Why is the Pharmaceutical Industry Adopting Blockchain Technology

Pharma Tech Outlook: Pharma Tech Magazine

Why is the Pharmaceutical Industry Adopting Blockchain Technology

Stacey Smith, Pharma Tech Outlook | Monday, October 26, 2020

The pharmaceutical industry is moving towards blockchain technology because it is more secure and transparent than other digital technologies.

FREMONT, CA: The origin of blockchain technology is in cryptocurrency, and it was utilized for establishing Bitcoin, which is the first workable digital currency. Today, technology is used for various industries because it provides a distinct combination of features that cannot be achieved with other digital technologies.

The unique features of blockchain technology consists of immutable, permanent, signed, and time-stamped records of the proprietorship of assets for several identities, contractual commitments, types, and transactions that can be shared with every member of the business in near real-time. Such records are stored in several thousands of computers worldwide.

The most critical factor about blockchain is its unhackable nature without authorized access. When a record is added to the chain, it is impossible to alter or delete the data as new blocks can be added only to the end of the chain. There are several benefits of blockchain technology in the pharmaceutical industry, including allowing physicians, pharma companies, patients, and payers to access the records. They can access any medical records according to their requirements like enhancement of the supply chain, provider credentialing, drug pricing strategy tracking, prescription sharing, tracking and reporting of clinical trial data, adverse event tracking and evaluation, and quality-of-care tracking.

Top 10 Supply Chain Management Consulting/Service Companies in APAC - 2020Focus on Improving the Pharmaceutical Supply Chain

The pharmaceutical industry is trying to focus on improving the supply chain with blockchain technology due to its ability to secure and increase the speed of transactions all over the world.

The demand for blockchain technology is increasing in the pharmaceutical industry because it can develop an auditable trail and establish drug provenance within the overall supply chain. With the help of a decentralized blockchain solution, it will become easy for the manufacturers and clients to individually verify the quality and point of origin of the drugs securely and rapidly. 

For the pharmaceutical supply chain, transparency and security are also the two significant advantages of blockchain. Every stakeholder related to the supply chain can share and update data while ensuring that the data is accurate. It will also become easy to manage the entire supply chain with a single software with blockchain, and it can be shared among the authorized stakeholders.

See also: Top Blockchain Technology Solution Companies

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