Blockchain is a strong technology that facilitates safe data access and sharing among parties. The management of patient data throughout the healthcare system needs to be more coordinated, and the ability to employ analytics to population-level medical data is crucial. This presents a significant challenge in the present-day healthcare sector, where patient privacy and security are of the utmost significance. In a nutshell, blockchain can benefit the healthcare industry by facilitating the safe and authorized sharing of data amongst highly dispersed healthcare systems.

Before diving into the details, it’s important to understand what blockchain is and the issues faced by the healthcare industry.

About Blockchain Technology

Blockchain technology is a transparent, unchangeable, decentralized ledger that securely records transactions. It employs cryptography to guarantee the secrecy and integrity of data. Every block in the chain has a special code that cannot be changed or removed once added. As a result, every transaction that occurs on the network is permanently documented.

Issues Faced by the Healthcare Industry

Maintaining the status quo in healthcare will undoubtedly take time and require numerous stakeholders in business, science, and supply chain. However, despite the heated discussions around the industry’s major problems, technological advancements have contributed to efficiency gains in a few subtle but significant ways. For example, providers can now send and store health records more quickly and safely thanks to new software.

However, it’s also no secret that outdated technologies and procedures weigh down a large portion of the healthcare sector. It was discovered quite some time back that a significant portion of medical imaging equipment was working on unsupported operating systems, which made businesses susceptible to assaults. In addition to financial losses for the sector, this could even compromise patient care and quality of life.

How Could Blockchain Help?

Usually, patient information is dispersed among various facilities, creating challenges in accessing it during critical moments. The integration of blockchain technology has the potential to transform the storage and transmission of health data. With its highly secure cryptographic database and shared ledger facilitating rapid and seamless communication, blockchain may be a viable solution for the healthcare industry.

Through blockchain, healthcare systems could securely store medical records, ensuring real-time updates of patient data across multiple facilities and locations. This not only enhances confidentiality but also liberates time and resources in healthcare institutions, redirecting them toward patient care and innovation rather than administrative tasks.

Furthermore, the technology can enhance the integrity of clinical trials, ensuring the credibility of outcomes and propelling advancements in medical research. By employing blockchain-based smart contracts, insurance claim processes can be automated, thereby minimizing errors and reducing administrative workload.

Blockchain and Healthcare Data Security

The current focal point of blockchain applications in healthcare revolves around safeguarding medical data, and this emphasis is entirely understandable given the paramount importance of security in the healthcare sector. Instances of data breaches, encompassing thefts of credit card details, banking information, and even health and genomic testing records, underscore the urgency of robust security measures.

Blockchain’s distinctive ability to maintain an unalterable, decentralized, and transparent ledger of all patient data positions it as an ideal technology for security applications in healthcare. Notably, while blockchain ensures transparency, it also upholds privacy by employing intricate and secure codes that shield the identities of individuals and protect the sensitivity of medical data. The decentralized nature of this technology further facilitates swift and secure sharing of information among patients, doctors, and healthcare providers.

Here are ways in which blockchain contributes to securing health data:

• Utilization of decentralized data logs that are both incorruptible and transparent.
• Implementation of complex codes to safeguard the identities and data of individuals.
• Enablement of quick transfers, reducing the vulnerability window for data exposure.

Advantages of Blockchain in the Healthcare Industry

Blockchain technology provides a wide range of advantages for the healthcare industry. Let’s take a closer look at the top benefits of blockchain.

#1 Cost Savings:

• Blockchain in healthcare streamlines operations, automating tasks like medical record sharing, drug supply chain management, and claims processing.
• Real-time visibility into drug movements prevents counterfeit products, enhancing efficiency and preventing losses.

#2 Enhanced Data Security:

• Blockchain ensures decentralized, secure storage and sharing of patient data, reducing the risk of breaches.
• The consensus mechanism minimizes fraudulent entries by requiring agreement among network participants.

#3 Seamless Patient Information Sharing:

• Blockchain’s cryptographic techniques secure patient data during transmission, empowering patients and authorized stakeholders.
• Decentralized storage eliminates the need for a central authority, providing direct control over data and enabling seamless transmission.

#4 Transparency:

• Blockchain’s decentralized ledger system brings transparency to healthcare, preventing modifications to recorded transactions.
• Patients control data access, ensuring transparency and accountability in storing and sharing critical information.

#5 Enhanced Efficiency:

• Blockchain’s secure ledger facilitates the smooth sharing of health records, reducing the need for patients to share information repeatedly.
• Tracking the movement of healthcare products through the supply chain mitigates risks and enhances efficiency through smart contracts.

#6 Efficient Claims Processing:

• Blockchain simplifies healthcare claims processing by efficiently sharing data and minimizing fraud and errors.
• Smart contracts automate claim processing, significantly reducing processing time and enhancing overall efficiency.

Challenges of Implementing Blockchain Technology

#1 Interoperability Obstacles:

• Healthcare systems often rely on outdated platforms that are challenging to integrate with blockchain technology.
• This hinders the creation of a comprehensive healthcare record system by impeding the smooth transfer of patient data across different platforms.

#2 Scalability Concerns:

• The substantial volume of healthcare data poses scalability issues for blockchain due to its decentralized structure.
• Large datasets may lead to performance problems, causing transaction delays and increased fees.

#3 Privacy and Regulatory Compliance Challenges:

• Achieving a balance between patient confidentiality and data transparency is crucial, requiring careful consideration of regulatory compliance.

#4 Need for Industry-Wide Standards:

• Collaboration among stakeholders is essential to define standardized governance models for blockchain deployment in healthcare.
• Divergent goals and interests among stakeholders create challenges in establishing uniform standards and governance across the industry.

Future of Blockchain in Healthcare

The integration of blockchain technology holds the promise of revolutionizing medical records and establishing a decentralized and secure system that prioritizes privacy, accessibility, and data integrity.

Anticipated developments include seamless interoperability across diverse systems, facilitating secure and efficient data transfer among healthcare practitioners and systems. Smart contracts are poised to automate administrative tasks, streamline processes, and reduce errors.

Beyond record-keeping, blockchain’s potential extends to research, facilitating secure data sharing for scientific progress while safeguarding patient privacy. As regulatory frameworks adapt to embrace blockchain, its integration is expected to instill confidence and openness, empowering patients with greater control over their health data.

In summary, blockchain is poised to be a pivotal force in the future of healthcare, emphasizing efficiency, transparency, and a patient-centric approach.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.