International Journal of Advanced Science and Technology Vol. 29, No. 03, (2020), pp. 6052 - 6058 ISSN: 2005-4238 IJAST 6052 Copyright ⓒ 2019 SERSC The Blockchain Revolution: A Game-Changing in Letter of Credit (L/C)? Emad Mohammad Al-Amaren* 1 ; Che Thalbi Bt Md. Ismail 2 ; Mohd Zakhiri bin Md. Nor 3 * 1 School of Law, Government, and International Studies University Utara Malaysia. 2 Prof. Madya Dr. Che Thalbi Bt Md. Ismail, UUM College of Law, Government and International Studies, University Utara Malaysia. 3 Dr. Mohd Zakhiri Md. Nor UUM College of Law, Government, and International Studies. amareenroma1993@gmail.com *1 ; chet1048@uum.edu.my 2 ; zakhiri@uum.edu.my 3 Abstract The paradox cannot really be avoided is that ‘modern technology’ is supposed to be more secure but are generally hard for people to trust. The blockchain appears as people assume it is such a panacea for the bright future of Letters of Credit (L/C). Conventional way of L/C that is a paper-based system in which it is needed to share and validate documents between parties in different countries make L/C mechanism slow, inefficient, and expensive. Involving advanced technology to payment method in international trade, while fantasize that L/C does not require such complex global paper-chase, this situation shall lead to a single system, transparent, end-to-end trade executed quickly between buyer, seller, and their respective banking partners This study found that blockchain will save effort, cost, time, number of document flow between various entity. Keywords: letter of credit, trade finance, blockchain, smart contract 1 Introduction Letters of credits (L/C) are consider as the main instrument in international trade. [1] It is considered one of the international contracts in general. [2] It utmost important appears through the fact that L/C looks after the interests of all parties in international trade, as it the most trusted method to secure the payment in a worldwide trade transaction. [3] International trade and the movement of goods between parties located in different countries have spread in the last century and have been one of the fundamental features of the current trade. By applying L/C method in international trade, the customer/applicant (buyer) will have a guarantee that the price of the cargo will not be paid without the seller showing that he performs the obligations allocated to him under their underlaying sale contract. Furthermore, seller get his money, and the bank will be paid a commission for his service as an intermediator in this transaction. [4] Although, there are a lot of problems with letter of credit in practice Many elements contribute in that such as; the novelty of the letter of credit itself, and the shortage of the laws governing letter of credit, examining the risk to find a legal remedy for it in letter of credit transaction, is a new technique to create legal awareness around the world. Despite all the advantages provide by L/C contract, the last still contains many risks during its implementation for all the parties. And the thing that make this risks more complicated and hard to solve is the fact that letter of credit are subjected to international rules and provisions, and to make the situation more worse many country did not codified letter of credit in domestic legal context, such as; Jordan and Malaysia, as well as lack of sources, legal text, researches, and due to the absent of the judicial decisions in addressing the risks in letter of credit, a question will appear about the ability of Blockchain and Smart Contract change the framework of documentary credit operation from a risky process, to safer, faster, and