002-1359-8270
United States

Brandon Mcconnell
0000-0003-0091-215X
United States

Kristin Thoney-barletta This is me
0000-0002-8374-8633
United States

Donald Warsing This is me
0000-0002-1306-6477
United States

Early Pub Date

May 30, 2025

Publication Date

June 30, 2025

Submission Date

March 7, 2025

Acceptance Date

May 9, 2025

Published in Issue

Year 2025 Volume: 2 Number: 1

IZ

https://izlik.org/JA96SU74YP

Cite

RIS / Bibtex

APA

Fukuzawa, M., Kay, M., Mcconnell, B., Thoney-barletta, K., & Warsing, D. (2025). Implementing A Letter Of Credit Style Business Process For Small-Scale Contracting Using Smart Contracts. Transactions on Computer Science and Applications, 2(1), 1-18. https://izlik.org/JA96SU74YP