Global Market Outlook on Blockchain
According to the industry reports, the global blockchain technology market is worth $210.2 million in 2016. It is expected to reach $2,312.5 million in 2021 at a CAGR of 61.54 percent.
Though blockchain has extraordinary potential to positively disrupt almost all the industries, chances of success is definitely increasing but the near-term success looks improbable. Going forward, reducing cost and simplifying the operations will be a major focus for many institutions, and blockchain will provide a clear way toward achieving these objectives. Industries will get to see acceleration of the emergence of blockchain test case solutions and it will become more prevalent.
Major Applications of Blockchain
- Cryptocurrency:It is a virtual currency that uses encryption techniques for secure transactions.Not easy to counterfeit and not issued by any central authority.E.g., Bitcoin.
- Distributed Cloud Storage: Provides ways to store data on a peer-to-peer network rather than having to rely on a central cloud storage service. Storing data in multiple locations increases the data security.
- Distributed Asset Ledger: It helps tracking ownership of real world assets through a piece of data attached to it and can be accessed by a private key that is held by the owner. So, controlling exchanges of assets in real-time in public ledger (blockchain) becomes easy and helpful.
- Decentralized Notary:The timestamp feature of blockchain validates the state of wrapped piece of data at a certain time. Hence, confirms the existence at a stated time that is further provable in a court of law.
- Smart Contracts:Smart contracts are computer codes that directly controls transfer of digital currencies or assets that are stored on a distributed storage platform (blockchain) and verified and executed by a network of computers in the blockchain.
- Decentralized Exchanges: It is an open source, peer-to-peer (P2P) cryptocurrency exchange platform. Customers are able to buy and sell cryptocurrencies securely without relying on a centralised exchange.
Blockchain Applications across Pharmaceutical Value Chain
- Research lab data and drug formula might be stolen or breached
- To verify user identity to access confidential data
- Data storage compliance and auditing requirement
- Clinical trial results manipulation
- Contracts need to be signed with CROs
- New drug application submissions only through paper to regulatory authorities in certain countries
- Patient identity verification
- Distributed manufacturing makes track and trace cumbersome
- Tampering of chemical formulas and improper mix of ingredients
- Tracking the origins of potential compounds
SCM and Distribution
- Difficulty in track and trace of drugs, due to complex drug supply chain
- Fake, diverted or stolen drugs
- Third-party required to verify the fulfillment of contract terms
Sales and Marketing
- Receipt of payments for drugs sold as per contracts terms
- Customer RFPs management
Applications – Smart Contracts
Smart contracts can be the most used applications of blockchain technology in pharmaceutical and healthcare sectors. It can be extensively used for automation of contracts, various payments made, and Intellectual Property signed in the above sectors as well as in other sectors
- Smart contracts are computer codes that directly controls transfer of digital currencies or assets that are stored on a distributed storage platform (blockchain) and verified and executed by a network of computers in the blockchain
- Executes a functional implementation of a certain requirement along with showing proof that particular agreements were followed or not
- Usually the implementations are fairly strict and make the breach of an agreement expensive.E.g., If a drug supply payment is not made on-time, the supply gets locked digitally until the payment is received
- Applies to almost anything and everything that changes its state over time and have a value attached to it
- Applications include, communicating with real-world assets, Internet of Things, financial instruments, smart property, etc.
- Replaces paperwork with automatic execution of the obligations unlike traditional contract
- Easy to program
- Gives distributed trustworthy calculations for parties in the contract
- Represents pieces of a legal agreement
- Contract outcome can be used for audit trail
- Real-time updates
- Lower execution risk
- Fewer intermediaries
- Lower cost
- Templated KPIs and SLAs
Use Cases for pharma
- While dealing with Contract Research Organisations (CROs), regulatory agencies, partners, research labs, clinical trials, suppliers, customers and other firms, smart contracts can be used to control asset transfers. It can also be used to access electronic records
- Smart contracts automatically enforces obligations, hence, no third party is required to track or verify each and every agreement