Abstract:

The letter of credit payment method is a financial instrument used to ensure secure payments in export and import transactions. On the other hand, blockchain technology is a database technology where transactions with a distributed and transparent structure are recorded with timestamped blocks. Thanks to blockchain technology, document and information sharing in the letter of credit process can be conducted in a more secure, transparent, and automated manner. Additionally, the utilization of smart contracts enables faster and more accurate completion of transactions. This study explores the potential application of blockchain technology in the letter of credit payment method commonly used in international trade and emphasizes the role of smart contracts. The integration of the widely used letter of credit payment method with blockchain technology is examined, highlighting the significance of digitalization in international trade. The aim of this study is to present the innovations and potential advantages that blockchain technology brings to the letter of credit payment method.

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