A Microservices-Based Architectural Model for Blockchain Applications in Trade Finance

Abstract

This study proposes a microservices-based architectural paradigm designed to improve blockchain-enabled trade finance systems by addressing the current limitations of trade finance, specifically its slow processing times, high operational expenses, and insufficient transparency and security. The research method applied in the paper is Design Science Research (DSR). This approach emphasizes the creation and evaluation of innovative artefacts to address identified problems. The research develops a 5-layer architectural model. This model integrates both business and infrastructure microservices, leveraging technologies such as Hyperledger Fabric, OAuth 2.0, Kafka, and Kubernetes. The study’s contribution lies in the design and implementation of an integrated architectural model, illustrated through concrete applications, which enables the comprehensive digitization of trade finance processes, including user authentication, document management, smart contract execution, payment, and supply chain tracking, among other functionalities. Beyond the technical design, the research critically examines the challenges of implementing the solution in real-world settings. It identifies potential directions for further development, including multi-blockchain interoperability, the integration of artificial intelligence for enhanced automation and fraud detection, and the adoption of central bank digital currencies (CBDCs) for secure and efficient cross-border payments.