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Blockchain has the potential to transform the healthcare industry by enabling secure data management and increased transparency.
Integrating blockchain into healthcare comes with a number of challenges, such as upfront investment requirements, regulatory compliance, and scalability and standardization issues.
Decentralization and data distribution on the blockchain can be used to enhance security and synchronize patient records.
Blockchain integration can also improve the efficiency of communication between healthcare providers and ensure accessibility and transparency of patient care.
Introduction
Although blockchain is typically associated with Bitcoin and other cryptocurrencies, it is used in a variety of industries to store and protect data. Charity, supply chain and healthcare are just the most prominent examples of blockchain use cases. Let's look at exactly how it can be used in healthcare.
Benefits of using blockchain in healthcare
Cryptocurrency blockchains provide secure storage of financial transaction records, which can also be used to store medical data. Most blockchains are distributed systems that record and protect files using cryptography. Thanks to such a system, it is almost impossible to delete or change data without the approval of all network participants. Healthcare organizations can leverage blockchain's immutability to create fully secure databases.
Additionally, blockchain's peer-to-peer architecture allows updates to be synchronized across all copies of patient records in real time, even if they are stored on different computers. All network nodes store copies of the blockchain and regularly exchange information to ensure its relevance and reliability. Thus, decentralization and data distribution are also important advantages of blockchain.
It is important to note that the distributed structure of blockchains does not at all imply decentralized management in them. Since decentralization depends on the distribution of nodes and the overall architecture, distributed systems can have varying degrees of decentralization. Blockchains in healthcare are typically private. They are different from public networks, which are used as cryptocurrency ledgers. Thus, anyone can access the public blockchain, but to use a private system, permission will be required from a narrow circle of nodes that monitor its operation.
Potential Benefits of Using Blockchain in Healthcare
The innovative capabilities of blockchain can be used not only in finance, but also in healthcare: for example, to protect patient data or verify the authenticity of drugs. The following are several potential use cases for blockchain that could transform the entire healthcare industry.
1. Increased security
As mentioned earlier, one of the main use cases for blockchain in healthcare is to create a secure and peer-to-peer (distributed) database. The immutability of the blockchain will eliminate the problem of data corruption. This technology can be effectively used to record and track the medical data of thousands of patients.
Unlike traditional databases, which rely on a centralized server, using a distributed system allows information to be shared, provides a higher level of security, and also reduces administrative costs in the chosen system. The decentralized nature of the blockchain also makes it less susceptible to technical glitches and external attacks that compromise valuable information. The security provided by blockchain networks is especially important in the medical field, where hacker attacks for the purpose of extortion often occur.
2. Compatibility
Another benefit of maintaining medical records on the blockchain is the ability to achieve interoperability between different clinics, hospitals, and other healthcare providers. When organizations use different storage systems with their own technological differences, it makes it difficult to share documents and other information.
Blockchain helps solve this problem by giving authorized parties access to a single patient database and even drug distribution records. In other words, instead of interacting with each other's internal repositories, service providers can work together seamlessly in a single repository.
3. Accessibility and transparency
In addition to facilitating the exchange of information, blockchain systems also provide patients with accessible and transparent information about their own health. For example, having to confirm changes made to patient records will help ensure data accuracy. When used correctly, this will provide an additional layer of protection against unintentional errors and deliberate falsifications.
4. Robust supply chain management
Blockchain offers a reliable way to track drugs throughout their production and distribution process, thereby preventing the possibility of drug counterfeiting. When combined with IoT (Internet of Things) devices that are used to measure things like temperature, blockchain can ensure proper storage, transportation and quality of drugs.
5. Protection against insurance fraud
Blockchain can also be used to combat health insurance fraud. According to statistics, such scams cost the US healthcare system $100 billion annually. Providing insurance companies with immutable records on the blockchain will help prevent the most common types of fraud, including billing for procedures that were not performed and solicitation of unnecessary services.
6. Recruitment of clinical trial participants
Blockchain in healthcare has the potential to improve the quality and efficiency of clinical research. Trial recruiters can use medical data on the blockchain to find patients who will be interested in the drugs being tested.
This could significantly increase the number of study participants, since often patients are simply unaware of the clinical trials being conducted and therefore cannot take part in them. In addition, during the research itself, the blockchain will ensure the integrity of the collected data.
Challenges of integrating blockchain into healthcare
While the adoption of blockchain in the healthcare industry will bring many benefits, it does come with some challenges. Let's look at some of them.
1. Regulatory Compliance
Take the US for example: healthcare companies interested in the potential of blockchain must comply with data regulations, including the Health Insurance Portability and Accountability Act of 1996, HIPAA.
HIPAA defines standards for storing, sharing, and protecting data in the healthcare industry. Thus, to comply with the requirements, US companies will have to use special blockchain-based accounting systems with increased confidentiality and limited access.
2. Initial costs and speed
Implementing blockchain-based solutions will likely incur significant upfront costs, which will hinder wider adoption. Additionally, distributed systems are typically slower than centralized systems and process fewer transactions per second.
Compared to a centralized system, a large blockchain network with many nodes will take longer to transfer and synchronize data. This is especially true in huge databases that will potentially have to store and track information on millions of patients. In particular, it may be difficult to send high-resolution images (such as CT or MRI scans).
3. Insufficient knowledge
Another challenge with implementing blockchain in the healthcare sector is its complex structure, which requires specific knowledge to operate. Lack of awareness can lead to incorrect use of this technology and problems with the implementation of solutions based on it.
Healthcare professionals will need to attend regular training and deepen their knowledge of potential blockchain use cases, implementation strategies, latest developments and cyber threats.
4. Scalability
The healthcare sector generates huge volumes of data, which can pose a challenge to the scalability of blockchain networks. As the volume of data on blockchains increases, transaction processing costs and times also increase.
This flaw can cause delays in sending information or verifying transactions, which can negatively impact system efficiency and patient experience. In addition, lack of scalability may hinder the adoption of blockchain in the healthcare industry, as well as hinder innovation and progress.
5. Data standardization
When using blockchain, standardized data entry is required to ensure efficient communication and interoperability within the network. This is especially important in the healthcare industry due to the large number of data types and formats.
Without a standardized data protocol, information exchange can lead to misinterpretations or errors that disrupt system operation. Thus, achieving data standardization without losing important medical information is the main obstacle to the adoption of blockchain in the healthcare sector.
In conclusion
The use of blockchain in healthcare has enormous potential, with the technology offering secure data management, increased transparency, security and other benefits. However, this requires increasing healthcare industry awareness of blockchain, as well as addressing scalability and regulatory compliance issues. Meeting these challenges and realizing the true potential of blockchain will require a collective effort from all stakeholders in the healthcare sector.
Recommended reading
What is the blockchain trilemma
Solutions for scaling the first and second levels of the blockchain
What is blockchain and how does it work
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