Using The Blockchain To Fight Counterfeit Goods

There are a lot of possibilities for blockchain technology, which spans across multiple sectors. Despite all of the negative connotations between Bitcoin and drug trading, the blockchain could effectively help combat the counterfeit drug problem.

Also read: Federal Reserve Sees Blockchain As An Integral Part of FinTech

Blockchain Can End Counterfeit Drug Issues

The healthcare industry is facing a lot of threats these days, and the counterfeit drug market is just one of them. Bringing an end to this illegal market will be quite the challenge, though, but the blockchain could be a welcome ally for the healthcare industry. One company is already working on this principle, by the look of things.

Accenture, a company well-known to blockchain enthusiasts all over the world, is interesting in exploring this principle further. To do so, they have started talks with the HyperLedger Project, which is run by the Linux Foundation. Addressing the gap in the technology between the healthcare and blockchain ecosystem will be the top priority.

If these plans would come to fruition, a trusted record of the provenance of drugs will be established. Counterfeit drugs are not that easy to tell apart from the official version unless the entire manufacturing record would be recorded on the blockchain. Multiple healthcare players have shown a keen interest in exploring these opportunities, which could hint at a future project come to fruition.

Trusting the supply chain of any drug is the key to ensuring the goods are legitimate. Under the current form, that is all but impossible, as there is a severe lack of transparency and accountability. With the counterfeit drug market bringing in over US$75bn in annual revenue, a solution has to be found sooner than later.

Other sectors could benefit from a similar approach as well. Counterfeit goods come in many forms, shapes, and sizes. Recording the manufacturing process using distributed ledger technology will be a great way to achieve this goal. Various members of the HyperLedger Project have proposed this approach to target counterfeit electronics and improve global food labeling.

Source: IB Times

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