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# Pilot Backs Blockchain for Drug Supply Security
- URL: https://www.fdaweb.com/pilot-backs-blockchain-for-drug-supply-security/
- Published: 2020-02-21T12:00:00.000Z
- Updated: 2026-09-14T16:03:59.000Z
- Author: David McFarland
- Tags: Drugs, #legacy-id-D5146148

A drug supply chain security pilot program, which was approved by FDA in 2019, is endorsing blockchain technology to meet Drug Supply Chain and Security Act (DSCSA) requirements for an interoperable, confidential change-of-ownership system for the U.S. pharmaceutical supply chain. Last year, FDA began accepting pilot project proposals to identify solutions for meeting DSCSA requirements that go in effect in 2023\. DSCSA was passed into law to improve pharmaceutical supply chain security and to help eliminate counterfeit products.

Blockchain is the digital ledger technology that underpins digital currencies like Bitcoin. The technology allows digital information to be distributed, but not copied. The information is constantly reconciled into the database, which is stored in multiple locations and updated instantly. This means the records are public and verifiable, and since there is no central location, it is difficult to hack because the information exists simultaneously in millions of places.

The pilot program, which is called the MediLedger Project, involves a working group of 24 pharmaceutical manufacturers, distributors, retail chains, and logistics partners. FDA approved the pilot to evaluate blockchain technology, like the MediLedger Network, for drug track and trace.

For drug supply chain security, the pilot proposed a combination of (**a**) business rules and standards that govern how data is shared and (**b**) a blockchain-based network capable of enforcing those standards. “The core function of the network is to validate the authenticity of drug identifiers and the provenance of saleable units throughout the supply chain,” the pilot organizers said in a [release](http://www.marketwatch.com/story/leaders-from-24-companies-in-the-us-pharmaceutical-supply-chain-collaborate-to-submit-the-mediledger-dscsa-pilot-project-final-report-to-the-fda-proposing-blockchain-for-an-interoperable-track-and-trace-system-for-us-prescription-drugs-2020-02-21?ref=fdaweb.com). “This can all be done without any proprietary data being shared openly on the blockchain or ever leaving a company’s control.”

Under the pilot, proprietary data can be exchanged directly with necessary trading partners, and what is posted on the blockchain are “cryptographic proofs, also known as zero knowledge proofs, of those exchanges that ensure they are valid and follow the business rules and data standards,” they said. “This allows all trading partners to operate on the same up-to-date data and that all interactions throughout the supply chain are based on trust.”

To see the final MediLedger Project FDA Pilot Report, go to [https://www.mediledger.com/fda-pilot-project](https://c212.net/c/link/?t=0&l=en&o=2725385-1&h=3882605397&u=https%3A%2F%2Fwww.mediledger.com%2Ffda-pilot-project&a=https%3A%2F%2Fwww.mediledger.com%2Ffda-pilot-project&ref=fdaweb.com).