current insight using blockchain in the pharmaceutial cold chain
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The document discusses the potential use of blockchain technology in the pharmaceutical cold chain, comparing it to traditional databases. While blockchain offers benefits like immutability, transparency, and enhanced security, its application in the pharma supply chain remains uncertain due to existing solutions like serialization and the relatively short shelf life of pharmaceuticals. The conclusion suggests that until blockchain proves its utility in other industries, traditional database solutions may be more effective for end-to-end monitoring in pharmaceuticals.
current insight using blockchain in the pharmaceutial cold chain
- 1. Current Insight Using Blockchain in the Pharmaceutical ColdChain FACT SHEET
- 2. User Management Data Acquisition Data Acquisition User Management User Interface & Reporting Data Processing Data Processing User Interface & Reporting UsingBlockchaininthePharmaceuticalColdChain Inthepastfewyears,theuseofblockchainforthepharmasupplychainhasbeenwidelydiscussed. Afewcompanies have already tried to find use-casesin theindustry but so far withlimited success. Tounderstand the reasonforthis, we needtofirstlookat the difference between aclassical database and ablockchain. Elements of a supply chain solution A supply chain data management solution is more than just a place to store and secure data. Today with auto- mationtechnologies,sophisticatedsoftwareandAI–supply chain data solutions are expected to seamlessly process highvolumesofdatain seconds,provide locktight security and compute unlimited parallel algorithms. Let’s compare a supply chain solution using a database as well as a solu- tion usingblockchain. The main difference lies in the level of centralization of thedata storageand security measures. Whilein asolution working with a simple database, all records are secured in one central location, each participant on a blockchain has a secured copy of all records and all changes. Supplychainsolutionwithsimpledatabase Supply chain solution using blockchain Blockchain Copy Copy Copy Central Database Back-up Database (for Blockchain Administrator)
- 3. Howisblockchaindifferentthan your standard database? In a database, the owner of the database is responsible for the safety of the data (protection from loss or mani- pulation). Inablockchain,each usercan verify wherethe data comes from and who has added changes to the data. Blockchainhasanadditionalsecuritylayermakingsurethat after data collection and archiving, nobody can manipulate the data. Blockchain takes enormous calculation capacity with constant encryption, distribution of the data (blocks) to countless participants, and continuous comparison of data. Thus adding a blockchain, means adding significant computingcapabilities.InChina, wheremostofthe Bitcoin mining takes place because of low energy cost, they build entire power plants feeding the Bitcoin mills. Database Blockchain What is it? A database is a structure where data is collected in a structured way. Blockchain is a growing list of records (blocks), thatarelinkedusingcryptography.Eachblock contains a reference to the previous block (so called “cryptographic hash”) a timestamp, and transaction data. Where is the data? Central Decentralized Redundancy One copy (no redundancy) Exact copies of the same data in many places Protection from loss Back-up and recovery Secured by the system Protection from wrong data entries Firewalls, encryption, user management, authentication Firewalls, encryption, user management, authentication Protection from manipulation No-delete functionality, audit trails After the data is in the blockchain, there is no manipulation possible (since the data is replicated to many users keeping a copy). Trust in data collection Database owner must make sure that data entered into the database has the right quality. Softwareprovider(usingblockchain)mustmakesure that data entered into the blockchain has the right quality Trust in data storage and long-term archiving Database owner warrants for the trust Secured by the nature of the blockchain Cost for data protection (protection from loss and manipulation) Thesamedatamustbeprocessed,authenticated and stored in manyplaces.
- 4. What are the overall benefits of blockchain? Blockchainisarevolutionarytechnology sinceitoffersnew ways of collaboration and information exchange of many partners in a supply chain. It has various benefits: > Immutability:Dataoncestoredcannot bemanipulated or modified > Transparency:Offerstransparencysothatbusiness can track every systemdetail > SubstituteforTrust:Partiesthat don’t knowortrust each other cancollaborate > Traceability:Offersall-timetraceabilitythat prevents fraudulentactivities > Security:Utilizeshigh-levelcryptography algorithms and methods Blockchain can solve problems traditional databases have never solved before.Oneofthebest-known examplesisin the diamond business where there is a lack of transparen- cy and trust in the entire industry. Diamond miners don’t trusttheprocessors, theprocessorsdon’t trustthedealers and how should the end-customer trust the claimed origin of a diamond he is purchasing in a jewelry? A blockchain solution where each diamond is registered centrally and all involved parties can exchange information on one single items along the supply chain is truly solving a problem to many involved parties. Isblockchainsolvingthepharma supplychainchallenges? Would a blockchain also solve the problems of the pharma supply chain? Many participants are along the supply chain dealing all with the same product but today they are hardly exchanging information. Wouldn’t it be great, if we had a system where all the information on the drug product is shared across the supplychain? > Patients would be sure about the quality of drugs. The data in the blockchain would tell them that the drug is an original and OK to use, not expired and total time out of refrigeration(TOR)hasnotexceededthestabilitybudget. > Market Authorization Holders (MAH)couldgain valuable information on the supply chain efficiency as well as on the patients (where and when is my product used?). Blockchain could solve many of the problems of the pharma supply chain. It could even be a substitute for trust and it could offer all-time traceability. The problem is: 1. That lack of trust between the supply chain partners is not the main concern in the pharmaceutical industry. Serialization has pretty much solved the problem of counterfeit. 2. Traceabilityisnecessaryforpharmaceuticals–butthe argumentthatblockchainoffers“alltimetraceability” is stronger for diamonds lasting generations than for pharmaceuticals having an expiry date of average 18 months. 3. Without true innovation, blockchain is just adding extrasecuritylayers(whicharenoturgentlyneeded) and this is adding extra cost without increasing efficiency or making other steps redundant.
- 5. Immutability Data once stored can not be manipulated or modified. Transparency Offers transparency so that business can track every system detail. Substitute for Trust Parties that don’t know or trust each other can collaborate. Traceability Offers all-time traceability that prevents fraudulent activities. Security Utilizes high-level cryptography algorithms and methods. Benefits of Blockchain for Pharma Supply Chain Benefits of a Database for Pharma Supply Chain Summary It is clear there are benefits using blockchain for many applications, especially those that require a high level of security and need to solve trust issues between trading partners. Currently, it seems the concept and application for using blockchain in the pharma supply chain is notfully formulated and benefits would not be quickly realized. This new technology will be successful in other industries first before it finds its way into the pharma supply chain. Therefore,aclassicaldatabaseisprobablythebetterchoice to solve the end-to-end monitoring challenge. Security Can also use high-level cryptography algorithms and methods. Audit-Trail Offers traceability that prevents fraudulent activities. Efficiency Database is an efficient way to keeping and exchanging data. Transparency Offers transparency so that business can track every system detail. Add-only Don’t allow changes to raw-data, each change is kept in an audit trail.
- 6. ThisFactSheetispartoftheColdChainMonitoring&Logistics website content for supply chain and QA practitioners. Topics include elements of a supply chain solution; how a blockchain is different than your standard database; the overall benefits of a blockchain; and if a block- chain is solving the pharma supply chain challenges.