Blockchain in Healthcare Industry

An Executive’s Guide to Blockchain in Healthcare Industry in 2022

How is blockchain used in healthcare? How blockchain is changing the healthcare industry? What problems can blockchain solve in healthcare?
How is blockchain used in healthcare? How blockchain is changing the healthcare industry? What problems can blockchain solve in healthcare?

The goal is to cut away the middleman. It’s about enhancing the security of various healthcare transactional processes while reducing bureaucracy and manual inefficiencies, boosting service quality and democratizing patient data.

Blockchain is a cryptographically linked decentralized list of digital records. Each record is referred to as a ‘block.’ Every block has a cryptographic hash of the preceding block, which is a mathematical algorithm and a timestamp and transaction data. Blockchain was created as a secure open ledger for digital recording transactions administered by a peer-to-peer network.

What exactly is blockchain?

A blockchain is a digital transaction kept by a network of computers and is difficult to hack or alter. Each transaction is independently validated, timestamped, and contributed to a growing chain of data using peer-to-peer computer networks. The info can’t be changed once it’s been recorded.

How blockchain works in healthcare

Healthcare blockchain applications will operate similarly to blockchains in other industries. A blockchain is a ledger that takes care of records and distributes transactions. These transactions are immutable, which means they cannot be modified in any way.

There is also no requirement for a centralized authority. There is no requirement for a blockchain participant to have a prior relationship with another. Insurance, for example, might (with the patient’s approval) have access to a patient’s medical information housed in a hospital’s EMR system, even if the insurer had never dealt with the hospital before. The first requirement is that the blockchain network validates the insurer and hospital.

Safeguarding Patient Information

It’s unsurprising that the most popular blockchain healthcare use right now is keeping our sensitive medical data safe and secure. Security is a main concern in the healthcare industry. In the last eight years, data breaches have gone over 176 million patient records. The criminals stole health and genomic testing records.

It’s ripe for security applications because blockchain can preserve an incorruptible,

decentralized, and transparent log of all patient data. Furthermore,when blockchain is visible, it is taken to be private, hiding an individual’s identity behind complicated and secure algorithms that can preserve the sensitivity of medical data. Thanks to the technology’s decentralized structure, patients, doctors, and healthcare providers can all share the same information swiftly and safely.

Blockchain in healthcare: what it does for institutions and suppliers

Managing patient data, compliance, and regulatory requirements are challenging and time-consuming for health companies, not to mention expensive.  The blockchain, on the other hand, provides a ray of hope.

Advantages and difficulties of implementing blockchain in healthcare

The following are the top benefits of blockchain in healthcare:

Security: It is extremely difficult to tamper with blockchains.

Cost-effectiveness: Because no middlemen are required, transaction expenses are decreased.

Smart contracts that are automated help to speed up transactions.

The following are some of the most significant obstacles to implementing blockchain in healthcare:

Adoption: Blockchain adoption in healthcare has been gradual due to several factors, including legal fears and the view of blockchain as newer technology.

Scalability: Some healthcare providers are concerned that blockchain systems may not scale to meet their needs.

Security flaws: While blockchains have some security benefits, they can also have security flaws, particularly significant in healthcare applications.

Blockchains are the foundation of a better healthcare system.

Rather than having several digital ledgers for the sector, better health care outcomes necessitate a single global blockchain that scales massively, can effectively handle large volumes of data and serves as a single source of information.

A single global blockchain could serve as the foundation for a universal global electronic health record, allowing for a secure digital environment capable of storing and maintaining patient data in a verifiable manner that is publicly accessible in real-time by anyone in the healthcare service provider chain (if authorized by the patient). Each new piece of data might be used to provide an up-to-date, comprehensive picture of a patient’s health, allowing physicians, pharmacies, and other healthcare professionals to advise patients better. By exploiting the blockchain’s unique capabilities, we can iterate and innovate beyond the restrictions of traditional platforms. The same safeguards that prevent double-spending of digital currency may be used to prevent double-filling of pharmaceutical prescriptions, and blockchain private keys could be used to validate insurance coverage and identify identity.

Blockchain in Health Care: Innovation and Security

Whether blockchain is a blessing or a curse depends on what it brings to a non-blockchain context in terms of innovation and security. It can increase the cost or complexity of information technology (IT) or company [33]. The balance between integrating new IT solutions and keeping information assets safe from security threats is an ever-present challenge for any organization or sector. Blockchain technology has come out as a promising solution to this problem, allowing for innovation by implementing a new decentralized information infrastructure [17,19,34].

The healthcare industry has a long history of high regulation and bureaucratic inefficiency, which has stifled innovation [35-37], and data breaches have become increasingly common in recent years [38]. It is believed that using blockchain to innovate in the cyber world preserves the privacy and security of particularly vulnerable and sensitive patient data [35]. However, there are more tests with potential blockchain solutions than full deployments in the healthcare sector.

discuss 3 Ways Blockchain Can Help Your Healthcare Organization Succeed.

Better Data Management and Sharing for Patients

  • In the healthcare business, blockchain technology can build a single system for safe, always-updated health records that can be easily accessed and retrieved by authorized individuals.
  •  Avoiding miscommunications between different healthcare personnel caring for the same patient can save numerous lives by allowing for speedier diagnosis and care tailored to the individual.

Increased Payment Effectiveness

  • Through cryptocurrency token-based payments, blockchain technology can help in this area. There are no third-party payment vendor services with blockchain when it comes to fees. Thus, those fees aren’t a consideration. 
  • After service is rendered, the healthcare provider can directly transfer the agreed-upon cryptocurrency to their wallet, resulting in a safe, transparent, rapid, and traceable means of payment that does not involve using a third party to handle or settle payment disputes. 
  • Once you’ve got your cryptocurrency, you can keep it in your wallet, exchange it for a stable coin, or convert it to cash. If fees are connected with completing this transaction, they are usually lower than those imposed by a third-party seller.
  •  Furthermore, because blockchain transactions are irreversible, the possibility of future payments being rescinded or fraud is considerably decreased.

Electronic Health Records and Data Security

  • Blockchain may be used to build standard security standards, provide end-to-end encryption, prohibit unauthorized access to data in transit, and validate the integrity of software downloads, among other things. 
  • Decentralizing sensitive data also makes it more difficult, if not impossible, for hackers to break into data storage systems.