Blockchain Technology FarmaTrust Will Help to Fight Medical Fraud


Published on 09 Feb. 2018
Drugs

Health Care is the international global market that operates tremendous amount of money. According to the World Health Organization data, in 2015, people spent $7.3 trillion for health care, which is 10% of the world GDP. The numbers are striking, but the big part of these funds is spent in vain. People pay 20-30% of the general expenses volume for the excessive medical diagnostics, unjustified treatment, medical fraud, and missed preventive measures.

But this is not all. Even more prominent is the problem of fake medicines. The market for counterfeit medications is $200 billion in revenue, and 30% of all drugs, sold in the developing countries, are falsification. It caused the death of around 100 thousand people in 2015 only. It is hard to evaluate the extent of the problem of fake medicines since in many cases people and governments don’t have a real possibility to find out whether a drug is counterfeited or not. Usually, it becomes clear after a person’s death, sometimes numerous deaths, or through the international cooperation. However, the recent multiple investigations, carried out during the last decade, show that the problem has become global and very urgent.

How can blockchain help to solve the main problems of Health Care?

Blockchain, being a constant, trust-free, decentralized, and distributed technology, provides the wide range of possibilities of fighting fraud, reducing operational expenses, optimizing processes, eliminating work duplication, and increasing transparency in the sphere of health care. There is a whole bunch of benefits from the integration of blockchain technology:

First, doctors will be able to inform a patient about his medical history or any other data about medical check-ups immediately. This will help to make the doctors’ work quicker and more effective, and patients will be able to avoid additional examinations.

Second, sensitive medical data can be kept and transferred in the encrypted form. The data will be available only to those users who have a relevant access level to the tracked and protected blockchain.

Third, blockchain technology can help in tracking pharmaceutical preparations via the chain of supply in the physical world thanks to the unique identifiers, which will help to eliminate the distribution of fake medicines.

The last problem – elimination of fake medicines – is a key focus of the company FarmaTrust which has addressed the blockchain technology and has complemented it by AI.

FarmaTrust and platform Zoi

FarmaTrust is a highly efficient global tracking system that allows pharmaceutical companies, governments, regulators, and publicity make sure that the drug supply chain is not affected by the fake products. The system is built with the use of distributed ledger technology, artificial intelligence, and big data analysis. It aims to provide the pharmaceutical industry with the additional possibilities to improve work processes and methods and assure more transparent supply chain. 

The platform Zoi, developed by FarmaTrust, will help to create the network of pharmaceutical brands, trusted manufacturers and suppliers, logistics and ship companies, wholesalers and distributors, as well as pharmacies and hospitals. This network will become a reliable system to guarantee that the medicines and related products are not falsified. 

The platform will fulfill the following functions:

• provide pharmaceutical companies, their suppliers, distributors, pharmacies and regulators with full tracking of medicines’ transportation, which can sufficiently reduce expenses in supply chains;

• define gaps in various stages of logistic chain that will help to compensate money losses because of drug counterfeit;

• help to protect consumers and producers by decreasing the number of fake pharmaceutical preparations with the help of their authentication in the logistic chain.

FTT Token

After analyzing all benefits and drawbacks on public and private blockchains, FarmaTrust team has chosen the platform Ethereum for their system. It is firmly convinced that the developers of the most popular smart contract platform will deal with all the drawbacks that are still present on Ethereum (in particular, too high gas price for transactions) until the time of the FarmaTrust main product release. According to the roadmap on the project’s website, they plan to launch on the Q2 of 2018.

FarmaTrust tokens will have a name FTT and will be based on the Ethereum standard ERC-20. In the future, the team plans to shift to the more modern ERC-223. These tokens will be the background of the model “Holder-utility.” FTT will work the following way:

• Every FTT token of the owner (Holder token) will generate or mint 500 utility tokens every week after its creation and issuance. The number of the released utility tokens will increase by 10% quarterly, and such growth will continue for 6.5 years.

• Every utility token is necessary for tracking the separate packages of drugs during the whole life cycle of the supply chain (there are billions of medical packages that go through the supply chain).

• Utility tokens will be “burned” at the end of the route of the particular element when it will reach its destination. The data created during the element’s trip will be recorded into blockchain and will be available to those who want to confirm the information. This way, the general volume of consumers’ tokens will decrease while the use of the system will increase. That is why the process of mintage (generation) is necessary for the sustentation of the adequate number of tokens.

• After the expiration in 6.5 years, the holder FTT will stop generating new utility tokens (but will remain valid) until the holder FTT is sold or transferred to another wallet (such scheme will avert accumulation and preserve the liquidity in the system).

• The generation of utility tokens will not exceed the specific number (91 thousand a year), no matter of the number of Holder tokens in one wallet.

• After selling or transferring Holder token, it is zeroed and starts the process of creating the utility tokens for package tracking via the supply chain from the beginning.

For the main token distribution (Token Distribution Event, TDE) that will start on the first week of March 2018, the team is going to release ordinary tokens appointed for token sale only, which afterward will be converted into FTT tokens.

One can find more information on TDE and use of the token system “Holder-utility” in the While Paper FarmaTrust and on the website https://www.farmatrust.io/.

Disclaimer: this is a sponsored story; it does not provide any recommendations on investments.


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