The Legal Entity Identifier (LEI) has become a critical component of a new healthcare service blockchain platform, created through collaboration between PharmaLedger and GLEIF. PharmaLedger is a project sponsored by the Innovative Medicines Initiative (IMI) and the European Federation of Pharmaceutical Industries and Associations (EFPIA) aimed at bringing a scalable blockchain platform specifically for supply chain for healthcare products, health data exchange in the marketplace and clinical trials. They serve as a sole source of truth for the healthcare ecosystem and governance, adoption by the stakeholders of the ecosystem, compliance with existent and emerging standards, and end-to-end connectivity and interoperability.
The LEI is an early-stage example of how a platform can benefit the entire healthcare sector. Regulation compliance will help to prioritise safety, and make sure patients get quality products through the right supply chain process. GLEIF has become the guardian of a decentralised system capable of establishing digital trust between legal entities using blockchain technology, as a lack of transparency, coordination, and trust poses big challenges. Blockchain enables a network-managed database. The full content of this database is stored in every computer of the network, which can be public, private, or hybrid. This model of data distribution is the first feature and benefit of using blockchain security. To hack and tamper with records would require hacking multiple servers and computers at the same time, which makes it highly unlikely and very costly. Blockchain is designed to group data into blocks and assign them to a permanent sequence of records. To do that, every block of data carries the cryptographic signature of the previous block, organising the database in a “chain of blocks”. This distinct way of recording data enables full traceability of records. It could also provide solutions by reducing the costs of healthcare, drug development processes, and time of delivery of the drugs to patients with unmet needs.