trade-finance-cordapp-outline.md

Trade Finance Cordapp Outline

Seller SME -> S // Buyer SME -> B // Seller Bank -> SB // Buyer Bank -> BB

Assumptions

• simplify dlt as much as possible. time is better spent on frontend as per Rashi.
• since we're using api calls & security is out of scope, do we need / want authentication on who can update? how?
• exact status terms are not finalized!
• two flows (proposeTradeTxFlow & updateTradeTxFlow) keeps it simple.
• move bank identities to model?

Proposal (via proposeTradeTxFlow)

• S creates a tradeTx proposal
• API request -> {purchase_order_id, seller_id, buyer_id, tx_amount, delivery_date, seller_bank_name, buyer_bank_name}
• API response -> {boolean}

Created on DLT

• tradeTx Model (immutable throughout tradeTx lifecycle (enforced via contract)) { purchase_order_id: Int, seller_id: Int, buyer_id: Int, tx_amount: Int, delivery_date: Date }
• tradeTx Output State { tradeTx: Model, sellerBank: Party, buyerBank: Party, status: pendingBuyerApproval, contract: TradeTxContract, actionDate: Date, (records the day this state was created, can be used to look up all dates when tradeTx was updated) linearId: UniqueIdentifier }

Buyer Decision

via updateTradeTxFlow & buyerApproval command

• If B doesn't agree to terms -> updates tradeTx status to Rejected (via updateTradeTxFlow & Reject command)
• If B agrees this is a valid tradeTx . . .
• Consumes pendingBuyerApproval state
• Creates new state
  • same: tradeTx, sellerBank, buyerBank, contract, linearId
  • status -> pendingBbApproval, actionDate -> today

Buyer Bank Decision

via updateTradeTxFlow & buyerBankApproval command

• If BB doesn't agree to terms -> updates tradeTx status to Rejected (via updateTradeTxFlow & Reject command)
• If BB aggrees this is a valid tradeTx . . .
• Consumes pendingBbApproval state
• Creates new state
  • same: tradeTx, sellerBank, buyerBank, contract, linearId
  • status -> pendingSbApproval, actionDate -> today

Seller Bank Decision

via updateTradeTxFlow & sellerBankApproval command

• If SB doesn't agree to terms -> updates tradeTx status to Rejected (via updateTradeTxFlow & Reject command)

• If SB aggrees this is a valid tradeTx . . .

• Consumes pendingSbApproval state

• Creates new state

  • same: tradeTx, sellerBank, buyerBank, contract, linearId
  • status -> Approved, actionDate -> today

• At this point, we have 4 parties consensus on an immutable state - tradeTx is a go. tradeTx can no longer be rejected

Approved -> Ready

via updateTradeTxFlow & Ready command

• API request {/tradeTxId/ready}
• API response {boolean}
• Consumes Approved state
• Creates new state
  • same: tradeTx, sellerBank, buyerBank, contract, linearId
  • status -> Ready, actionDate -> today

Ready -> Shipped

via updateTradeTxFlow & Shipped command

• API request {/tradeTxId/shipped}
• API response {boolean}
• Consumes Ready state
• Creates new state
  • same: tradeTx, sellerBank, buyerBank, contract, linearId
  • status -> Shipped, actionDate -> today

Shipped -> Received

via updateTradeTxFlow & Received command

• API request {/tradeTxId/ready}
• API response {boolean}
• Consumes Shipped state
• Creates new state
  • same: tradeTx, sellerBank, buyerBank, contract, linearId
  • status -> Received, actionDate -> today

Received -> PaymentSent

via updateTradeTxFlow & PaymentSent command

• API request {/tradeTxId/ready}
• API response {boolean}
• Consumes Received state
• Creates new state
  • same: tradeTx, sellerBank, buyerBank, contract, linearId
  • status -> PaymentSent, actionDate -> today

PaymentSent -> Complete

via updateTradeTxFlow & Complete command

• API request {/tradeTxId/ready}
• API response {boolean}
• Consumes PaymentSent state
• Creates new state
  • same: tradeTx, sellerBank, buyerBank, contract, linearId
  • status -> Complete, actionDate -> today

Other API Endpoints

TradeTx Current State

• GET {/tradeTxId/current}
• API response -> returns current tradeTxState for a tradeTx

TradeTx Transaction History

• GET {/tradeTxId/history}
• API response -> returns history of tradeTxStates for a tradeTx

All Current TradeTx's for a Bank ??

• GET {/bankName/getBankTrades}

All Current TradeTx's for an SME ??

• GET {/smeId/getSmeTrades}