Summary
Blockchain technology has the potential to revolutionize healthcare through secure data management and improved transparency.
Integrating blockchain into healthcare faces challenges such as upfront costs, scalability, standardization, and regulatory compliance.
Decentralization and distribution of data on blockchains can facilitate the secure preparation and synchronization of patient records.
Blockchain integration can enhance operational interoperability between health service providers, enabling easy and transparent patient care.
the introduction
While blockchain technology is often associated with Bitcoin and other digital currencies, blockchain technology for storing and protecting data has also been explored in a range of different sectors. Along with philanthropy and supply chain, the healthcare sector is among the most discussed use cases. But what aspects of blockchain technology make it suitable for healthcare?
Benefits of using blockchain technology in healthcare
Some of the features that allow blockchains to act as a secure record of financial transactions also apply to the storage of medical data. Since most blockchains are designed as distributed systems that record files and protect them through the use of cryptography, it is extremely difficult for anyone to destroy or change data without obtaining the consent of all other participants in the network. Therefore, immutability is one of the features that enables the creation of indestructible databases of medical records.
Furthermore, the peer-to-peer architecture used in blockchains allows all copies of a patient record to be synchronized with each other as updates occur, even though they are stored on different computers. In fact, each network node maintains a copy of the entire blockchain, communicating regularly to ensure the data is up to date and authentic. Therefore, decentralization and data distribution are also important aspects.
It should be noted that blockchains are distributed but not always decentralized (in terms of governance). Decentralization is not a binary thing, so depending on how nodes are distributed and on the overall architecture, distributed systems may offer varying degrees of decentralization. In the healthcare context, blockchains are typically created as a private network, as opposed to public networks that are typically used as financial ledgers for digital currencies. While anyone can join and contribute to the development of the public blockchain, private versions require permission and are managed by fewer nodes.
Potential advantages of using blockchains in healthcare
The power of blockchains extends beyond finance to the important field of healthcare, from securing patient data to ensuring the authenticity of medications. Here are some potential use cases that highlight how blockchain technology will revolutionize healthcare.
1. Increased security
As mentioned, one of the most important use cases for blockchains in the healthcare sector is to leverage the technology to create a secure and unified (distributed) person-to-person database. Thanks to the immutability of blockchain chains, data corruption should no longer be a concern. Blockchain technology can be used to effectively record and track the medical data of thousands of patients.
Unlike traditional databases that rely on a central server, the use of a distributed system allows data to be exchanged with higher levels of security while reducing the administrative costs imposed by the existing system. The decentralized nature of blockchain chains also makes them less vulnerable to technical failures and external attacks that often put valuable information at risk. The security provided by blockchain networks could be particularly useful for hospitals, which often deal with hacker breaches and ransomware attacks.
2. Operational compatibility
Another advantage of blockchain-based medical records is their ability to enhance interoperability between clinics, hospitals and other health service providers. Technological differences in data storage systems often make it difficult for organizations to share documents.
However, blockchains could solve this problem by allowing authorized parties to access a unified database of patient files or even drug distribution records. So instead of trying to interact with each other's internal storage, providers can work together on a single volume.
3. Accessibility and transparency
In addition to simplifying the process of sharing records, blockchain systems may also give patients increased levels of access and transparency about their health information. In some circumstances, requiring validation of changes made to patient documents can ensure the accuracy of records. If used correctly, this can provide an additional layer of security against human error and intentional fraud.
4. Reliable management of supply chains
Blockchains can provide a reliable way to track medicines through the entire manufacturing and distribution process, thus reducing the widespread problem of drug counterfeiting. In combination with IoT devices used to measure factors such as temperature, blockchain technology can also be used to verify proper storage and shipping conditions or to verify the quality of medicines.
5. Protection against insurance fraud
Blockchain technology can also be used to combat medical insurance fraud, which is estimated to cost the American healthcare system more than $100 billion annually. Immutable records stored on blockchains and shared with an insurance provider can prevent some of the most common types of fraud, including billing for transactions that never occurred and charging for unnecessary services.
6. Use of clinical trials
Another use of blockchain technology in healthcare is to improve the quality and effectiveness of clinical trials. Clinical trial specialists can use medical data on blockchain chains to identify patients who could benefit from the drugs being tested.
This system could significantly improve enrollment in clinical trials, as many patients are never informed about relevant drug trials and are therefore never given the opportunity to participate in them. While conducting experiments, blockchains can be used to ensure the integrity of the data collected.
Challenges of integrating blockchain technology into healthcare
The application of blockchain technology in healthcare is indeed promising, but it comes with some challenges. Let's address some of these key concerns.
1. Compliance
For example, in the United States healthcare companies interested in adopting blockchain technology are required to comply with existing data regulations, such as the Health Insurance Portability and Accountability Act of 1996 (HIPAA).
HIPAA sets standards for data storage, sharing, and protection in the healthcare industry. Therefore, for US-based companies to be fully compliant, they will need to deploy dedicated blockchain ledger systems with increased privacy features and limited accessibility.
2. Initial costs and speed
On the service provider side, blockchain solutions are likely to involve a high initial investment, a fact that certainly prevents their wider adoption. In addition, distributed systems tend to be much slower than centralized systems in terms of the rate at which transactions are processed per second.
A large blockchain network with many nodes will likely need more time to transfer and synchronize data when compared to centralized systems. This is particularly troubling for large databases that will eventually need to store and track the information of millions of patients. The problem will be worse for large image files, such as CT or MRI.
3. Educational gap
The complexity of blockchain technology creates educational challenges in the healthcare sector. This gap in understanding can lead to underutilization and improper implementation of blockchain solutions.
Continuing training and education are needed to equip healthcare professionals with knowledge about potential use cases, appropriate implementation strategies, and awareness of evolving regulations and cyber threats.
4. Scalability
The huge amount of data produced by the healthcare sector represents a major challenge to the scalability of blockchain networks. As the volume of data increases, the transaction time and operational cost on some blockchains increases.
This limitation can delay information retrieval or transaction verification, negatively impacting system efficiency and patient care. Additionally, these concerns may discourage healthcare entities from adopting blockchain technology, halting innovations and progress in this sector.
5. Data standardization
Blockchains need standardized data inputs to promote efficient communication and interoperability within the network. However, this is particularly challenging in healthcare, given the wide range of data types and formats.
Without a standardized data protocol, information exchange can lead to misinterpretation or errors, disrupting the system. Therefore, achieving data standardization without losing important details of health information is a major obstacle to the use of blockchain technology in healthcare.
Concluding thoughts
From securely managing patient data to enhancing transparency and safety, blockchain technology has great potential for the healthcare sector. However, the educational gap, scalability issues and existing regulatory frameworks are some of the factors that need to be addressed. Balancing these complexities with the many benefits of blockchain technology will therefore require a careful and collaborative approach between all stakeholders in the healthcare sector.
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