Blockchain is a decentralized ledger. It is called so because it is distributed across a network of computers and has no single body to manage it. All transactions that are recorded on the ledger are also broadcast to all network participants - the computers that store the ledger. This is why it is impossible to change or reverse a transaction without changing the records on all computers. This is how blockchain works. While most people know blockchain in connection with cryptocurrency, there are many other fields where blockchain can be used, and medicine is one of them.
Table of contents
- Advantages of Using Blockchain in Healthcare
- Applications of Blockchain in Healthcare
- Role of Smart Contracts in Medical Processes
- Challenges and Barriers to Blockchain Adoption in Medicine
- Successful Examples of Blockchain in Medicine
- Future of Blockchain in Medicine
Why Blockchain Is Needed in Medicine
The healthcare industry has to manage vast volumes of sensitive data. Those are patient records, pharmaceutical supply chains, and many others. Traditional data management systems that are used in medicine are fragmented and prone to data breaches. This makes them highly inefficient. Additionally, handling all that information securely is expensive.
Blockchain can offer a secure, transparent, and relatively cheap way to manage medical records. Additionally, blockchain can help to eliminate fragmentation, as it provides a single space for data storage.
Advantages of Using Blockchain in Healthcare
Here are just some of the ways in which healthcare can benefit from blockchain.
Security and Protection of Patient Data
Data security is one of the biggest challenges in healthcare. Patient records contain highly confidential information. If this information is compromised, it can lead to identity theft and fraud. The decentralized nature of blockchain and encryption techniques makes it very difficult for hackers to access sensitive data. Patient records can be securely stored on a blockchain, and access can be given only to authorized personnel based on their permission level. This reduces the risk of breaches significantly.
Transparency and Immutability of Records
All medical records that are stored on a blockchain are immutable. They cannot be changed without attracting attention.
This is why blockchain can be used to ensure the accuracy of all records and the reliability of all patient stories. Immutability also can help to prevent fraud and manipulations in medical research and clinical trials.
Reduction of Administrative Costs
Administration of all healthcare records requires a lot of paperwork, billing, and data verification processes. Blockchain can help to automate many of these tasks, it can reduce the need for intermediaries and lower operational costs. Smart contracts can facilitate and automate billing, insurance claims, and compliance verification, and in general, can make healthcare more efficient.
Applications of Blockchain in Healthcare
Here are some examples of how blockchain can be used in healthcare.
Electronic Medical Records (EMR)
Managing medical records is difficult, and it becomes even more complex when several providers need to access the same patient information. Here is when blockchain can come to help. Blockchain can create a unified system where all medical histories, prescriptions, test results, and treatment plans can be stored. With it, it is possible to eliminate duplicate tests and errors and enhance patient care.
Pharmaceutical Supply Chain Tracking
One of the biggest problems in the pharmaceutical industry is fake or counterfeit medicines. They pose significant risks to health and cause huge financial losses. With blockchain, it is possible to implement end-to-end tracking mechanisms to track medicines from manufacturers to pharmacies. It will help to ensure that only authentic medicines are sold to patients.
With blockchain, it is possible to implement the verification of the origins of the medicine, their storage conditions, and transportation history. This will boost trust in the pharmaceutical supply chain.
Management of Insurance Policies and Claims Processing
Insurance fraud and delays in claims processing are common issues in healthcare. Blockchain can automate and verify insurance transactions using smart contracts. When a patient comes for medical treatment, one can rapidly verify on the blockchain whether the patient has insurance coverage and process it. This helps to reduce the number of fraudulent claims and boost reimbursement efficiency and speed.
Development of Personalized Medical Solutions
Blockchain can help to improve the processes of data sharing for research purposes. This, in turn, can lead to significant advancements in personalized medicine. If researchers can access anonymized patient data, they can develop targeted treatments based on specific genetic profiles and medical histories. This can help to develop medicines and improve treatment results.
Role of Smart Contracts in Medical Processes
Smart contracts are very important to enable blockchain operation. Here is how they help.
Automation of Insurance Payouts
Smart contracts perform specific actions when predetermined conditions are met. In healthcare, smart contracts can be applied to automate insurance claims. When a patient receives his treatment, the healthcare provider receives its money instantly. This not only reduces the time needed for processing such claims but also eliminates intermediaries and thus, cuts costs.
Ensuring Compliance in Patient-Provider Agreements
Smart contracts can enforce agreements between patients and medical institutions. For example, patients can grant some level of access to their medical records to doctors, and smart contracts can ensure that only the predetermined data can be accessed, and only for intended purposes. This also helps to boost trust and ensure compliance with data protection regulations.
Challenges and Barriers to Blockchain Adoption in Medicine
Blockchain can deliver impressive benefits, but implementing it is not easy. Here are the main challenges that have to be handled before we can use blockchain for medicine.
Issues Caused by Data Compatibility
For data management and data storage, different hospitals use different systems. Before they integrate blockchain, these systems shall become more uniform. Moreover, all records shall be standardized, and this is a time-consuming and costly process.
Another issue is interoperability. Without it, blockchain-based solutions for storing medical information won’t be accepted by healthcare providers.
Legal and Regulatory Challenges
Healthcare data is strictly regulated. For blockchain integration, this technology shall comply with all laws and regulations about the data. This is why governments shall establish very clear rules for blockchain adoption in healthcare.
High Costs of Implementing New Technologies
It is very expensive to develop and implement a blockchain that would be able to manage healthcare data. Another expense is training of staff to use blockchain. This is why healthcare providers may resist blockchain implementation.
Successful Examples of Blockchain in Medicine
Even though it is still far till the time comes when blockchain is applied in all fields of healthcare, there are some projects that show us an example of how it can be done.
Pharmaceutical Supply Chain Tracking Projects
IBM and Walmart have contributed to the development of some blockchain solutions. These solutions were developed to improve improve transparency in pharmaceutical supply chains. This will help to ensure that medicines are authentic and safe to use.
Secure Medical Information Sharing Platforms
Some healthcare providers and research institutions have developed platforms where medical data can be exchanged. For example, Estonia has already integrated blockchain into its national healthcare system. This allowed patients to control access to their medical records and ensure data integrity.
Future of Blockchain in Medicine
Blockchain can change how healthcare operates. It can connect different healthcare providers into a unified network. It can help with data sharing for medical research. It, in turn, would improve patient-centric care.
In the coming years, blockchain can already solve such key issues in healthcare as fraud, improper patient data management, and bad traceability of medicines. When more healthcare providers recognize the benefits that the blockchain can deliver, they will start implementing this technology.
While challenges remain, ongoing development of technology and regulatory changes promise a good future. Eventually, blockchain will play an important role in reshaping healthcare and developing a more secure patient-centered medical ecosystem.
