Connect with us

Blockchain

SAP Pharma Case Study and Interview

A deeper look at a leading enterprise blockchain project A few months ago, we published the details of ten enterprise blockchain networks which are built on MultiChain and running in live production. One of these solutions, made for the pharmaceutical industry, is of particular interest – not only because of its scale, but also because… Read more »

Published

on

A deeper look at a leading enterprise blockchain project

A few months ago, we published the details of ten enterprise blockchain networks which are built on MultiChain and running in live production. One of these solutions, made for the pharmaceutical industry, is of particular interest – not only because of its scale, but also because it was built by SAP, the third largest enterprise software vendor in the world.

SAP’s core business runs on centralized systems, so why are they exploring decentralization and blockchains? You’ll find the answers below, in two parts. First, a detailed case study of the pharmaceutical project, written together with SAP, which explains the problem and why a blockchain solution was chosen. And second, an interview with Raimund Gross, the Innovation Manager who played a large role in driving SAP’s work with blockchains.

We hope you enjoy the read.

Outline – SAP/MultiChain Case Study – SAP Information Collaboration Hub for Life Sciences, option for U.S. supply chain

 

Securing the drug supply chain saleable returns in the US: A 7-billion-dollar challenge

To fight drug counterfeiting, government agencies globally have introduced legislation requiring the unique identification of products on a unit level and in some markets verification or even full track and trace. While the track and trace process involves all supply chain stakeholders, the responsibility to perform the verification is assigned to specific participants depending on local regulation.

By November 2019 US drug wholesalers will need to verify prescription drug returns intended for resale that are received from their customers such as pharmacies and hospitals. This requirement is part of the US Drug Supply Chain Security Act (DSCSA), for “Saleable Returns Verification” using pack ID (consisting of GTIN, batch, expiration date and serial number) by November 2019. This initiative will protect returned drugs worth an estimated USD 7 billion per year in the US alone.

The DSCSA requirements will extend to a “fully interoperable system to support tracking and tracing along the entire supply chain” by 2023 and so a solution must be found which will support these future requirements. This means recording over 1.5bn product packs every year and handling 100,000+ verification transactions daily, without performance degradation. In addition, the proposed solution should minimize the number of different integrations and counterparties for each wholesaler and pharmaceutical company to interface with.

In theory verification and tracking could be performed by direct querying between the supply chain participants. However, this would introduce fragility since each company would rely on every other to answer queries in real-time. In addition, it is not viable to use a regular centralized database since there is no central party in the US to manage that database. This situation in the US contrasts with the EU, which established the European Medicines Verification Organization (EMVO) to act as the central organization for aggregating product pack data and enabling verification at the point of dispensing, as required by the EU FMD (Falsified Medicines Directive).

 

A consortium lead decentralized ledger solution from SAP

To meet this challenge, SAP has partnered with leading pharmaceutical companies including Merck, GlaxoSmithKline, AmerisourceBergen and Boehringer Ingelheim to create a blockchain-based decentralized ledger solution.

To create, manage and communicate traceability data, SAP offers a solution portfolio consisting of SAP Advanced Track and Trace for Pharmaceuticals and SAP Information Collaboration Hub for Life Sciences. The solution, designed to support saleable returns verification as described above, uses those products and in addition leverages a blockchain to provide data distribution with an additional layer of security and integrity checking.

The pharmaceutical manufacturer creates serialization data, a product ID (GTIN), batch or lot-ID including expiration date and a randomized unique identifier for each product unit package. This data is printed on the package in a barcode and human readable format. The hash of the barcode string for every serialized unit is then created and written on the blockchain.

Every person along the supply chain including a patient and a healthcare professional at a pharmacy or at a hospital can easily scan the barcode on the package before the product is sold or administered. A mobile application decodes the barcode, creates a hash of the barcode contents and verifies the existence of that exact hash on the blockchain via the organization’s node or the node of a service provider. In the particular case of saleable returns verification, a warehouse worker at a US wholesaler can verify a returned saleable product, thus complying with US regulations.

“Blockchain is driving a new breed of enterprise applications that could drastically improve cooperation for wholesale distribution,” said Jeffery Denton, senior director, Global Secure Supply Chain, AmerisourceBergen Corporation. “The blockchain-based solution from SAP provides the best opportunity to fully satisfy our need to be interoperable with our trading partners and their solutions as well as to remain compliant with the U.S. DSCSA.”

SAP has made this solution available for use by the entire pharmaceutical industry and is in discussions with additional leading pharmaceutical companies who intend to join shortly.

“This blockchain product supports the industry’s need for an immutable and shared ledger, avoiding many complex integrations,” said Dr. Oliver Nuernberg, chief product owner, SAP for Life Sciences solution portfolio, SAP SE. “With this product we are offering a scalable and secure solution to pharmaceutical manufacturers and U.S. wholesalers to comply with the upcoming regulatory requirements for verification.”

SAP Pharma Blockchain Diagram

SAP Information Collaboration Hub for Life Sciences has now launched based on MultiChain

To deliver SAP Information Collaboration Hub for Life Sciences, option for U.S. supply chain, SAP used MultiChain, the lightweight and scalable blockchain platform developed by Coin Sciences. MultiChain comfortably supports the required throughput of 116 transactions per second and maintains stable performance while adding up to 5 GB of data per day. The solution underwent multiple stages of testing and deployment while being built and is now live with initial consortium members with others in the process of onboarding.

“MultiChain is proud to be supporting the SAP Advanced Track and Trace for Pharmaceuticals initiative with our mature platform for building blockchain applications.” said Dr. Gideon Greenspan, Founder and CEO of MultiChain. “This SAP solution leverages many of the advantages of blockchains in terms of security and decentralization, while enjoying MultiChain’s stability, customizability and scalability.”

“At SAP we are extending business solutions with MultiChain blockchain functionality via our SAP Cloud Platform offering.” said Torsten Zube, Head of the SAP Innovation Center Network. Furthermore, “We strategically decided that MultiChain should be part of our offering due to its proven, scalable and mature distributed ledger technology addressing enterprise needs. Functionality such as Smart Filters and off-chain data is what we see as particularly relevant for enterprise scenarios going forward.”

Interview with Raimund Gross, Innovation Manager at SAP

1. Could you tell me about SAP’s general perspective on how blockchain technology can contribute to the world of enterprise software?

The core idea of blockchain is collaboration based on shared data ownership, governance and operations. The major difference from centralized system architectures is that peers, collaborating in a network, can continue using their own systems and technology stack without the need to integrate them in the classical way. Instead, blockchain provides a shared data layer that allows these systems to interoperate on top and acts as the single truth.

As a result, the network has no single authority, which owns the data or controls the systems. The decentralization of the ledger means a decentralization of power. No single participant can decide to prohibit access or shut-down the infrastructure. This reduces control of intermediaries in many multi-party scenarios. Nevertheless, you would want to ensure transactional consistency across companies.

In that I see ERP systems relevant for orchestrating company internal processes and transactions. This provides structure which is an essential foundation for the provisioning and maintenance of accurate business data. And blockchain helps to ensure that consistency can be maintained across multiple participants.

2. Traditionally SAP has made its money from centralized systems, whether they are hosted on premise or in the cloud. Does this create a tension with blockchains, which are designed for decentralization?

We help our customers excel in their day-to-day tactics and develop strategies that will push their business forward. So far, these strategies and tactics are mostly reliant on central ledger technology. With blockchain – the emergence of distributed ledger technology – we see a future where we can use our strength in optimizing for central ledgers in a world that is more federated and based on distributed ledgers. Our experience can apply to optimizing processes for single companies as well as in an inter-company scenario.

Therefore, Blockchain is an opportunity to extend our existing market and scenario coverage. We believe that the basic rules of business, as well as our deep domain knowledge, will persist over technological changes that occur. Thus, we can benefit and help to develop new technologies because we can apply our strength to new areas.

3. What is the SAP Cloud Platform Blockchain Service and why would someone use it?

SAP’s blockchain offering follows our strategy to drive the Intelligent Enterprise by providing a cloud-based environment for blockchain services and full-fledged blockchain-based solutions.

We enable customers, partners, and developers to use blockchain immediately – in existing solutions or new applications. All that without the need to understand blockchain mechanics in-detail. You can say we make it easy to consume and integrate.

We infuse SAP applications with blockchain technology wherever it creates added value and we build new solutions to solve emerging business challenges. For example, we help our customers comply with US regulations for meds and fight counterfeit drugs with our blockchain-powered product Information Collaboration Hub for Life Sciences.

We also enable new network-based business models by bringing together participants in a co-innovation eco-system to jointly work on other cross-company scenarios, where blockchain can be a real solution to emerging challenges.

4. In terms of blockchain use cases, is SAP more focused on tokens (which represent ownership of something that can be transferred over the blockchain) or data (where the blockchain’s primary purpose is to record information for later reference)?

Our perspective is typically looking at technology from the perspective of the business problem at hand. And especially in the early days of realizing projects based on blockchain we promoted reduced complexity and lightweight technical implementation. So, our cases started with recording data to notarize information and prove data ownership.

Today we see more cases that require tokens as part of the technical realization. Just take mass balancing systems in supply chains to ensure tracing of sustainable ingredients when processing large quantities of raw products. Hence, we are exploring tokenization projects, too.

5. Let’s talk about the subject of our case study, the application built by SAP for verifying the returns of saleable drugs in the US. What motivated the choice to use a blockchain rather than another technology for this?

We clearly came from a business problem looking for a technical solution. The characteristics of the problem were:

  • Multiple data sources and multiple participants that would write information
  • Requirement to have tamper-proof data after it was initially written
  • Decentralization across multiple companies and different roles
  • No single party that would be able to provide the required service – none existing and no perspective to establish one
  • The need for distributed reads of previously stored information by a large group of different participants

Those points were a trigger to explore whether blockchain can meet those requirements. And it turned out to be just the right solution, so we moved on implementing it that way.

6. Why did SAP choose to build this application on MultiChain rather than a different blockchain platform?

To get used with a technology we wanted to minimize risk and uncertainty in our use-cases as much as we could. In these scenarios we focused on ease-of-consumption from the developer’s perspective and technology robustness to provide the required functionality.

For instance, with MultiChain we can easily validate the data string or hash that is published to blockchain. It is easily accessible and does not need execution of any on-chain application logic to find and verify the information. This significantly reduces complexity. With MultiChain’s robustness we can focus on the blockchain application challenges instead of handling technology challenges.

That said, we try to be technology-agnostic and use the best solution for the problem at hand. While other protocols might offer different advantages for specific scenarios, MultiChain turns out to be a good solution in many cases we see.

7. Apart from supply chain traceability, are blockchains relevant for any other parts of the SAP suite of enterprise applications?

Based on my experience blockchain is not specific to a single industry or line of business. Whenever you have cross-company processes that need shared data governance you should pay attention and evaluate blockchain’s fit – specifically in situations with multiple participants from different entities and a decentralized architecture.

While blockchain can reduce the need for intermediaries, we observe that many enterprises embrace the technology and explore either how blockchain can support their business model or how they can adapt their business model according to the benefits of the technology. The latter results in new solutions that would not have been possible building in a centralized way.

8. If you could improve one thing about today’s enterprise blockchain platforms (MultiChain included), what would it be?

There is a fundamental requirement for enterprise usage of software and applications. And this is interoperability. At customers there is very rarely a single application or a single technology stack in use. So, connectivity and data flow between those components are paramount.

In blockchain, we are seeing multiple stacks and technologies being developed in parallel. While this is not uncommon in the lifecycle of emerging technologies it can lead to interoperability problems once a certain maturity is reached and networks are established independently from each other. This is a huge challenge we are seeing in the overall ecosystem.

Thank you!

 

Please post any comments on LinkedIn.

 

Source: https://www.multichain.com/blog/2019/10/sap-pharma-case-study-interview/

Blockchain

U.S. Treasury Targets Stablecoins in Latest Regulatory Risk Assessment

Published

on

As regulatory pressure mounts in the U.S., policymakers are putting stablecoins at the top of their agendas.

Citing “people familiar with the matter,” Bloomberg has reported that officials are crafting a policy framework set to be released in the coming weeks. Their primary concern is ensuring that investors can reliably move money in and out of tokens, it added.

The anonymous insiders are worried that a “fire-sale run on crypto assets could threaten financial stability and that certain stablecoins could scale up dangerously fast.”

Strengthening Regulatory Efforts

The Financial Stability Oversight Council is also preparing a formal review into whether stablecoins pose an economic threat.

The officials are focusing on how stablecoin transactions are processed and settled and whether market conditions have an impact, it added. Tomicah Tillemann, global head of policy at a crypto fund run by venture capital giant Andreessen Horowitz, commented:


ADVERTISEMENT

“It is significant and very consequential that we are witnessing early steps to create a regulatory framework around digital assets. That’s a big deal.”

The report, when released, will go to the President’s Working Group on Financial Markets. The body includes key agency heads such as Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, and Securities and Exchange Commissioner Chair Gary Gensler.

In late July, Yellen called for urgency in regulating stablecoins after stating that they are not adequately supervised. Gary Gensler echoed the sentiment in early August, stating that regulators must act to protect investors from fraud.

Also, in late July, Acting Comptroller of the Currency, Michael Hsu, said regulators are looking into Tether’s commercial papers to see whether each USDT token was really backed by the equivalent of one U.S. dollar.

Tether has repeatedly issued assurances that its reserves are fully backed but has yet to produce a full independent audit.

Stablecoin Ecosystem Update

Tether remains the market leader with a current supply of 69.4 billion, according to the Tether Transparency report. This is close to the all-time high for USDT, which tapped 70 billion earlier this week.

Of that total, 36 billion or 51.8% is based on the Tron network, with 33.8 billion or 48.7% running on Ethereum. USDT supply has grown by 232% since the beginning of the year.

Rival stablecoin, USDC, from Circle currently has 29.3 billion in circulation after gaining 651% in terms of supply growth so far in 2021.

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

You Might Also Like:


PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://cryptopotato.com/u-s-treasury-targets-stablecoins-in-latest-regulatory-risk-assessment/

Continue Reading

Blockchain

Cardano, Chainlink, MATIC Price Analysis: 19 September

Published

on

Most altcoins in the market have been consolidating or recording losses over the last 24 hours. Cardano fell by 3% and inched closer to the support line of $2.20. Chainlink also depreciated by 5% and was trading closer to its three-week low price. Lastly, MATIC was seen moving closer to its one-week low price of $1.29 after registering a loss of 5% over the past day.

Cardano (ADA)

Cardano, Chainlink and MATIC Price Analysis: 19 September

ADA/USD, TradingView

Cardano lost 3% of its valuation over the last 24 hours. The altcoin was priced at $2.33. Over the last few days, ADA has been consolidating. The nearest support line for the coin stood at $2.20 and then at $1.72. 

On the four-hour 20-SMA the alt’s price was seen below it, indicating that the momentum belonged to the sellers. The Relative Strength Index was below the 50-mark. The Chaikin Money Flow also was seen below the half-line as capital inflows were low.

MACD witnessed a bearish crossover and flashed red bars on its histogram. If ADA moved on the upside, the first resistance mark stood at $2.49, toppling which it could retest $2.79. The other price ceiling stood at the multi-month high of $3.04. 

Chainlink (LINK)

Cardano, Chainlink and MATIC Price Analysis: 19 September

LINK/USD, TradingView

Chainlink was priced at $27.80 after it recorded a loss of 5% over the last 24 hours. LINK’s nearest price floor was at $27.78. Falling below which the coin could trade near its three-week low of $24.45. 

Parameters pointed towards negative price action. On the four-hour chart, LINK’s price was below the 20-SMA. This reading suggested price momentum was inclined towards the sellers. The Relative Strength Index was below the half-line.

Awesome Oscillator flashed red signal bars. MACD also displayed red bars on its histogram. On the flipside, once buying pressure revives, the altcoin could attempt to retest the $32.37 resistance mark and then revisit $35.83. 

Polygon (MATIC)

Cardano, Chainlink and MATIC Price Analysis: 19 September

MATIC/USD, TradingView

MATIC depreciated by 5% and was trading at $1.39. The altcoin’s immediate support line was at $1.29 which also is the one-week low price level. The other price floor was at its over a month-long low price point of $1.07. 

Bollinger Bands converged, indicating that price volatility would remain low over the upcoming trading sessions. MACD was bearish with red bars on its histogram. The Relative Strength Index was also seen below the half-line. 

MATIC’s movement on the upside could mean that the coin would meet with its first resistance at $1.42 and then at $1.54. Toppling over these levels, the coin could revisit its multi-month high of $1.76.

Where to Invest?

Subscribe to our newsletter

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://ambcrypto.com/cardano-chainlink-matic-price-analysis-19-september

Continue Reading

Blockchain

The Crypto Mining Fight in China Is Not Over

Published

on

It looks like China is still not done clamping down on the crypto mining space. Another region known as the Hebei province has agreed to comply with Beijing’s ruling that all crypto mining should be omitted from China’s workforce. The province is now claiming that the practice is illegal and must end within its borders no later than September 30.

China Is Still Kicking Miners Out

China shocked the world not too long ago when it decided that all crypto mining should cease. The idea was that energy used for crypto mining purposes was hazardous to the planet, and that it was setting humans on the wrong path. Thus, regulators stated that it was time to bring things to an official end.

What was most surprising about the ruling is that the country, at the time, was home to nearly 75 percent of the world’s total crypto mining operations. Thus, it stood to lose a lot of money and tax revenue by initiating the clampdown. In addition, the country is home to two of the world’s biggest developers and distributors of bitcoin mining equipment in Bitmain and Canaan Creative.

Nevertheless, China has moved forward in its decision. Many mining operators were forced to shut down their businesses and move elsewhere, and quite a few have popped up in countries such as Kazakhstan and in states like Texas and Florida. Both these regions in America have stated they are open to crypto mining projects given that they can potentially lead to healthier local and state economies, and they will create jobs for interested workers.

The Hebei province issued the following statement:

Cryptocurrency mining consumes an enormous amount of energy, which is against China’s ‘carbon neutral’ goal.

The arguments against crypto mining have become rather prominent in recent months. One of the most notable stemmed from Elon Musk, the South African entrepreneur behind billion-dollar companies such as SpaceX and Tesla. He stated early in the year that he was willing to permit bitcoin payments for electric vehicles. A few weeks later, however, he rescinded this decision, claiming that miners were not utilizing their energy correctly, and he could not condone bitcoin unless carbon emissions were brought down.

Too Much Bad Energy in the Air!

Another argument came from Kevin O’Leary of “Shark Tank” fame. The billionaire investor claimed that he would no longer be purchasing any BTC mined in China given that the country was not known to utilize green energy for mining purposes. China later took this issue to heart, it seems.

Starting in October of this year, bitcoin and crypto mining in China will be completely illegal. Regulators in the nation have stated that they will keep a close eye on the mining space and will work to punish all those who disobey the rules.

Tags: china, Crypto Mining, Hebei province
Click here for Free Trial.
Source: https://www.livebitcoinnews.com/the-crypto-mining-clampdown-in-china-is-not-over/>

Continue Reading
Uncategorized4 days ago

Wicked Craniums are now Nifty Gateway!

Blockchain3 days ago

Massive NFT and Token Giveaway from Polker as Staking is Announced!

Uncategorized4 days ago

Swissquote Confirms European Expansion Plan, Focusing on Crypto

Blockchain4 days ago

Biggest Crypto Adoption Rumours: Apple, Amazon, and Walmart

Uncategorized4 days ago

Acorns Hires Former Amazon Executive as President, Hints at Crypto Options

Blockchain4 days ago

Gate.io Introduces OpenPunks, A Community-Based NFT Collection

Uncategorized4 days ago

Investor: Coinbase’s $2 billion junk bond deal shows crypto ‘supercycle’ is in place

Uncategorized4 days ago

Head of Australian Crypto Exchange Says Regulations Are Beneficial

Blockchain4 days ago

The Signal and the Noise

Uncategorized5 days ago

How to fix the Party Member Preloading error in Apex Legends

News4 days ago

Evaluating Credit Card Debt Relief Options

Uncategorized4 days ago

Nickelodeon All-Star Brawl will include DLC fighters post-launch

Uncategorized4 days ago

Bingbon Launches its Carbon Free and Afforestation Project

News3 days ago

Gods Unchained and Guild of Guardians Layer 2 Solution Immutable Raises $60 Million

Blockchain4 days ago

Public.com Inks Deal with NFL Star to Advise on Financial Literacy Programs

Blockchain1 day ago

Over 40 days after Ethereum’s EIP-1559, here’s where it stands

Blockchain4 days ago

What’s Behind Elrond (EGLD) Daily Surges?

Blockchain4 days ago

Ethereum’s Infura Launches Tool To Prevent Over-payment Of Fees

Uncategorized4 days ago

This needs to happen before Peter Schiff will buy Bitcoin (BTC)

Blockchain4 days ago

xtingles To Drop Its First ASMR NFT “Free Like A Butterfly” On September 16

Trending