Big-box retail giant Walmart has joined MediLedger, a consortium building a blockchain for tracking the provenance of pharmaceuticals.
A spokeswoman for the Bentonville, Arkansas-based company confirmed Walmart’s participation to CoinDesk but had no further comment.
The move representsa deepening of Walmart’s involvement with blockchain technology. Separately, the retailer is a key participant in IBM’s Food Trust, a system for tracking fresh produce through the supply chain that’s built on the Hyperledger Fabric platform.
Walmart has insisted that its suppliers of leafy greens integrate the IBM blockchain, and it should bring similar supply-chain clout to MediLedger, whose members already include pharmaceutical manufacturers such as Pfizer and the three largest pharmaceutical wholesalers, McKesson, AmerisourceBergen, and Cardinal Health.
“Health and wellness,” a category that includes pharmacy and over-the-counter drugs, accounted for $35 billion of Walmart’s U.S. sales in the fiscal year ended Jan. 31, or 10% of the total, according to the company’s annual report.
Unlike Food Trust, MediLedger uses an enterprise version of the ethereum blockchain, built with a modified version of the Parity client and a consensus mechanism called proof of authority. The consortium is spearheaded by San Francisco-based blockchain firm Chronicled, which closed a $16 million funding round earlier this year.
Walmart joins as MediLedger prepares to kick off a pilot project with the U.S. Food and Drug Administration (FDA) in early June. The agency is testing various approaches to creating an interoperable, digitized system for tracking and verifying prescription drugs, something Congress has mandated it deliver by 2023.
Eric Garvin, co-lead of MediLedger, told CoinDesk:
“The pilots only really make sense if you are working with a group of collaborators.”
MediLedger initially focused on the verification of drugs that are returned to be resold – a sliver of the pharma market, but one that’s still worth over $6 billion. Legislation to help prevent fraudulent products being resold comes into effect in November of this year.
Now the expanded group will start work on the more broad-ranging tracking of all pharma products which involves interoperable data and packaging serialization. Read more