Using Blockchain Technology to Establish a Deferred Commodity (Service) Platform with a Performance Guarantee Mechanism: Take the Supplementary Education Industry as an Example

Abstract

Deferred commodity (services) are prepaid by consumers before they get the service. In order to avoid business bankruptcy, the Executive Yuan stipulates that all businesses selling deferred commodity (services) must declare a performance guarantee mechanism in their contracts; such businesses must also pledge in the bank when they apply for bank card swiping to provide consumer installment services. In this way, businesses got to pledge two funds to legally start business and provide credit card services. We uses blockchain technology to establish a deferred commodity (service) trading platform with a performance guarantee mechanism under the premise that the industry does not need to pledge.
The solution builds an federated blockchain in the banks, and pays the fees paid by consumers through e-wallets and escrows them in the bank. After the industry provides services, the bank allocates funds to the industry in stages according to the transaction agreement. If the industry fails to perform services to consumers in accordance with the contract, the bank may terminate the allocation and return the remaining fees to the consumers. This study applies the scene of the supplementary education industry, constructs a model to technically demonstrate the operation mode of the platform, and creates a more secure and credible trading platform.