Block chain explained
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Blockchain is a decentralized peer-to-peer system used to securely record transactions across a distributed network of nodes, eliminating the need for a central authority. Its applications extend to various industries, including healthcare and supply chains, providing benefits such as enhanced transparency, reduced costs, and improved security through methods like smart contracts. The document outlines the evolution, mechanisms, and advantages of blockchain, particularly in the context of drug supply chains and electronic health records.
Block chain explained
- 1. Block chain Explained Introduction to Block chain for Business Prepared by: Washiqur Rahman
- 2. What is Blockchain? • A blockchain is a peer-to-peer system with no central authority managing the data flow. a large distributed network of independent users. The network comprises of computers located in more than one location. These computers are referred to as full nodes. SECURED TRANSPARENCY IRREVERSIBLE DISTRIBUTED NETWORKPROGRAMMABLE Properties of Blockchain
- 3. Ledger
- 4. Central Ledger Distributed Ledger
- 5. Consensus: The Driving Force of Blockchains • In the blockchain world, consensus is the process of developing an agreement among a group of commonly mistrusting shareholders. These are the full nodes on the network. A user requests a transaction The request is transmitted to the network The transaction is added to the current “block” of transactions The network validates the transaction The block of transactions is then “chained” to the older blocks of transactions The Transaction is confirmed The transaction is kicked out or
- 6. History of Blockchain Stuart Haber and Scott Stornetta Published the concept of Cryptographic chain of blocks to store multiple documents in on block Concept of Cryptocurrency was introduced by Wai Dai Satoshi Nakamoto (Pseudonymous Person or Group of Persons) Published the concept of the Distributed Blockchain The First application based on the Blockchain technology was developed called as – BITCOIN The First transaction of bitcoin takes place. Blockchain works The First purchase was made through Bitcoins 1998 2008 2009 2009 20101991
- 7. Evolution of Block Chain Crypto Currency: Crypto currency is a decentralized form of digital currency that involves no middlemen in transaction. All the currency transactions are recorded in Blockchain which acts as the distributed ledger. Examples: • Bit Coin • Lite Coin • Ripple • Ethereum Financial Exchanges: Trading Platform Payment Platform Smart Contracts Know Your Customer (KYC) Regulatory App – Fraud Detection Leveraging to other Industries: Supply chain Management Governance Retail Networking and Internet of Things Health care Block Chain 1.0 Block Chain 2.0 Block Chain 3.0
- 8. Blockchain in Healthcare : SWOT Analysis STRENGTH WEAKNESS THREATS OPPORTUNITY 1. Lack of Standards and Guidelines for encryption of PHI. 2. Lack of trust over Blockchain for sensitive data. 3. Potential conflict with existing regulatory and compliance requirements of the healthcare industry. 1. Anonymous medical data can be used for population health research purpose. 2. Personalized care can be compromised without the privacy. 3. Giving beneficiaries more control over their medical data. 1. Lack of clear and coherent vision among the potential Healthcare clients. 2. Lack of decent number of software and system vendors. 3. Pilot projects are in the introductory stages. 1. Operational efficiency, tamper-proof capability and sharing of information. 2. Lowers cost of ownership 3. Individual’s identity can be proved without sharing too much of PHI. 4. Extensive interoperability due to the distributed network.
- 9. Centralized Vs Distributed Database Centralized ` Distributed Easy to maintain the data as the volume data stored and processed is limited All the data is located, stored and maintained in site in the network The data is stored in the storage devices that are located in different nodes in a network Ensures Data Integrity The requests to access data are processed by a single entity such as a single mainframe which leads to a bottleneck It is difficult to retrieve the data if the Database crashes Retrieving the data is easy even if the DB at one node crashes as the Data is replicated and stored in many locations. Accessing the data is faster as the data is stored in multiple locations. No bottleneck issue Ensures Data Security through Consensus Maintaining the data is difficult, But can store and Process the huge amount of data
- 10. Structure of a block Transactions Previous Blocks hash Difficulty level Merkle Root Timestamp Nonce A reference to the hash of the previous (parent) block in the chain A hash of the root of the merkle tree of this block’s transactions The approximate creation time of this block The Proof-of-Work algorithm difficulty level for this block A sequential number used for the Proof-of-Work algorithm The transactions recorded in this block
- 11. Hashing • Hash functions are small computer programs that transform any kind of data into a number of fixed lengths, regardless of the size of the input data 7F83B165Hello World Calculate Hash Value
- 12. Hash R1 R2 Hash R3 R4 Transaction 1 Hash R1 R1 R2 R3 R4 (Merkle root) Hash R2 Hash R4Hash R3 Transaction 3 Transaction 4Transaction 2 Merkle Tree Data block
- 13. Mining Previous Blocks hash Merkle Root Timestamp Nonce Block Hash Difficulty level Restriction
- 14. Generic Structure of BlockChain Previous Hash Transactions and other data (Genesis block) Blockchains are composed of three core parts: Block: A list of transactions recorded into a ledger over a given period. The size, period, and triggering event is different for every blocks in the blockchain. Chain: A hash that links one block to another, mathematically “chaining” them together. It glues blockchains together and allows them to create a mathematical trust. Network: The network is composed of “full nodes.” Each node contains a complete record of all the transactions that were ever recorded in that blockchain. Previous Hash Transactions and other data Previous Hash Transactions and other data
- 15. Public and Private Keys • The public key is given to everyone, regardless of their trustworthiness. Example: email ID • The private key is kept safe and private. Example: Password Hello World! @$%*123@#$%$ Hello World!
- 16. Traditional EHR Process… An electronic health record (EHR) is a digital version of a patient’s paper chart has patient-centered records and allow access to providers Traditionally, the interoperability of medical data among institutions has followed three models Push Pull View Push is the idea that a payload of medical information is sent from one provider to another, it is a encrypted transmission between two parties, and no other party has access to the transaction. For example, Sender (an E.R. physician) receiver (primary care doctor). Pull is the idea that one provider can query information from another provider. For example, Cardiologist could query information from your primary care doctor. View is the idea that one provider can view the data inside another provider’s record. For example, A surgeon in the hospital operating room could view an X-ray, taken at an urgent care center.
- 17. • Issues with Current process • Block chain Opportunities Establishing a Trust Network Cost per Transaction Limited access to Population Health Data Master Patient Index(MPI) challenges Data Standards Vary Disintermediation a Trust Network Reduced Cost per Transaction Distributed, secure access Distributed framework Real time shared data
- 18. Block chain Methodology Patients can authorize new members of their private, secure EHR community, approve changes Providers can add a new record, and patients can authorize sharing of records between providers Keeps participants informed and engaged in the evolution of their records. Honest sharing his or her experiences and conditions EHRs were never designed to manage multi-institutional, life time medical records, Patients leave data randomly across various organizations as life events take them away from one provider's data silo and into another.
- 19. Traditional Drugs Supply chain Pharmacist Manufacturer Wholesaler Patient Medical Records Distribution contract Supply contract Dispensing information 3PL Repackaging and labelling Supply contract
- 20. Challenges in Traditional approach • Security and authenticity cannot be verified • Counterfeit products cannot be prevented • Stolen merchandise cannot be traced • Probability of fraudulent transaction through third party • Lack of transparency between the subsequent parties
- 21. How does Blockchain help? • Authenticity through signatures – Only the parties with the private key can add details and these parties are verified through a digital signature. • Disintermediation – Removes the third party and makes the process more transparent. The decentralized nature invites more parties to connect with the manufacturer directly . • Consensus mechanism – A block is added to a Blockchain only when there is a mutual agreement among the peer nodes. This makes tampering the transaction/ distribution records difficult. • Smart Contracts - Helps in automating the process using Blockchain through custom in-built rules. This can be leveraged to endless opportunities of using the data. • Audit made easy – Blocks added to Blockchain are immutable and this helps in the transaction/ distribution records not being tampered illegally.
- 22. Smart Contract • A smart contract is a computer program that encompasses agreements between parties in the form of business logic. • Automatically executed when certain conditions are met. • It comprises of 3 parts: Prose represents the legal contract in regular language Parameters join the appropriate parts of the legal contract to the equivalent code. Code represents the program that is a computer-understandable representation of legal prose Prose Parameter •ID •Type Codes Smart contract template
- 23. Blockchain for Drug Supply Chain Manufacturers Wholesaler PatientPharmacy Block chain • Drug details • Unique # • Stock • Distribution • Stock • Dispensing Smart contracts Private key References • EHR • Consumption
- 24. Blockchain for Drug Traceability Manufacturer produces a drug and marks it with an unique code # a Hash is produced The information is stored in the block chain # Wholesaler verifies the origin of the product The transaction between the manufacturer and the wholesaler is added to the block chain # Pharmacist verifies the origin of the product The transaction between the pharmacist and the wholesaler is added to the block chain The manufacturer sends Drug to the Wholesaler The pharmacist dispenses drug to the Patient The wholesaler sends Drug to the Pharmacist # Patient verifies the origin of the product The transaction between the pharmacist and the wholesaler is added to the EHR in block chain Block chain
- 25. Advantages of Using Block chain To ensure • Medicine identification • Authenticity • Minimize the occurrence of counterfeit products on the market. Verification and validation TrackingTracing Notification To monitor • Where the medication has been • The environmental conditions during its travel • Where it has been sold/distributed • To ensure its safety to use. To protect • Against pharmaceutical theft during the supply chain journey. To establish systems and processes • To notify the FDA and other stakeholders if an illegitimate drug is found
Editor's Notes
- #5: Now the problem arises-whom to trust in distributed ledger?
- #6: A user requests a transaction The request is transmitted to the network The network validates the transaction---Here the participant (known as miner) has to solve a complex mathematical problem…the network verifies it. The transaction is added to the current “block” of transactions The block of transactions is then “chained” to the older blocks of transactions The Transaction is confirmed
- #11: Hash functions are small computer programs that transform any kind of data into a number of fixed lengths, regardless of the size of the input data
- #17: references