In today’s society with highly competitive business, no
matter which company or seller is concerned, partners
are afraid of digging into each other’s corners. The
current freight forwarding operation system focuses on
freight calculation, customs declaration and shortest path
optimization. Especially when it comes to commercial
activities between import and export trade, the consid-
erations are more complicated; whether it is a freight
forwarding company at home and abroad, it is most
afraid of partners to dig each other’s corners. Therefore,
how to prevent these situations from happening is a
difficult problem for everyone. This research intends
to use Partial Information in the theory of Knowledge
Management to try to deal with and solve corner-
cutting incidents. Corresponding research at home and
abroad is currently at the initial stage, and there are
very few similar subjects. At the same time, our team
proposed this system in the context of research. It will
improve trade security and enhance the feasibility of
transactions between the two parties, thereby promoting
the development of cross-border e-commerce. As an
emerging foreign trade model, cross-border e-commerce
is booming. This foreign trade model has shortened the
distance between products from manufacturers to foreign
consumers, and has reshaped the value chain of foreign
trade. However, because buyers and sellers use virtual-
ization Negotiations and consultations on the platform
may also involve the participation of freight forwarders
and the services of shipping companies, which increases
the uncertainty of the transaction process and results.
How to efficiently and confidentially transfer information
to each other is the main idea and goal of this project.
The main highlight and contribution of this research is
that the integrated cross-border e-commerce information
leakage prevention system of this program can be used
as a part of the management information system (MIS,
Management Information System) system of the cross-
border e-commerce platform. This system is proposed
optimize the information security of both parties to the
transaction, thereby improving the security of cross-
border e-commerce transactions, protecting the rights
and interests of buyers and sellers, and freight forwarders
can trade safely. Therefore, this scheme has a high degree
of commercial value and can be practically applied in
commercial trade. With the construction of China’s “One
Belt One Road’ policies and the increase of import and
export trade, I am more convinced of the research value
of this research.
In 2007, Zhang et al. [1] used the game theory method
to explore the process of freight information exchange
network promotion. Wei [2] mentioned the formulation
of port of loading and unloading in the bill of lading in
2008. In the same year, Deng and Zhang [3] proposed
A Novel Integrated Freight Forwarding Information System Based on
Block-Chain Technology
1CHENGLIAN LIU, 2SONIA C-I CHEN
1School of Computing, Neusoft Institute of Guangdong, Foshan 528225, CHINA
2School of Economics, Qingdao University, Qingdao 266061, CHINA
Abstract: As an emerging foreign trade model, crossborder E-commerce is booming. This foreign trade model
shortens the distance between products from manufacturers to foreign consumers and reshapes the value chain of
foreign trade. However, because buyers and sellers use virtualization. Negotiations and consultations on the
platform may also involve the participation of freight forwarders and the services of shipping companies, which
increases the uncertainty of the transaction process and results. How to efficiently and confidentially transfer
information to each other is the main idea and goal of this paper. Foreign buyers, domestic sellers, shipping
companies, and freight forwarding companies are independent entities. Due to common transaction events, the
interaction between the four parties has been promoted. However, independent information systems cannot
exchange information (or content) with other entities. Based on this point, our goal has formulated an integrated
freight forwarding program.
Keywords: ElGamal Algorithm, Anonymity, Double- Blind Mechanism
Received: April 28, 2021. Revised: July 18, 2022. Accepted: August 14, 2022. Published: September 14, 2022.
1. Introduction
2. Literature Review
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the design of electronic customer relationship manage-
ment system for freight forwarding industry. Yang and
Luo [4] also proposed a management information system
for freight forwarding business of small enterprises;
Zheng [5] mentioned that computerization is an im-
portant way for China’s international freight forwarders
to improve their competitiveness. Hu et al. [6] studied
the integration of supply chain information resources to
promote the development of freight forwarding industry.
The application of blockchain technology in supply chain
management literatures such as Jabbari and Kaminsk [7],
and Jabbar et al. [8]. The application of blockchain
technology in logistics includes Issaouia et al. [9], Tijan
et al. [10], Irannezhad [11], and Koh et al. [12]. The
related research of freight agency in other aspects are
listed in Table 1.
Table 1
RELATED LITERATURES
Year SCM CRM Logistics Others
2007 Zhang et al. [1]
2008 Wei [2]
2008 Deng & Zhang [3]
2009 Yang & Luo [4]
2010 Zheng & Xu [5]
2010 Poon & Choy [13]
2015 Hu & Liu [6]
2016 Huang [14]
2017 Hopkins [15]
2018 Jabbari & Kaminsky [7]
2019 Issaouia et al. [9]
2019 Tijan et al. [10]
2019 Irannezhad [11]
2019 Hackius et al. [16]
2019 Elbert & Gleser [17]
2020 Tsiulin et al. [18]
2020 Jabbar et al. [8]
2020 Koh et al. [12]
2021 Tan & Sundarakani [19]
This article extends the concept of information se-
curity technology and management, and specifically in-
troduces cryptography and information security mecha-
nisms into the securities regulatory system review sys-
tem, combined with the ElGamal algorithm, to meet
the requirements of the securities regulatory process.
In the process of submitting materials, the supervisory
system can set to know or not know the identity of
the investor (double-blind mechanism). Based on this
design concept, the handler passively knows or does
not know the identity of the investor. This article is
a conditional anonymity plan. During the submission
process, investors and brokers have registered and issued
accounts and order confirmations, and investors, brokers,
and regulators are anonymous to each other. The system
processes the investor has no direct dealings with the
stock exchange, stock exchange can not know the true
identity of the investor; the Commission is entitled to the
role of supervision and inspection of the contents of in-
vestor transactions, and exchanges of information inquiry
; and SEC The securities firm is responsible for reporting
the business to the Securities Regulatory Commission;
the securities dealers need transaction returns to the
Stock Exchange. The core of this algorithm has 8 stages,
namely: registration stage, account issuance stage, order
placement stage, order confirmation stage, transaction
return stage, report business stage, data inquiry and
supervision and inspection stage. The detailed process
of each stage is as follows description:
Step 1. The purchaser orders something by merchant.
Step 2. The merchant receives an order, he then autho-
rizes the freight forwarder to process Shipments.
Step 3. The freight forwarder books compartment with
shipping company (may be airline).
Step 4. The shipping company sends back the bill of
lading to the freight forwarder. 5
Step 5. The freight forwarder sends back the bill of
lading information to the merchant.
Step 6. The merchant provides shipping information to
the purchaser.
Step 7. The shipping company informs the purchaser to
pick up the cargoes.
Step 8. Purchaser pick up his cargoes.
Step 9. The shipping company informs the freight for-
warder of the delivery result.
Notation and Significant:
p: is a prime number, usually more than 1024 bits
length.
g: is the primitive root of prime number p.
xi: is a private key in ElGamal like algorithm.
yi: is a public key in ElGamal like algorithm.
m: digitized message.
Purchaser: mean to foreign buyer, we usually use
‘purchaser’ instead of buyer in this paper.
Merchant: mean to domestic seller, we usually use
‘merchant’ in this article.
Freight Forwarder: is sometimes called cargo agent.
Shipping Company: express the transportation company
such as railway, shipping or airline. It depends on the
contract content of the transaction.
3.1 In the system initialization phase, all users such as
purchaser, merchant, freight forwarders and the shipping
company set their own account numbers and passwords,
and share primitive parameters gand a large prime
numbers pthrough the system.
The merchant randomly selects a number xa, as its
3. Our Research Methodology
3.1. System Initialization Phase
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Puchaser
Merchant Freight Shipping
Company
Forwarder
1. Ordering
2.Authorizing 3. Booking
4. Replying
5. Responding
6. Reporting
7. Announcing
8. Getting
9. Checking
Figure 1. The Idea of Conception.
private key and satisfies gcd(xa, p 1), then calculates
his public key
yagxa(mod p)(1)
The freight forwarder (or agent) randomly selects its own
private key xbto calculates its own public key yb, and
then announces
ybgxb(mod p)(2)
The purchaser randomly selects its own private key xc
to calculates its own public key yc, and publishes it
ycgxc(mod p)(3)
Shipping company will randomly select its own private
key xdto calculate his public key yd, and then publishes
ydgxd(mod p).(4)
Please see Figure 2.
Merchant Freight Forwarder Purchaser Shipping Company
Compute:
yagxamod pybgxbmod pydgxdmod p
ycgxcmod p
Figure 2. The System Initializing Phase.
3.2 The purchaser uses his private key xc, nonce key
kcand merchant’s public key yato produce an order Sc
where
Scyxc
a·rkc
amod p. (5)
and sends these two parameters {Sc, rc}to the merchant,
see Figure 3.
Puchaser Merchant
1. {Sc, rc}
rcgkc(mod p)
Scyxc
a·rkc
a(mod p)
Figure 3. The Ordering Phase.
3.3 When the merchant receives {Sc, rc}from pur-
chaser, he then authorizes the freight forwarder to dele-
gate shipments, see Equation 6 and Figure 4.
Wcsc·rka
c·yrc
bmod p. (6)
And sends {Wc, rc}to freight forwarder, see Figure 4.
Merchant Freight Forwarder
2. {Wc, rc}
WcSc·rka
c·yrc
bmod p
Figure 4. The Authorizing Phase.
3.4 The freight forwarder obtains a valid delegation
and after books some cabins according to the contract
information by shipping company, see Equation 7 and
Figure 5.
Tc(wc)xb·yrcxb
bmod p, (7)
see Figure 5.
Freight Forwarder Shipping Company
3. {Tc, rc}
Tc(Wc)xb·yrc·xb
bmod p
Figure 5. The Booking Phase.
3.5 The shipping company uses his private key xdto
sign the bill of lading before he returned {Vc, rd}to
freight forwarder, see Equation 8 and Figure 6.
Vc(tc)xdmod p. (8)
Shipping Company
Freight Forwarder
4. {Vc, rd}Vc(Tc)xdmod p
Figure 6. The Replying Phase.
3.6 Freight forwarder received a valid bill of lading
from shipping company, freight forwarder uses his pri-
vate key x1
bto endorse it, and then forward partially
information to merchant, see Equation (9) and Figure 7.
zc(vc)x1
bmod p. (9)
3.2. Ordering Phase
3.3. Authorizing Phase
3.4. Booking Phase
3.5. Replying Phase
3.6. Responding Phase
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Merchant Freight Forwarder
zc(Vc)x1
bmod p
5. {zc}
Figure 7. The Responding Phase.
3.7 The merchant reported the cargoes progress to
purchaser before merchant endorsed the bill of lading,
see Equation (10) and Figure 8.
ηc(zc)x1
amod p, (10)
Merchant Purchaser
6. {ηc}
ηc(zc)x1
amod p
Figure 8. The Report Business Phase.
3.8 In the same time, the shipping company will also
announce cargoes information such as arrival date, time
and place of port, see Equation (11) and Figure 9.
βcrkd
cmod p. (11)
Purchaser Shipping Company
7. {βc}βcrkd
cmod p
Figure 9. The Information Inquiry Phase.
3.9 When purchaser got an announcement from ship-
ping company, the purchaser will ready to fetch these
cargoes, see Equation (12) and Figure10.
ψc(βc)k1
cmod p. (12)
Purchaser Shipping Company
8. {ψc}
ψc(βc)k1
cmod p
Figure 10. The Supervision and Inspection Phase.
Proof. Omitted.
123243
3.10 In finally phase, the shipping company will result
the useful information after purchaser finished to picked
it up all cargoes, see Equation (13) and Figure11.
ρbykd
bmod p. (13)
Shipping Company
Freight Forwarder
9. {ρb}ρbykd
bmod p
Figure 11. The Checking Phase.
Puchaser
Merchant Freight Shipping
Company
Forwarder
1. Sc, rc
2. Wc, rc3. Tc, rc
4. Vc, rd
5. zc
6. ηc
7. βc
8. ψc
9. ρb
Figure 12. The protocol of this scheme.
1312321
Definition 1. Discrete Logarithm Problem (DLP)
When the calculation formula yigxi(mod p), and as
known parameters {p, g, yi}, to find the private key xi
while prime approaching infinite, it is very difficult to
calculate xi; it is impossible computation, in which case
the condition is called Solving the discrete logarithm
problem (Solving Discrete Logarithm Problem) [?]. The
current public key cryptosystem based on discrete loga-
rithm has value parameters that are greater than 1024
bit length or 2048 bit length.
Definition 2. Computation Diffie-Hellman Problem
(CDHP)
The Computation Dife-Hellman Problem [?]is derived
on the Diffie-Hellman key exchange principle (Diffie
Hellman Key Exchange) [?]. The main ideas are de-
scribed as follows: Given {g, gx, gy}to find gxy .
Here, gis known parameter, the xand yare unknown
parameters.
Definition 3. Decisional Dife-Hellman Problem
(DDHP)
The Decisional Diffie-Hellman Problem [?] is a variant
of the Dife-Hellman computation problem. Given
{g, gx, gy, gz}, to find the Zpis satisfied z=xy.
3.7. Reporting Phase
3.8. Announcing Phase
3.9. Getting Phase
3.10. Checking Phase
4. Security Analysis
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Given {g, gx, gy}, to find gxy . Here the parameter gis
known, and the parameters {x, y, z}are all unknown.
Theoretical Security Level Analysis Analysis security
of theoretical level
Lemma 1. If Purchaser is honest, then the Equation (5)
holds, that is, the broker verified the user.
Proof. As known the Equation (5) Sccalculated by
purchaser, if purchaser honestly use his private key xc
and nonce key kcto sign the Merchant’s public key ya
and semi public key rcsince
Scyxc
a·rkc
a(mod p).(14)
The merchant can re-express the Equation (7) to
Sc
?
yxa
c·rka
c(mod p).(15)
If merchant honestly uses his private key xaand nonce
key ra, the Equation (7) and (30) are equal to pass the
verification. Otherwise, it is a contradiction.
Lemma 2. If Merchant is honest, then the Equation (6)
holds, that is, the broker verified the user.
Proof. As known the Equation (8) Wccalculated by
merchant, the merchant honestly uses his semi key kato
sign in the contract, there include the freight forwarder’s
public key yb, and the purchaser’s semi key rc. Thus, we
can rewrite the the Equation (8) to
Wc
?
Sc·rka
c·yrc
b(mod p)
yxc
a·yrc
b(mod p)
yxa
c·yrc
b(mod p)(16)
Therefore, the purchaser and merchant verify each other
through equation (30), they can also verify each other
by Equation (31).
Lemma 3. If Shipping Company is honest, then the
Equation (6) and Equation (6) holds, that is, the broker
verified the user.
Proof. As known the Equation (8), the shipping com-
pany announces βcto purchaser, the purchaser can verify
whether the shipping company is honest, as shown in
Equation (32).
βc
?
rkc
d(mod p),(17)
and purchaser used k1
cto sign in ψcwhere
ψcrd.(18)
On the other hand, the freight forwarder can also check
whether shipping company is honest or dishonest; the
freight forwarder used x1
bto recover rdby τb, namely
τbrd.(19)
In summary, the purchaser and the freight forwarder can
verify the identity of the shipping company.
Lemma 4. If Freight Forwarder is honest, then the
Equation (6) and Equation (6) holds, that is, the broker
verified the user.
Proof. Because the merchant sent Wcand rcto the
freight forwarder, and then the freight forwarder returned
zcto merchant. Consequently, the freight forward pro-
duce Tcbefore he used yrcxb
bto sign the message. Based
on this point, shipping company can verify the identity of
freight forwarder. When Vcis generated by the shipping
company, it means that the four party agreement has
been generated, The freight forwarder generated zcand
transmitted it to the merchant, he also used x1
bbefore
decoding. It fully proves the freight forwarder honesty.
Therefore, it is impossible for the freight forwarder to
cheat only one side and be honest with the another sides,
or cheat both sides“merchant–shipping company”, it is
a contradiction with our assumption. Thus, the freight
forwarder have to honest in the stage “3-5” of phases “2-
3-4-5”; otherwise, from Lemma 1 to Lemma 3 became
contradictions.
Analysis security of practical levels
User identity leak concerns: investors to brokerage
orders, the identity with anonymity, Stock Exchange
even by Equation (16) to obtain the original content m,
stock exchange still does not know the original user’s
identity. The Securities Regulatory Commission obtains
the content mthrough equation (13), which does not
mean that the Securities Regulatory Commission knows
the identity of the investor. Therefore, the identity of
the investor is anonymous to the stock exchange and the
China Securities Regulatory Commission. To a certain
extent, the identity of the investor is prevented from
leaking in this link.
Leakage of the contents of risk: If the broker (system)
invaded, hacked-off attempt by the brokerage has made
investors under a single content is in vain. Only Stock
Exchange and the SFC in after signing, can the number
of bits of content is reduced to m, brokerage in before
the transaction return phase , such as the Equation (8)
and (9), are powerless to encrypted number of bits
content reduced to m. If the hacker colludes with the
4.1. Theoretical Security Level Analysis
4.2. Analysis of Practical Safety Levels
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stock exchange or with any party of the China Securities
Regulatory Commission, since the stock exchange or
the China Securities Regulatory Commission can only
obtain at most, there is no way to obtain the identity,
and there is still no need to worry about the exposure of
the identity under the risk of the original content being
leaked problem.
Key theft issue: Investors, brokerage rms, stock ex-
changes, and the China Securities Regulatory Commis-
sion each keep their own keys. Although their public
keys are public, hackers cannot use known public keys
to calculate the corresponding keys, a discrete logarithm
problem of the Definition 1, has been charged part
narrative. Unless any party who owns the key reveals
the key held by himself, this research does not consider
this assumption.
This research is mainly about the four-party supervi-
sion and management plan of investors, securities firms,
stock exchanges, and the China Securities Regulatory
Commission. The improved ElGamal algorithm is used
in the application of the securities industry regulatory in-
formation system. This information system is anonymous
and the identity of any investor is strictly controlled.
Keep it secret. If the brokerage (system) is invaded, hack-
ers cannot obtain investor transaction content through the
brokerage. If the hacker colludes with any of the regula-
tory agencies to deceive, he still does not have to worry
about identity exposure. If the investor has breached the
contract, the manager and the system center can track
the anonymous identity under certain conditions, and
finally restore the anonymous identity to the real-name
user identity. In this way, the investor’s security can be
protected. The identity is protected from exposure, and
on the other hand, it can deter investors from maliciously
defaulting on transactions. This program has the best of
both worlds. This research plan puts forward 6 lemmas, 3
definitions and 19 equations to run through the full text,
provide a strong theoretical support for the thesis, and
finally put this idea into reality. The real system proposes
a securities industry supervision system with anonymity,
non-modification, security, and double-blind mechanism
to achieve a combination of theory and practice.
The authors would like to thank the anonymous re-
viewers for their useful comments. This work is partially
supported from university project under the number
NUIT2020-001. This work also partially supported by
Guandong province special funds to foster the student’s
science and technology innovation under the number
PDJH2020B0689 (Climbing program funds).
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