Category: Blockchain

Drug Companies Consider Blockchain for the Supply Chain


  • For some years, drug businesses have struggled to track products throughout the supply chain. This drawback has made it easy for counterfeiters to introduce fake drugs into the market.
  • To counteract the problem, a new system for tracking and tracing drugs is needed. Researchers believe blockchain can provide the technological foundation for such a system because it can track legitimate drugs and help prevent the circulation of fake ones.
  • Rarely do the makers of artificial medicines do the logos of reputable organizations to dress their products inside the market. Although a global obstacle, this system unfairly affects growing countries.
  • Artificial drugs are spread throughout an extremely complex network, making them tough to identify and remove. To restrict their distribution, a policy is required one can trace and follow drug distribution at each stage. Blockchain is the most advanced discovery that guarantees to achieve this goal.
  • Blockchain was designed to assist as the activity of log for Bitcoin. It provides a distributed record for the storage of data records, which are organized in many “blocks.”
  • The gathered data covers the date, time, price, and associates involved in every activity. When an individual block changes, everything of the pieces update respectively, assuring up-to-date data for each action.

Why the drug Supply Chain needs an innovative solution:

  • Transparency:

A lack of clarity can be one of the important challenges that raise concerns like counterfeits, drug deficiencies, and opioids. 

Retailers, Patients, and regulators don’t know wherever drugs have been begun and what is the system of production. Furthermore, if a drug was contaminated at the point of production, the supplier could be called to address the concern due to a deficiency of transparency.

  • Supervisory compliance:
Australia imports around 40% of manufactured drug products and 80% of active pharmaceutical ingredients. From drug forming to distribution, each level needs to comply with regulations following the Drug Supply Chain rules. 

Implementing such rules involves lengthy paperwork and time-consuming. Hence, matching the criteria for traceability requires meaningful moves.

  • Transportation Cold-chain:

Various of the world’s top-selling drugs are sensitive and demand cold-chain transportation, i.e., stocking goods in a temperature-regulated environment. Having the drugs cold is a vital part of the supply connection that connects drug manufacturers to patients. But stocking the primary data associated with cold-chain transportation in centralized databases can be prone to manipulations of information hacks. Additionally, the current software makes not hold the tracking aptitude of maintaining a complete chain of status.

How Blockchain-enabled drug supply chain solution work?

Divided into main 4 parts



Transportation Service Providers






A producer produces the drugs and attaches the QR code over them,

This QR code includes basic data like:

    • timestamp
    • product name
    • locating
    • production and expiry date

The information computed by the producer gets put on that blockchain, giving clearness to the supply chain to distinct stakeholders. Once information is appended to the blockchain, a hash ID is generated that can be applied for tracking the activities.

The drugs can be shipped to the businesspeople via IoT-enabled carriers with weather sensors to let cold-chain transportation.

Transportation Service Providers

With the use of Hash ID saved on the blockchain, businesspeople can confirm the source of drugs after getting them from the transportation service providers.

The confirmed activities trigger the bright deals to ship drugs to the hospitals/Drugstore.


Druggists get the drugs that can be traced back to identify their source, applying the hash ID gathered on the blockchain.

Assume any unauthorized businessperson tries to sell bogus drugs by artificial drug IDs to druggists or patients. In that matter, the action is regarded invalid because of the bogus data attached regarding the drug.

Once the druggist allows the derived drugs, the action between them and the businessperson is attached to the blockchain, confirming the legal deal.


Patients can assure if the drug they are purchasing is trustworthy or not. Via scanning the QR code assigned to the drug’s packaging through their mobile app, people can identify its origin and quality measures.

The drug supply chain’s action data maintained by blockchain is unity-driven, translucent, and stable.

By ethically executing advertising and using reliable analytics providers, you can guarantee that your user data never accidentally leaked to hackers or malicious business vendors.

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Drug Companies Consider Blockchain for the Supply Chain
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