Blockchain　technology　(BCT)　has　the　potential　to　revolutionize　the　supply　chain　financing　(SCF)　system　and　mitigate　the　detrimental　effects　of　demand　volatility　on　SCF.　As　one　of　the　first　to　examine　the　effects　of　BCT　implementation　in　SCF　from　the　perspective　of　demand　volatility,　we　focus　on　the　impacts　of　BCT　on　equilibrium　and　whether　the　retailer　has　the　incentive　to　adopt　BCT.　We　perform　a　comparative　analysis　of　the　Stackelberg　game　involving　three　parties　under　scenarios　with　and　without　BCT　adoption.　We　find　that　when　the　demand　volatility　reduction　coefficient　is　sufficiently　large,　BCT　can　facilitate　a　reduction　of　the　ordering　quantity　while　still　sustaining　the　same　service　level,　thus　avoiding　excessive　inventory,　and　reducing　the　associated　risk　of　bankruptcy.　Additionally,　the　decreased　bankruptcy　risk　enabled　the　bank　to　reduce　interest　rates.　The　adoption　of　BCT　can　improve　the　profit　of　the　retailer　when　the　adoption　cost　of　BCT　is　sufficiently　low.　Our　findings　provide　management　insights　into　when　the　small　and　medium-sized　enterprises　should　adopt　BCT　and　the　interactive　decision-making　of　all　parties　in　the　SCF　business　after　BCT　adoption.