“Cheng Yong” is this period of time to brush screen most of the man of the moment, without him, only “I am not medicine god” hot.

In dying to Survive, Cheng Yong, a shopkeeper selling health care products, becomes rich by smuggling the Indian version of Glenin. The movie resonates with the broad audience, not only because of the archetypal character of cheng Yong, but also because of the social concern caused by the high price of drugs.

At the end of the movie, it is revealed that imported drugs have been included in the medical insurance, but many contradictions in the pharmaceutical market revealed in the movie remain unresolved. Medical market as a benefit and complexity of the uneven distribution of medical resources industry, the patients with pharmaceutical companies and regulators are still prevalent irreconcilable contradiction between demand for cheap medicine of “poor disease” patients, the need to maintain their own intellectual property rights “helpless” pharmaceutical factory, as well as the need to constantly improve regulatory policy and system, the relationship between the weigh the pros and cons of regulators. The long-term market contradiction between the three difficult to solve, so that the pharmaceutical industry to create a new “Cheng Yong” people continue to look for the point of change.

Four advantages, blockchain to “God of medicine” top?

Among those who seek for pharmaceutical reform, it is widely accepted that the cost of pharmaceutical production and transportation can be disclosed through technology empowerment, and the production process can be optimized by technology empowerment. In this era of rapid development of Internet technology, blockchain undoubtedly becomes a technology network celebrity. The openness, sharing and immutable characteristics of blockchain technology have made the technology popular in the field of medicine after the broadcast of dying to Survive.

First, blockchain consensus mechanism and high transparency of technology can solve the problem of high price of drugs. In the traditional medicine market, due to the opacity of the cost of medicine components, there are many low cost and high price drugs in the market. High drug price profits make public hospitals, which control 75% of drug sales channels, form a sales monopoly phenomenon of “supporting doctors with drugs”, but they rarely pay attention to affordable life-saving drugs. Market data show that in the process of drug trading in public hospitals, although high-priced drugs only account for 20% of the purchase rules, their sales profits can reach 70-80%, while the sales revenue of low-priced generic drugs, which account for 80% of the purchase rules, is only 23%.

The application of blockchain to the field of medicine can make use of the consensus mechanism of blockchain technology to achieve a high degree of transparency in the cost of all links from picking to raw materials and processing in the process of delivery and sales of drugs. “Blockchain + medicine” can not only enable pharmaceutical consumers to understand the production cost of drugs, realize the source of medical consumption, and ensure that pharmaceutical consumers have a basis for drugs, but also avoid the phenomenon of pharmaceutical companies and hospitals arbitrarily raising drug prices, and promote the healthy development of the pharmaceutical market.

Secondly, the tamper-proof performance of blockchain information effectively controls the r&d cost of imported drugs. The consensus mechanism of blockchain can achieve a high degree of transparency in the pharmaceutical market, while the information of blockchain can not be tampered with, which can help pharmaceutical companies record and obtain data in the process of drug research and development. At the same time, the information sharing performance of blockchain helps pharmaceutical companies to save the time for clinical trials of drugs, and selectively open the test results to reduce the cost and increase the efficiency of imported drug research and development technology, so as to effectively control the r&d cost of imported drugs.

Moreover, the decentralized and distributed encryption algorithm of blockchain can ensure the security of consumer information and create a highly secure big data environment for the pharmaceutical industry. In the process of purchasing drugs, the hospital will package the patient’s health records and other private medical information. For hospitals and other platforms selling drugs, mastering different user data in the era of big data can create more value in the market and enable the platform to continue to grow. However, for consumers, handing over their private personal data to a third-party platform will not only expose their personal information, but also fail to enjoy the market benefits due to the value of their personal data.

The decentralized mechanism of blockchain can enable consumers to self-manage their own data and reduce the risk of information disclosure in the management of patients’ private data by third-party platforms. At the same time, when consumers manage their personal information, the distributed algorithm of blockchain can assign a personal key to users, and users can make their information public according to their own needs to ensure the security of users in the process of data transaction. In addition, the traceability capability of blockchain allows consumers to be rewarded for providing valuable data and protects the “copyright” interests of the data owners. In a decentralized blockchain pharmaceutical market, the security of consumer data is guaranteed, the copyright interests of pharmaceutical companies’ intellectual property rights are protected, the cost of data storage on traditional centralized platforms is reduced, and the big data environment of the pharmaceutical market will show a fair and highly secure development trend.

Finally, the information sharing performance of blockchain helps medical enterprises achieve accurate promotion. Prospective data show that by the end of February 2018, the number of enterprises above the size of China’s pharmaceutical industry reached 7483, including the number of loss-making enterprises 1437, the loss accounted for 19.2%, the total loss of the pharmaceutical industry in the first two months of 2018 was 3.33 billion yuan. According to the market assessment of the entire pharmaceutical industry, about 300 billion DOLLARS of drugs fail to achieve the desired effect and are wasted every year, while many patients suffer from adverse side effects due to taking drugs. With the increasing demand of medical consumers for medical value, precision medicine research and development has become the market trend of pharmaceutical enterprises.

In the current pharmaceutical precision RESEARCH and development market, although pharmaceutical enterprises alleviate the value demand for drugs in the pharmaceutical market, each pharmaceutical enterprise still cannot share the big data of users, which makes the precision efficiency of enterprises in the pharmaceutical process is not high, and the development rate of specific drugs is slow. On the blockchain, patients can share their own health big data, and the super node can package and integrate the data of each patient node. Pharmaceutical companies purchase data to enable precise research and development, and once they have developed finished products, they can use blockchain sharing to market specific drugs to patients with different needs.

Building consensus with blocks, is pharmaceutical blockchain coming?

Up to now, the development of blockchain technology has gradually got rid of the 1.0 era, which started with digital currency, and moved towards the landing road of “blockchain +”. Financial, insurance and other fields have announced the successful implementation of blockchain technology, so that medicine as a circulation value hub (namely token) ushered in the dawn of the pharmaceutical industry.

Different from the insurance and financial industries, the pharmaceutical industry uses drugs as a physical value hub to circulate in the blockchain, which can better realize the real value of blockchain de-coining. However, because the pharmaceutical industry will involve the health and safety of consumers, it is necessary to reach a high degree of consensus between consumers, pharmaceutical manufacturers and pharmaceutical distributors, and reform through a variety of blockchain models to build a diversified pharmaceutical blockchain Internet network.

First, pharmaceutical enterprises build efficient and safe pharmaceutical private chain. A private chain is a blockchain in which an organization or institution controls write permissions. The write permission based on private chain is controlled by a certain organization. Adding pharmaceutical enterprises to the private chain can not only speed up the circulation of drugs to the market, but also effectively ensure the formulation safety of pharmaceutical enterprises, and prevent single node from concealing or tampering with data. At the same time, the private chain can also help pharmaceutical companies reduce transaction costs, and when a transaction goes wrong, identity authentication can be used to quickly trace the source and resolve the problem.

Second, create an open and fair medical public chain for consumers. The public chain has the characteristics of openness, fairness and low access threshold, so that everyone can enter the system at any time to obtain public data. At the same time, its completely decentralized characteristics can ensure the fairness of medical consumers in the process of medical transactions, but also can avoid the control institutions to tamper with and embezzling the transaction data in the chain. In addition, the health insurance mechanism can be used to replace the token mechanism in the public chain and encourage participants to compete for accounting to achieve supervision, so as to ensure the security of transaction data.

Third, pharmaceutical distributors build alliance chain platform that can be jointly supervised. Through the pharmaceutical alliance chain formed by pharmaceutical distributors, it can help to solve the problems of uneven distribution and low circulation efficiency in the current pharmaceutical market. Because in pharmaceutical chain alliance, each distribution agencies together to participate in the management of the whole chain alliance, and each institution as a big nodes, will run one or more small nodes, such a distributed management, can guarantee agencies of data in the system by other institutions, speaking, reading and writing and trading, so as to realize mutual regulatory agencies to see.

On the whole, when the consensus mechanism between consumers, pharmaceutical enterprises and pharmaceutical distributors has not yet been reached, a variety of blockchain models can ensure the diversification of the entire pharmaceutical blockchain. But individually, the three models of blockchain still have problems.

First of all, although the private chain can provide efficient and safe data storage scenarios for pharmaceutical enterprises, the write permission is controlled by an organization or institution, which will become the central node. The large amount of pharmaceutical factory data mastered by the central node will become the primary target of hackers and other lawless elements. At that time, a large number of pharmaceutical enterprises will face intellectual property rights infringement, enterprise survival will also become a huge problem.

Secondly, the low access threshold of the public chain allows a large number of consumers and non-consumers to query all public data on the chain, but the low threshold brings regulatory problems. The public chain directly connects to the USERS at the C end, and the supervision cost, data operation cost and big data collection cost are quite high compared with the private chain and alliance chain dominated by users at the B end.

Finally, the formation of blockchain alliance between institutions can help each institution learn from each other, solve the regulatory problems existing in the public chain, and avoid the problem of arbitrary tampering with data. However, the alliance chain not only involves enterprise security, but also user security and even enterprise management. Therefore, in terms of big data security, the alliance chain has much higher security requirements than private and public chains.

All in all, whether cheng Yong in the film, Lu Yong in the film, or the pioneers of the reform of the pharmaceutical industry, all want to help pharmaceutical consumers solve the problem of drug shortage. And a variety of block chain model can not only guarantee the whole pharmaceutical industry “block chain + medicine” diversified development, the model of different block chain at the same time, also can help the different needs of consumers to quickly find what you need medicine, save time, but also can promote the pharmaceutical industry in the form with game related businesses, accelerate the pratt & Whitney, the advent of the era of health and medicine.

Article/Liu Kuang public account, ID: Liukuang110