Blockchain-Enabled Trade Finance Framework for Secure Drug Supply Chain Transactions

Dr. K. Pushpa Latha ¹, Mr. M.N. Mallikarjuna Reddy ², Dr. B. Rajalingam ³, Malleswari Akurati ⁴, Dr. G. Swapna ⁵, Bakkala Santha Kumar ⁶

¹Associate Professor, School of Management and Technology, Malla Reddy (MR) Deemed to be University, Hyderabad, Telangana, India.
Email: pushpa.kamineni@gmail.com

²Assistant Professor, Department of Computer Science and Engineering, SVR Engineering College, Nandyal, Andhra Pradesh, India.
ORCID: 0000-0003-1447-2626
Email: mallikarjuna.cse@svrec.ac.in

³Associate Professor, Department of CSE, School of Computing, Veltech Rangarajan Dr. Sagunthala R&D Institute of Science and Technology, Avadi, Chennai, Tamil Nadu, India.
Email: rajalingam35@gmail.com

⁴Senior Assistant Professor, Department of ECE, CVR College of Engineering, Telangana, India.
Email: malli.akurati@gmail.com

⁵Assistant Professor, Department of Pharmaceutics, Apollo Institute of Pharmaceutical Sciences, The Apollo University, Chittoor, Andhra Pradesh, India.
Email: swapnagv111@gmail.com

⁶Department of Computer Science and Engineering, Koneru Lakshmaiah Education Foundation, Vaddeswaram, Guntur, Andhra Pradesh, India.
Email: santhakumar.bakkala@gmail.com

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ABSTRACT

The pharmaceutical supply chain is a network of various stakeholders such as manufacturers, distributors, logistics providers, pharmacies, and regulatory authorities. It is essential to ensure transparency, security, and trust among them to prevent counterfeit drugs, data manipulation, and financial fraud. Drug supply chains using traditional trade finance processes are heavily dependent on paper-based documentation and centralized systems. These practices often cause delays, result in high transaction costs, and reduce traceability.

This article introduces a Trade Finance Framework Powered by Blockchain for enhancing security in drug supply chain transactions. The framework utilizes blockchain technology to offer decentralized, tamper-proof record keeping and real-time transaction verification. Smart contracts facilitate the automation of trade finance procedures such as letter of credit validation, payment release, and compliance verification, thus cutting down on processing time and human intervention. A distributed ledger keeps a record of each transaction, which is accessible to all and cannot be altered, all while hiding sensitive data through encryption mechanisms.

The proposed system bolsters mutual trust among the different parties involved, increases the ability to trace pharmaceutical products, decreases the risks of fraud, and makes regulatory compliance easier. By combining blockchain with trade finance, the framework enables secure, effective, and transparent drug supply chain management, thus leading to higher patient safety and better financial accountability.

Keywords: Blockchain, Trade Finance, Drug Supply Chain, Smart Contracts, Secure Transactions, Distributed Ledger Technology, Transparency, Pharmaceutical Logistics.

How to cite this article: Latha KP, Reddy MNM, Rajalingam B, Akurati M, Swapna G, Kumar BS. Blockchain-enabled trade finance framework for secure drug supply chain transactions. Int J Drug Deliv Technol. 2026;16(3s): 884-889; DOI: 10.25258/ijddt.16.3s.108

Source of support: Nil.

Conflict of interest: None