Companies Have Joined to Help Pharmaceutical Supply Chain Using Blockchain Technology

The fever of “Blockchain” came to people right after the rise of “Bitcoin”. The blockchain is the fundamental technology of Bitcoin and is also regarded as the innovative technology in the era of digital economy.

At present, all around the world, including the United States, Britain, Japan, Germany, Canada, Australia and other developed countries have recognized the huge prospects of blockchain technology, and have begun to put this technology to the industries include medical, Internet of Things, supply chain management, Energy management, IP management, cybersecurity, education, gaming, voting, forecasting, cloud storage, sports management, government public records, retail, philanthropy, human resources, etc. More application scenarios are still expanding and continuing to develop.

Citing the White Paper on China’s Blockchain Technology and Application Development (2016), its broad concept is to use blockchain data structures to validate and store data, use distributed node consensus algorithms to generate and update data, and use cryptography to ensure the security of data transfer and access, using a smart contract of automated script code to turn and manipulate a new distributed infrastructure and computing paradigm for data.”

In the blockchain, each event and transaction has a timestamp that becomes part of a long-chain or permanent record that cannot be tampered with. On a blockchain without permission restrictions, all parties can view all records. On a blockchain with restricted permissions, parties can determine which member can view which transaction through the agreement in order to maintain privacy. and the parties can hide their identity when needed. In this way, the blockchain achieves a complete record of the entire lifecycle of the asset. All records, whether it is a patient health record or a bottle of pills, are clearly visible as the asset flows through the supply chain.

The traceability of the blockchain also includes traceability of medical incidents, backtracking and supervision of drugs. For instance, establishing a drug consistency logistics distribution and management system can pose a fatal blow to counterfeit drugs. Since blockchain data is instantly updated and widely shared, pharmacies, manufacturers, patients, regulatory authorities, and many other people can observe data flows in real time, including drug manufacturing and distribution information, thereby we can strengthen the drug regulation and prevent counterfeit drugs from entering the market. It is reported that Blockverify in the United Kingdom is one of the organizations that carry out “drug source” pilot projects to help medical personnel to verify the authenticity by scanning the drugs.

In 2017, Chronicled launched the MediLedger Project to help Pharmaceutical Manufacturers and Distributors. They are building their system to help and bring an improvement in the operation of the supply chain, reduce the cost of following the regulations while improving the safety and security. They are developing five functions to the system including “Saleable returns”, “Exception Management”, “Interoperable DSCSA system”, “financial processes” and “Chain of Custdy”.

Healthy CELL Chain is jointly built by a number of experts in the field of the Blockchain and medical institutions. It is an ecological system based on the Blockchain 3.0 technology,

The CELL network will allow the users to access the data anonymously, while the data is secured. The Healthy CELL Chain will integrate the industry to create a user ecosystem. A complete loop would be set up including ordinary users, Pharmaceutical Manufacturers and Distributors, health equipment manufacturers, scientific research institutions, insurance companies, etc.

The system would be able to use the traceable feature of Blockchain to find the original source of every single medicine, for example, the origin of raw materials for medicine, transportation of raw materials, production process of the medicine, packaging process and distribution process. Every single step is recorded to insure the safety and authenticity of the medicine so the process of distribution would be much more simple and efficient.


CELL White Paper. (2018 June). Healthy Cell Chain. Retrieved from

Mediledger. (n.d.). Mediledger. Retrieved from

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