Block by block: A blockchain-based peer-to-peer business transaction for international trade

•Roles and capabilities of blockchain, related to international trade are identified and pertaining concepts such as smart contracts are discussed.•A novel peer-to-peer business transaction mechanism based on blockchain technology is developed and explained.•Characteristics of this mechanism are highlighted such as being trustless, third-party-less, fast, safe, secure, and transparent.•A thorough Business process modeling is conducted to demonstrate a sample business transaction based on the proposed mechanism. Heterogeneity and complicated processes, risk of information leakage, and higher costs are some of the challenges that stem from third-party involvement in business transactions. This study proposes a novel mechanism to address the shortcomings of third-party-dependent transactions in the context of international trade. Moreover, we provide business process modeling, deployed in a business transaction scenario, to furnish a deeper perspective on the working of the mechanism based on Business Process Model and Notation (BPMN) 2.0 standards and guidelines. By analyzing and identifying blockchain roles and capabilities, this study proposes a blockchain technology-based letter of credit (BTLC), which is a mechanism providing letters of credit (LCs) that incorporate the benefits of blockchain and smart contracts.