Many companies struggle to gain access to the capital that helps them sustain operations. One way to get funding is to use invoice discounting. Invoice discounting is a funding option provided to companies that are issued by finance companies or individual investors. It is a great way to get instant cash via unpaid invoices which can later be used to increase business growth. The traditional invoice discounting is built upon a centralized system architecture which are commonly costly and considered a solitary point of weakness. This system has several risks of cyber-attacks such as personal data breaches and data modification which makes them untrustworthy and unreliable. Moreover, a centralized system has a low transparency may causing some problems like invoice traceability. Other risk of this system is double financing. It happens when the company sells the same invoice to more than one investor. When the invoice is due, the company will just pay one investor, leaving the other unpaid. In addition, this system is also at risk of late payments.
In order to solve this issue, we present a secure design invoice discounting using blockchain technology. Blockchain technology is used to ensures transparency, immutability, and trustworthiness. In addition, the proposed model used elliptic curve cryptosystem to encrypt, signature, and verify invoice so that ensure the integrity and confidentiality of data. Moreover, we utilize cryptocurrency to make a straightforward and secure transaction when transfer money with virtually zero down time. Hereafter, we propose Bayesian reputation system to collect and evaluate the quality of payments made by companies thereby reducing the risk of late payments. This proposed model ensures transparency and information security of blockchain on financial technology, and also avoid unwanted risks.
A prototype is implemented to show the feasibility of the proposed model. Furthermore, the security strength of the proposed model and the performance of the prototype are evaluated in this study. Based on experiment result, the proposed blockchain-based invoice discounting system can be used to provides the following characteristics: prevent from double financing, effortless invoice tracing, protection against cyber-attacks such as personal data breach, and protection toward sensitive information from unauthorized user.

Many companies struggle to gain access to the capital that helps them sustain operations. One way to get funding is to use invoice discounting. Invoice discounting is a funding option provided to companies that are issued by finance companies or individual investors. It is a great way to get instant cash via unpaid invoices which can later be used to increase business growth. The traditional invoice discounting is built upon a centralized system architecture which are commonly costly and considered a solitary point of weakness. This system has several risks of cyber-attacks such as personal data breaches and data modification which makes them untrustworthy and unreliable. Moreover, a centralized system has a low transparency may causing some problems like invoice traceability. Other risk of this system is double financing. It happens when the company sells the same invoice to more than one investor. When the invoice is due, the company will just pay one investor, leaving the other unpaid. In addition, this system is also at risk of late payments.
In order to solve this issue, we present a secure design invoice discounting using blockchain technology. Blockchain technology is used to ensures transparency, immutability, and trustworthiness. In addition, the proposed model used elliptic curve cryptosystem to encrypt, signature, and verify invoice so that ensure the integrity and confidentiality of data. Moreover, we utilize cryptocurrency to make a straightforward and secure transaction when transfer money with virtually zero down time. Hereafter, we propose Bayesian reputation system to collect and evaluate the quality of payments made by companies thereby reducing the risk of late payments. This proposed model ensures transparency and information security of blockchain on financial technology, and also avoid unwanted risks.
A prototype is implemented to show the feasibility of the proposed model. Furthermore, the security strength of the proposed model and the performance of the prototype are evaluated in this study. Based on experiment result, the proposed blockchain-based invoice discounting system can be used to provides the following characteristics: prevent from double financing, effortless invoice tracing, protection against cyber-attacks such as personal data breach, and protection toward sensitive information from unauthorized user.

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