Blockchain Solution for Healthcare & Life Sciences Industry
Blockchain Based Enterprise Applications
EXPERIMENTING BLOCKCHAIN IN CIVIL AVIATION
Blockchain technology, which is disrupting almost all the economic sectors, is now expected to make their place in the Aerospace and Defense (A&D) industry as well.
Blockchain technology can be used primarily to improve data sharing in the A&D industry and it can further enhance product design, manufacturing, and maintenance of life-cycle in the A&D industry.
The A&D industry has one of the world’s most vast and complex supply chains. Blockchain technology offers a new, transparent and secure way for the industry to track and trace multiple components. At the same time, it deters duplication and improves maintenance capabilities of the supply chain. Blockchain, if used in combination with technologies like digital twins and digital threads, could ultimately be a game-changing innovation for this sector.
Blockchain for Aerospace & Defence – Adoption
According to recent reports by Accenture, Aerospace and Defence enterprises are all set to adopt blockchain technology in the next three coming years.
“86% of Aerospace and Defense (A&D) companies will integrate their corporate system with blockchain technology by 2021.”
Further, the report suggests that Blockchain Technology features- secure, decentralized, and immutable- can help aerospace and defense entities lower maintenance costs, increase vessel and aircraft availability, and eliminate errors in tracking parts.
Immutable Blockchain for Aerospace
Blockchain technology can help address numerous data challenges related to the supply chain of the A&D industry. More than 70% of the A&D executives surveyed think that companies can be found struggling with increasing waves of corruption. The reason is more falsified data penetrates their data-driven information software and systems.
In addition, 73 percent of them believe that automating data-driven systems can enforce huge risks, including fake data, data manipulation, and inherent bias.
Indeed, Blockchain for Aerospace & Defense companies enables creation of a single source of truth where information can be stored, shared, and data is authentic always.
Blockchain for Aerospace & Defence – Can ‘Immutable’ feature improve their Supply-Chains?
Several features of supply chains in the A&D industry seem to benefit from blockchain. Specifically, the supply chains have many stakeholders that must share highly technical data about parts and materials. Blockchain can help to eliminate the chance of duplicated or falsified data and verify its accuracy as it can provide a secure and immutable chain of data.
Currently parties across A&D supply chain – aircraft manufacturers, airlines, and maintenance providers store configuration data in their own systems and hardly look to integrate that information with other companies’ data. The technology can also help in maintaining a continuous flow of aircraft configuration data through the maintenance of the entire supply chain of Blockchain for Aerospace & Defence.
Moving Forward
The blockchain is designed to provide highly secure, immutable, and traceable data records across a distributed platform. The A&D industry is a geographically distributed supply chain that serves an equally distributed set of operators, all of whom value data traceability, immutability, and security.
While A&D characteristics may appear to be a natural match to the blockchain strengths, companies should understand that Blockchain is still maturing so now is the time to learn and prepare as they begin their journeys in Blockchain for Aerospace & Defence.
HOW CAN BLOCKCHAINS MANAGE THE MENACE OF DRUG COUNTERFEITING?
Blockchains in Healthcare & Life Sciences
Blockchain is a highly potent technology that leverages Distributed Ledger among different parties and also helps them secure trust unanimously. This entrant technology has the potential to impact all facets of business and commerce across all industries.Decentralized Applications for Healthcare and Life Sciences are a result of consistent innovation by technology leaders from the healthcare side of business.
What is the massive problem of drug counterfeiting faced by healthcare and life sciences industry?
The core problem of drug counterfeiting in the healthcare industry is one of the most significant challenges faced by the respective industry in the present day. The problem is that there is a long supply chain starting from the raw material supplier for medicines and ending up with the patients. This is a highly vulnerable channel through which people and groups with malicious intentions of introducing spurious drugs are consistently working on flooding in the circuit with counterfeit drugs. There is no policing and control over the extended supply chain, the lucrative benefits of drug counterfeiting motivate people with malicious intentions to manufacture duplicate drugs of low quality and compromised drug potential. Further, they supply them disguised among the large lots of original, high-quality medicines.
Widespread health issues
Counterfeit drugs when reaching the patients or consumers in need put them under the considerable health risk due to quality or even wrong drug being distributed disguised in original medicines. It is a huge matter of concern for the healthcare industry as it causes deaths and several other severe illnesses which people suffered due to the consumption of counterfeit drugs. It is having a straight effect on the reputation and brand will of pharmaceutical manufacturers as well.
This mainly happens because a layman who is suffering a severe ailment is generally incapable of figuring out that these medicines are counterfeited. They will have either diminished defects or will cause them some other terrible health problems. They think that the drugs from the company are incapable of curing the ailments and also get a reason to express distrust in the healthcare system including the hospitals and doctors prescribing the medications. Even doctors are facing the challenge of credibility because they tend to prescribe quality, suitable medicines, but patients blame them for wrong prescription as the problem of drug counterfeiting victimizes them.
The problem with pharmaceutical manufacturing business
The counterfeiting directly results in loss of credibility and a substantial drastic decrease in the reputation of the company in the market. It is merely because patients consuming those medicines are not benefited by them on merit. They think that the company is incapable of producing quality medicines. It is a problem for all stakeholders of the healthcare and life science industry that is far from the general awareness of a common man but suffered by all.
Supply chain management solution: Blockchain-based decentralized applications for healthcare and life sciences
Why are Blockchains capable of fighting drug counterfeiting?
Blockchain is a primary example of an immutable, highly transparent and trustworthy distributed ledger technology. In simple words, every transaction can be documented as a permanent record of operation is virtually impossible to be altered, forged or misrepresented. Blockchains in healthcare and life science industry offer highly efficient supply chain management solutions. These solutions are far from the risk of being compromised by any person or third-party with malicious intentions of counterfeiting drugs. Blockchains allow healthcare industry businesses to set up nodes at different places to help the industry overcome geographical and temporal challenges all across the globe.
All the businesses can leverage 100% credible anonymous trust among third parties on a decentralized consensus with blockchain-based supply chain management solution for healthcare and life sciences.
How does it work?
Blockchains are capable of hosting a multi-node supply chain management system which involves all the primary and secondary stakeholders of the healthcare industry. The stakeholders include the raw material supplier for medicine manufacturing, pharmaceutical manufacturer, third-party logistics, distributors, retailers, and doctors. Decentralized Applications for Healthcare and Life Science Industry will help each of these stakeholders to record transactions of medicines or related goods. While others can coherently approve these transactions after verification.
These transactions are completely secured and help parties build much trust in operations and help them maintain transparency as the raw materials and manufactured drugs are passing on from the manufacturer to the logistics company and then in the distribution and sales channel. The digitally documented passage of drugs with different stakeholders as milestone will keep it highly transparent in the digitally recorded journey of drugs. It involves varying stakeholders as milestone who will keep it highly transparent. Moreover, it will be much easier for all the stakeholders in the supply chain to ensure that all the drugs that have been manufactured reach the patients without any slack or introduction of counterfeit drugs.
Problems unsolved after Blockchains in Healthcare & Life sciences
One of the primary concerns of the healthcare and life science industry is fault tolerance ability of blockchains in case of potential errors. As the sector readily moves in towards adoption of blockchains, the capability of blockchains at handling fraudulent transactions and safety of original, authenticated data is still a mystery. One doesn’t know if blockchains can turn corrupt due to bugs in the functional code or there may be a horrendous loss of critical data which be really difficult or even impossible to be procured again.
The futuristic approach for Blockchain in Healthcare and Life Science Industry would help you understand that as Decentralized Applications in Healthcare & Life Sciences increase to the due stature of fame, the number of private ledgers are bound to arise. In that case, companies in business ecosystems will try to keep their information and operational data private to protect the market share and profits. In such a scenario, it will be challenging to maintain interoperability across private and public blockchains for a more extensive spread use.
Conclusion
Drug counterfeiting is a significant problem in making companies lose profit in the range of $75-$200 every year. Apart from the monetary loss, direct damage to their reputation and brand will is undoubtedly unhealthy for a growing business. Technology has an answer to some of the front facing problems in healthcare and life sciences industry. The maturity and stability curve of sustainable technology solutions can be fast-tracked with the help of leading Blockchain Development Company. It will surely be like an investment for stellar growth in the dimension of technology and a sustainable business process that grows with scalability and interoperability.
CAN BLOCKCHAINS CHANGE THE WAY AEROSPACE AND DEFENSE COMPANIES EXECUTE BUSINESS IN 2019?
HURDLES IN USE OF BLOCKCHAINS FOR AEROSPACE AND DEFENSE INDUSTRY
The Blockchains for Aerospace and Defense Industry have gained immense limelight when the world has been experiencing decision transformation for the initial impact. Unfortunately, even though the enormous buzz created by blockchains, there is still a significant lack of information. It is acting as a setback for the tech business industry.
According to a survey conducted in 2018, a shocking only 20% of employees were clear in perspective about what the company was precisely doing with blockchains. People admitted that they had a very feeble idea of how their company was looking to incorporate Blockchain in the business process. There were a substantial fraction of 20% respondents who said that their companies are yet to get their first hand on the Blockchain. However, there can be numerous reasons which withhold the business from incorporating blockchains, but there is a need to look at that change for making you a sustainable business in the digital transformation age.
PRESENT SCENARIO – AEROSPACE AND DEFENSE INDUSTRY
In-depth, complex supply chain management requirements
Supply chain management is an integral process of A&D companies. Generally, there are numerous systems and subsystems which are efficiently integrated for the exchange of information. And finally, building a supply chain management system which barely meets the basic requirements and comes with the possibility of failure due to heavy load. The commercial aviation business has an intricate design of operations which collectively decide their modus operandi for delivering quality service is in the domain. This requires massive coordination from the on-ground staff, logistics, and the pure aviation wing. A significant problem is waiting to be solved.
Highly dynamic database
The Aerospace Industry involves rigorous use of some of the most active use cases of a database. They require immense precision due to the critical nature of operations. The operations are dependent on the information available through records alongside concurrently occurring transactions. It is a multi-stakeholder operation which at times causes deadlocks and wrong allocation of resources; if handled through a conventional database management system.
Aircraft maintenance and changing partners
It might look like a problem indirectly related to a database, but the acuteness forces businesses to solve this problem separately. In the aerospace and defense industry, aircraft are once purchased and then precise, quality standard matching maintenance is performed on a very regular basis. This is a never-ending process which gradually gains importance as aircraft tend to dip in performance. The curve of maintenance duration is so long that it generally witnesses numerous vendors and participants. It is the long, complicated process which is experiencing different approaches of digitalization but none of them has completely solved the problem.
Data security and authenticity
Aerospace and defense industry generally operates in a very critical spectrum of data information and the secrecy of operations. It is the primary reason behind a dire need of a Highly Secure Data Storage and Management System. Apart from the room, there is a requirement of authenticity as well. Authenticity is the primary concern in B2B, B2C, and defense based businesses. There are many sets of information like company record, contracts and MoUs that have highly critical information which requires a version management system and complete security.
HOW CAN BLOCKCHAINS FOR AEROSPACE AND DEFENSE INDUSTRY CONTRIBUTE?
Blockchain-based SCM
The Blockchains for aerospace and defense industry capable of single-handedly hosting the most complex supply chain management systems for all use cases of aerospace and defense industry. Blockchains can be used to create digital authentication and quality checking-based supply chain management systems. There is a provision to use private blockchain infrastructure which doesn’t allow any other parties to communicate with the actual nodes of the respective blockchain. It requires authenticating handshaking.
Blockchains for aerospace and defense industry also enable safe and reliable peer-to-peer communication network which is an essential part of an efficient supply chain management system. Here, the information and operations can be tracked in the pipeline process by all the world stakeholders with utmost convenience. Blockchains have decentralization related features like immutability, high transparency, and reliable, trustworthy operations.
Immutability of Records
Immutability of record means that no intervening party of the blockchain infrastructure can anyhow make changes to the data or perform any missions with malicious intentions like forgery, misrepresentation, and involvement. This is one of the highly utilized features of blockchain technology that the database consists of a hundred percent immutable records. It adds immense credibility to the database and reduces the chances of errors, elevating the level of precision. Aerospace and defense industry is benefited because they maintain a large, dynamic pool of shared information which can compromise situation is if there is a tweaking of records.
Multi-stakeholder operations and multiple participant facilities
Aerospace and defense industry requires a long gradually important bargaining process of moving aircraft maintenance. Blockchains for Aerospace and Defense Industry keep a track of maintenance operations and ensure the highest quality standards. This can be done through Blockchain has all the information that can be set up on the Blockchain infrastructure replicating across nodes for various stakeholders.
As the maintenance vendors and quality check participants keep on changing with time, documentation of information and tracking of records is a tedious task. Blockchains for Aerospace and Defense Industry allow unknown third parties to authenticate themselves and communicate through the note based on technology. This is one of the oldest and the most first use cases of blockchains. Unknown third parties like maintenance vendors and quality check participants keep on changing with time, documentation of information and tracking of records is a tedious task.
Blockchains allow unknown third parties to authenticate themselves and communicate through the node based technology. It is one of the oldest use cases of blockchains. Unknown entities can be enabled to leverage decentralized consensus without prior information and knowledge of the background.
Use of highly efficient smart contracts
Smart contracts are the basic units of highly protected information which can either be compromised or destroyed by any party. It is one of the safest ways for the aerospace and defense industries to store their data and maintain a continuous decentralized consensus on terms, conditions and operations.
THE FINAL WORD
It is evident that the primary use cases and top-notch efficient features of blockchains convincingly coincide with the most critical problems of Aerospace and defense industry. As the technology world is gradually outlining primary use cases with similar issues of different sectors, we are reaching the fourth mini-revolution in Blockchain Technology called Blockchain 4.0. In this, it is speculated that blockchain will come out with a new face of Blockchain as a Service or BaaS. It will be retail-based services where various businesses can use the blockchain infrastructure through pre-built customizable blockchain-based business products. The exploration and realization related to blockchain or creating outrage. It will be interesting to see how they mature for a sustainable business of Blockchains for Aerospace and Defense Industry.
BLOCKCHAINS & DLTS 2019: DISSOLVING THE ENIGMA FOR BANKING & FINANCIAL SERVICES
Technology has always rocked the cradle of business, and its inevitable influence is explicit in recent times. FYI, the Blockchain market is predicted to grow beyond an enormous figure of $3 trillion by 2024. However, the number seems beastly big, but there is a substantial uproar in numerous industries. The primary contributor among all of them is the banking and finance sector. Apart from business, Distributed Ledger Technologies (DLTs) and Smart Contracts are helping blockchains evade businesses at a whopping rate of 42% every year. It is comprehensively supported by venture capitalists who have invested more than $1 billion into blockchains in 2018. Amidst a vast buzz and talks around the industry, the equation of technology-driven growth in finance seems to have numerous variables in accordance that they are collectively building up a sustainable hype.
Blockchains, Distributed Ledger Technologies (DLTs), Smart Contracts. How are they related?
There is a trend of C-levels and other mature minds of the tech business industry talking about blockchains and several uses. Here is the simplest explanation you could ever find. Distributed Ledger Technologies (DLTs) are nothing but a decentralized database which is automatically updated on all the transactions across nodes that are processed before confirmation or so-called ‘proof of work.’ Any technology which works and implements the same concept will fall under the bracket of Distributed Ledger Technologies (DLTs). The Blockchain is the famous player conceptually executing the same. A Smart Contract is nothing but a digitally crafted, dual authenticated statement which specifies the ownership of physical or digital asset owned by a party after the sale from another. So basically, a Smart Contract is nothing but a digital receipt of a transaction stored on the decentralized database of a DLT called blockchain.
Why Banks & Financial Service Organizations are adopting Distributed Ledger Technology as a part of the Digital strategy?
What motivates the use of Blockchains?
With numerous banks and financial service organizations collaborating, forming a consortium and investing a lot in research and development, it gives a massive incentive for the followers to magnify the numbers.
Where can DLTs & Blockchains contribute?
Sloppy payment channels, a token of trust
Businesses are getting steep, and the lagging finance system mostly feels the pressure. The world is becoming extensively global, and companies are increasing their reach beyond borders. In such a scenario, slow payment transactions have been a bottleneck for growth and larger volumes of business. Numerous companies are considering it as an impediment for communicating, collaborating and building mostly cohesive companies in the era where partnership is the greatest mantra. When we talk about cross-border payments and active transactions, security concerns are inevitable in one’s mind. It is a great matter of concern which leaves even the largest of businesses with no confidence to execute their businesses in full swing in the alienated market.
Easy onboarding & Multiple Stakeholders
Companies want more business and more business means numerous entities onboard with the company. Flooring a client with all the business proceedings takes lesser time than setting up a payment channel with them. This is a complex process which significantly needs to be addressed. When a company gets more people on board, several operations and business initiatives transform into a multi-stakeholder affair. It requires a lot of his communication and complete synchronization of details.
Proof of Work, Compliance
Verification of transactions and authentication of receipts is another hurdle that is yet to be conquered by the conventional finance system. In simple words, there are several stories of breach of trust and forged credentials. There has to be a foolproof confirmation on all the intimations and transactions which are happening over Distributed Ledger Technologies (DLTs).
Any business that is presently harnessing stellar growth and business stability in compliance with the trend has undoubtedly invested in the technology infrastructure with a clear futuristic approach in the past. Companies like R3 and technologies like blockchain are the most significant examples with R3CEV consortium.
What do Distributed Ledger Technologies (DLTs) offer for the future of banks and financial organizations?
Convenient Identity Management
Whenever we walk up to a bank or wealth management company and avail their products or services, there is a lot of hassle involving the KYC and document verification. Precious time is wasted, and there is a big deal in rendering of services or reaching the final point where a customer starts using the product. It certainly irritates the customer and also makes companies lose on future business. Quality driven blockchain-based product development is helping organizations of all class reach a higher level of trust and efficiently manage their work.
Innovation in Share Trading
General stock markets, equities, and F&O have a critical factor of right timing while executing orders. In the present day, most of the market enthusiast who has maintained a portfolio consider it as a hassle. They are not able to trade on the exact rates as they see on the screen. There is a variable time lag in updating the prices and changing trends. Banks are continuously working withinnovative blockchain-based product companies to enhance the customer experience for their premium, and a high net worth individual.
More payment channels and easier remittances
Blockchains are in a favorable position to change the scenario of cross-border payments forever by 2020. However, there are numerous other innovations like UPI, and mobile-based payments which are leading the baton led blockchains. They have the potential to provide a broad spectrum of changes for payment channels. It includes services for businesses and individuals as well. One may not be surprised if he finds a blockchain-based product available in the market for general use branded with the trust of any tech giant.
On the final note
One of the most common mistakes which a layman does while reading and surfing about the blockchains is that he, knowingly or unknowingly considers cryptocurrencies and blockchains to be interchangeable. However, it is far from reality. The impact created by Blockchains in Banking, Financial Services is undebatable under the likes of Smart Contracts and their use. But, there are numerous European, North American and Asian countries which have shown interpretive signs of scrutinizing the credibility of cryptocurrencies. It doesn’t mean that they are directly or indirectly questioning the use of Distributed Ledger Technologies (DLTs).
The mostly growing numbers and figures of blockchain business can be expected to increase manifolds once these clouds of confusion and lack of information shed off. Rest all depends on how the Blockchain Technology ride the curve of maturity for sustainable, potentially demonstrated epitomes of performance, problem-solving and most important of all, efficiency.
WHY 6 OUT OF 7 AEROSPACE AND DEFENSE COMPANIES ARE HEADING THEIR WAY TOWARDS BLOCKCHAIN?
Introduction
Blockchain has been touted as Incorruptible, Secure, Auditable and Decentralized digital ledger for storing data. Every transaction is validated by all the members (called nodes) after which they get confirmed and grouped in a block of data. Every new block of data become a chain of consecutive data that can be traced back to the original transaction.
Blockchain technology is still in a growing stage. Aerospace & Defense (A&D) companies can make a systematic approach to demonstrate the business value of Blockchain and set milestones in their digital approach. According to a recent report by Accenture, 6 out of 7 Aerospace/Defense are expecting to integrate Blockchain in their systems by 2021.
Why is Blockchain Relevant for Aerospace and Defense Industry?
Aerospace and Defense companies are already using multiple technologies, from ERP to PLM, to custom solutions, the list is huge. These technologies aim to reduce operational efficiencies and improve quality. Even after their implementation, challenges are still persistent in this sector that includes:-
- Management of enterprises beyond tier one supplier.
- Delivery of new value-added services in the aftermarket.
- While handling cost at the same time.
The Blockchain is meant to surpass these limitations and can complement prevailing technology investments.
Features of the Blockchain suits enduring needs of the A&D industry, and therefore, Blockchain can prove to be valuable. Below are the characteristics of Blockchain that can fulfill the A&D industry needs:
Immutability
Aerospace and Defense industry deals with both private and public sector clients, involving huge transactions which can’t be compromised at any cost. These industries possess a need for tracking and inspecting transactions through different operational and supply chain partners. The Blockchain is Immutable, which means its data cannot be altered without the authentication of all the stakeholders involved. It acts as a single source of truth for all the nodes (stakeholders).
Auditability
Auditing is an imperative part of any organization, as it helps companies to monitor their data and determine the loopholes in their organization. Aerospace and Defense industry is no exception. It is also looking for ways to promote ownership and accountability. Blockchain can deliver value to the business by providing real-time tracking and tracing. It creates an unfailing and accurate audit trail that provides transparency by validating each and every data modification.
Cost Efficiency
When Implementing new technology, every company looks out at their budget and then make necessary decisions. The A&D industry being dependent on their existing technology needs something that can expand its proficiencies without compromising current technology investments. Blockchain can reduce cost by eliminating the need for intermediaries and by cutting down operational costs involved in settlements. It can easily supplement the present technology, adding an extra security layer on it.
Decentralization
Aerospace and Defense companies often face a challenge in managing supply chain reflectiveness and transposition across all the levels of the supply chain. Blockchain being a decentralized digital ledger provides the purest, most validated and comprehensive information possible. Assets are controlled and validated by their owners through a consent-based mechanism, and not by some third-party curators.
Security
Providing data security to the entire extended enterprise is a challenge for the Aerospace & Defense Industry. Through cryptographic encryption and hashing, Blockchain makes data secure, even when it is being transferred from one place to another. There is so much of computing power required for hacking a Blockchain that it becomes economically illogical for a hacker to steal any information since that much computing power can only be bought with a lot of money.
How Can Blockchain be Utilized in the Aerospace and Defense Industry?
Supply Chain Tracking & Configuration Mapping
Blockchain can help in eliminating the risk of fake data; it validates the authenticity of the information to create a secure and unchallengeable chain of data. It can track and deliver reliable aircraft configuration data during the course of the supply chain. The configuration data of airlines, aircraft constructors, and maintenance providers, is stored in their individual systems and they hardly tally their data with other party’s data.
It’s really important to know about the actual configuration of an in-service aircraft, and Blockchain provides a way where Aerospace and Defense companies can securely share, capture and validate data from a single source.
Manage Privileges and Rights for Software, Services, and Warranty.
At times, it becomes difficult to confirm the rights of employees, partners, and customers to use software, services, or avail warranty. Blockchain can enable disseminated digital rights management for technical publications and engineering data. Since it is a transparent network; the information is known to all the authenticated users, eliminating any chances of discrepancies and data mismatches.
Maintenance and Overhauling
Various parts of an aircraft have different maintenance cycles. They need to be sent to workshops for service work. These workshops offer different services, turn-around time, and prices. Managing between all these factors and bring out the best alternative manually is a tedious task.
Pre-defined Smart Contracts can perform these tasks autonomously reducing the cost of maintenance, downtime, and increase operational efficiencies. This can possibly cut-down the chances of aircraft failures in the future.
Certification of People and Parts
Allowing only authentic parts to enter the system and authentic people to use the system is even more important in the Aerospace and Defense Industry. Hence, their certification becomes an absolute necessity. Blockchain can be utilized to attach attributes to the digital form of the assets and certify them, publishing specific certificates for the whole network to access.
Conclusion
Blockchain is a new technology which is full of promises, but they are still not proven in large-scale deployments. Before exploring the promises made by Blockchain, Aerospace and Defense companies should follow an organized methodology intended to determine the organization’s business value. This will help them in identifying the capabilities of Blockchain to meet their specific requirement.
From supply chain to configuration management, Blockchain is sure to help Aerospace and Defense companies to beat their challenges and open doors to new opportunities for collaboration.
STREAMLINING THE 3 STREAMS OPERATIONS – BLOCKCHAIN FOR OIL AND GAS INDUSTRY
Introduction
The Oil & Gas Industry is the backbone of ‘n’ number of companies, governments, providers and regulatory bodies. There exist endless chances for transparency, optimization, and efficiency. Today’s scenario reflects a whole new picture where proprietary databases and infrastructures do not allow proper coordination. This has a serious impact on performance.
Could Blockchain act as a savior?
Let’s see some of the real-life applications.
Cheap & Secure Commodity Trading and Tracking
The Oil and Gas industry is a global business. Crude oil is quintessential for the globally-traded economy today. It is a raw source which suffices the world’s energy needs. This includes Gasoline, Petrochemicals, and Diesel, etc. The usage of the proprietary system has been increasing to manage, track and record data for performing these trades. The industry makes use of a number of siloed and complicated ledgers to keep track of the commodity trading.
These centralized systems are quite complicated and rather expensive to maintain. To add coal to the fire, these systems are manipulative, hackable, and can be corrupted. Commodity trading is always recognized as a razor-thin business, in which optimization of any form is considered to be a lucky star for the companies.
The Blockchain technology deploys a decentralized ledger. This is the core concept of technology. Be it tracking or recording transactions of any kind (trading or money transfers), Blockchain offers a solution that is cheaper and secured. It is known for better efficiency compared to other legacy systems. Nowadays, the proprietary systems require a secured, quick and tamper-resistance solution that has to be programmed additionally into the software. Blockchain has this feature inbuilt.
Blockchain can reduce the cost of labor, security and target other such concerns.
The story of the 3 Streams of Operations in Oil and Gas Industry
The operations of the Oil and Gas industry can be segregated into 3 categories:
- Upstream
- Midstream
- Downstream
Upstream refers to all the operations that are involved in resource extraction as well as resource exploration.
Midstream comprises of those operations that are involved in storing and transporting resources.
Downstream operations are those related to refining that eventually lead to the supply of multiple products to the end users such as gas stations, domestic users, etc.
The journey of oil drops can include dozens of separate entities such as companies dealing with a lot of legal agreements and documents.
At present, due to manual handling of data, contracts, dispute reconciliation, and inability to track & trace the supply chain among many others result in inefficiencies. The immense amount of oil that goes waste due to oil spillage or shipwrecks because of mismanagement of resources is another major issue.
Blockchain technology’s ability to track and record all the supply chains can reduce oil wastage through optimum utilization and efficient management of resources. Implementing smart contracts such as offered by Ethereum, could help various parties to manage the Oil & Gas production. Let us see how Blockchain can help Upstream, Downstream and Midstream operations.
Blockchain for Upstream Operations
The Blockchain applications for upstream operations are many since they involve multiple stakeholders. The companies performing exploratory drills, contract companies which supply oilfield and oil rig employees all come under this category. Data management and secure transmission of data are the vital reasons for success. The performance-based contracts and reconciliation options are the two key factors affecting the performance of Upstream Oil and Gas processes.
The inefficiency in coordination has been a trouble for many businesses across the world. Labor charges, lengthy processes, different attestation steps are required for these processes to complete. By joining a Blockchain network, these parties can get attestation done digitally and securely on the network itself, eliminating physical paperwork and wastage of time. The transaction process and the labor details could also be stored and shared using Blockchain.
The performance-based contracts can be made in the form of smart contracts, coded to get autonomously executed based on pre-defined terms and conditions of the transaction, such as transfer of payments on timely delivery. Blockchain can completely eliminate the need for reconciliation since it is a single source of truth and the facts & figures get automatically reconciled by the system.
Blockchain for Midstream Operations
Midstream involves operations related to transportation. The trucks, pipeline, barges, and tankers are used for this purpose. Good coordination is an absolute necessity. The inspection of pipelines and the cross-company checks are some of the examples of midstream operations.
By streamlining the disorganized data and the employee details on the Blockchain, a clear and transparent way of dealing with regulators and parent companies can be allowed. The employee’s details such as company name, licenses, training, and expertise, inspecting each section can be recorded with a time-stamp and location data, increasing accountability.
Blockchain for Downstream Operations
Refining of oil and gas products is the final process. The jet fuel, diesel, gasoline – all in the purified form, from raw material to consumer products, are sent to the local traders. Smart Contracts can be deployed to reduce the process time and improve efficiency. The parent companies can enable Blockchain based reward program for their downstream companies and build loyalty.
Conclusion
The blockchain is a potential technology which can help the O&G industry to improve efficiency, security, and loyalty as well. A few O&G companies are trying to integrate Blockchain owing to its lower operational costs, better resource allocation, and higher profitability for the end-user. Companies like BP and Royal Dutch Shell are developing a consortium blockchain-based digital platform for energy commodities trading that is expected to be launched by end-2018. Other members of the consortium include Norwegian oil firm Statoil, trading houses Gunvor, Koch Supply & Trading, and Mercuria.
HOW CAN BLOCKCHAIN ENSURE DATA REPRODUCIBILITY AND TRANSPARENCY IN CLINICAL TRIALS?
Introduction
Data is core to everything digital. This makes data security of utmost importance, especially when human lives depend on it. And today, an immutable shared ledger powered by cryptography that enables digital agreements called smart contracts is possibly the best Data security technology available for the protection of digital data. Here, we are talking about Blockchain Technology and its applications in Clinical Trials. Data Reproducibility and Transparency are the two major areas where Blockchain implementation can help.
Problems with the Current Clinical Trials Process
The success of pharmaceutical companies depends on their newly researched drugs successfully passing the clinical trial process. These brands put heaps of money in the research process of the drugs and are under immense pressure to make sure the drug clears the trials. It is because of this reason, some of them try to influence the methodology followed by the clinical trial companies to produce results in their favor.
Rectifying the methodology issues is one of the great challenges in clinical researches. Often, lack of reproducibility related to a wide range of scientific misconduct aspects, from errors to intentional falsification of data, compromises the outcomes of a clinical study and weakens research quality. The process involves taking consent from the patients, recording them, and then sharing with investigators, review committee, and sponsors. Currently, the methods available to perform these tasks are prone to errors and alternations.
How Can Blockchain Help?
The main reason behind the lack of reproducibility is the inability to store the data inputs in terms of
- Sequence
- Parameters
- State of the subject/environment/drug
- Quantity of the test subjects
- Standardize format
so that it will produce the desired output always, given the same data inputs. Blockchain can do wonders in this regard. It can record the whole process, by preserving every minute details in a step-by-step manner with a timestamp on an immutable shared ledger. The data integrity is taken care by cryptographic validation to eliminate any falsification of data.
The complete study protocol including the probable test outcomes and the planned analysis is saved in the form of a text file and fed into an algorithm known as SHA256. These can be only viewed by the authorized users that include patients, investigators, reviewing authority, and investors. After each of them gives their consent, their proof of consent to the study protocol and the protocol itself is recorded immutably on the Blockchain in the form of smart contracts.
This ensures that all the probable test outcomes have been accounted for. In such a scenario, it becomes compulsory for the research report to have all the information and any missing links/alterations can be easily pointed out. Since the results can’t be altered, the clinical trials organizations are thus bounded to produce complete results about the probable test outcomes and the planned analysis. This is how Blockchain can impart the much-needed transparency to the whole clinical trial process.
Current Status of Blockchain Adoption in Life Sciences
According to a survey done by Pistoia Alliance, 60% of pharmaceutical/life science companies are either using or experimenting with Blockchain in 2018. Out of the companies surveyed, 55% think that the lack of skilled Blockchain professional is one of the major barriers to adoption. Not only life sciences, but there are also many independent Blockchain-based projects being developed for recording and sharing medical records.
Conclusion
Blockchain technology has opened up new doors in clinical research by structuring a more transparent, auditable process. It can secure the clinical trial integrity and can result in the community-driven Internet of research data, gathering researchers and patient communities in a decentralized eco-system, that can lead to a more secure and transparent clinical research analysis.
The Journey Begins
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