4 Reasons for the Healthcare Industry to Focus on Blockchain Technology

There are many people who think that blockchain is only related to cryptocurrencies like Bitcoin.  But it’s not true! However, this technology is gradually explored in various different supply chains that also include the health industry. 

If taken in a simple tone, then blockchain technology is a reorganized and distributed ledger system, where diverse transactions are always recorded. If we go in detail then according to experts, blockchain is an unchallengeable and shared record of peer-to-peer transaction blocks that are preserved in a digital ledger. So before moving further, let’s see what Blockchain is and why it is a boon for the healthcare industry!

What is Blockchain?

Blockchain is a way of steadily swapping every company observing their own version of the truth. When any organization transactions occur, everyone has a record of that. Those records are stored within. However, when everyone has their own version, this increases the chances of errors and fraud. 

In addition to this, with blockchain, those records are preserved on a single, shared, tamper-evident digital ledger. Before a contract or transaction is agreed upon, every individual party needs to consent to it. Before payment can be made, all the parties need to confirm the conditions of the contract have been met. Every transaction on this digital ledger is stored and transferred using cryptographic encode, creating the blockchain sturdier than other methods of transferring and preserving data. Transactions and the data records can’t be deleted, which means that once the data is recorded in a blockchain it is irreparable.

Did you know – The amount of 20$ Billion is expected to be generated in the global blockchain market in 2024.

However, blockchain is also observed as a way of revealing new value, rationalizing the current processes, and reducing risk. This is the reason; blockchain has also impacted on the health sector. Well, there are numerous ways blockchain can be used for good reasons. Let’s jump on to know the reasons for the health industry to focus on blockchain technology.

Why is blockchain termed to be so important for the health care sector?

Blockchain technology is a ground-breaking invention as it resolves many digital challenges as mentioned below: 

• Immutability:

All the medical records written in the blockchain cannot be changed without anyone’s consent. This also comprises the admin system and the third parties. This enables people to prove that their medical record is unaltered and genuine. 

• Transparency: 

This technology provides a great deal of transparency as every deal made is logged and verified openly.

• Security: 

In Blockchain technology the records are preserved across all the systems rather than a centralized database that improves its security and makes it full-proof.

• Reduced transaction costs: 

Blockchain technology completely reduces third-party activities and even banks by enabling peer-to-peer transactions thus eliminating the transaction costs.

• Innovation: 

This technology offers an efficient platform for new and advanced business models to boost and compete with conventional businesses.

Let’s proceed further with 4 essential reasons for health industry to focus on blockchain technology:

• Data Security

Security is considered to be one of the most important priorities for various industries. No matter, it’s a manufacturing industry or a healthcare company. And it comes to healthcare records; we need to be precise, certifiable and trusted when the details are shared between the organizations. We all know that any patient treatment information and compliance needs the utmost care to ensure great privacy and accuracy. However, with blockchain technology, every company in the chain would have access to the same information and records, without worrying about the preciseness and accuracy. In a healthcare solution based on blockchain, the health information records cannot be revealed without a person’s public key. For sharing the info patients have to share their public keys to interchange the health records with the companies they want. 

Hence, the information remains non-identifiable until the patient offers his/her consent. Since Blockchain enables users to alter any details preserved on the Blockchain with their private key, no unofficial bodies can influence the data.

• Unlock New Value

Blockchain technology not only eliminates the data security problems but they can also be utilized for unlocking new value. With the implementation of efficient data sharing, healthcare and pharma organizations can make new services and products that enhance patient’s results. New technology, new drugs, and services can implement preventive and responsive healthcare, and observe patients after the treatment given, providing organizations are sharing the most precise and easily transferred version of the data.

• Enhanced Data Sharing

One of the main challenges for health service providers, insurance organizations, and big pharma companies is the sharing of data. Well, Blockchain technology is specifically designed to resolve this problem. Every company is focused on the patient. However, patient data is required to move between numerous companies to organize the treatment process. And yet sharing this record proves difficult. Despite the same data flowing effortlessly between companies, each has its own data and the data of one don’t always match, even at the time of referring to the same patient.

Due to all these benefits of blockchain technology, many people have started opting for various health applications so that they can easily manage the medical records. However, a good statement mentioned by IBM - This technology is a game-changer. One of the finest technologies for data sharing between healthcare services providers, which leads to a higher chance of exact diagnosis, more efficient treatments, and overall enhances the ability of healthcare companies to deliver affordable cost services. 

• Eliminates Overheads

We all know that organizing databases is an expensive process. Creating them something that can be shared and transmitted is even more expensive because it is bringing in data scientists to clear them, make sensible data to understand, and build new value from databases.

However, all of those major concerns can easily be eliminated with the data being recorded with the help of blockchain technology. The shared databases are more budget-friendly, more accurate, and easy at managing. 

The Final Verdict!

So after this long discussion on blockchain technology, let’s hear some final words…

Blockchain technique gives an enhanced convergence across various digital devices. Blockchain technology can help healthcare providers and enterprises to solve many pressing challenges that include information interoperability, cybersecurity, insurance notarization, billing fraud issues, errors, and more. This is why it is important for organizations to invest in blockchain technology to hand over the complete data security and quick access to the medical records of the patient. 

About the Author:- Sourodip Biswas works at Space-O Canada, a company having expertise in software and mobile app development. He believes knowledge is a treasure that follows its owner everywhere. His writings has been published on many distinguished websites across the web.