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Exploring Blockchain Beyond Cryptocurrency
The first thing which comes to your mind when you hear Blockchain must be cryptocurrency. But it is being explored and implemented in various other industries such as finance, supply chain management, healthcare, voting systems, and more, to improve transparency, security, and efficiency in various processes. Blockchain-based data storage has become a topic in healthcare due to its ability to protect sensitive medical data, patient records, and diagnostic images.
What is blockchain?
It is a decentralized, distributed ledger technology that records transactions across multiple computers in a way that makes them immutable and tamper-resistant. As the name suggests it’s a chain of blocks containing digital information namely transactions, contracts, or other data stored in a public database. Each block in the chain contains a cryptographic hash of the previous block, a timestamp, and transaction data.
Why Blockchain is Essential for Healthcare
Why this much-complicated system is needed for healthcare, you might ask now. Let’s find the answer and then see more about blockchain.
In recent years, healthcare has witnessed significant advancements, including telehealth services, COVID-19 tracking systems, and online scheduling tools, all aimed at improving accessibility. However, alongside these benefits, there’s a rising concern: the vulnerability of patient data to breaches and compromise.
What type of information must be secured in health care? That is a question we should ask before learning how to secure them.
Types of information to secure in healthcare
- Patient health information or PHI
It includes any information related to an individual’s health status, healthcare provision, or payment for healthcare services. This can include medical records, treatment history, lab results, prescriptions, and demographic information. Securing PHI is essential to protect patient privacy, maintain confidentiality, and comply with the rules and regulations of some countries.
- Personal Identifiable Information or PII
It includes any information that can be used to identify an individual, such as their name, date of birth, social security number, address, and contact information. In healthcare, PII is often linked with PHI to uniquely identify patients. Securing PII is crucial to prevent identity theft, fraud, and unauthorized access to sensitive personal data.
- Financial Information
Financial information related to healthcare payments, insurance claims, billing, and reimbursement should be secured to protect against fraud, unauthorized transactions, and financial exploitation. This includes credit card numbers, bank account details, insurance policy information, and billing records.
- Operational Data
Data related to healthcare facilities, systems, and processes are needed to ensure the availability, reliability, and efficiency of healthcare services. This includes information technology systems, network infrastructure, administrative records, and supply chain data.
- Communication Channels
Security of communication channels used in healthcare, such as email, messaging platforms, and telemedicine applications is essential to protect the confidentiality, integrity, and authenticity of patient communications. Encryption, authentication, and secure protocols should be employed to prevent eavesdropping, interception, and unauthorized access to sensitive information.
- Medical Research Data
Medical research data, including clinical trial data, genomic data, and health outcomes data, must be secured to protect intellectual property, patient confidentiality, and the integrity of research findings. Unauthorized access or tampering with research data can undermine the credibility of scientific research and compromise patient privacy.
Traditional Data Protection Challenges
Even though healthcare providers are aware of the importance of data protection, traditional methods of data protection are hackable. That is why healthcare data breaches pose a global threat, leading to serious consequences such as exposure of patient information, privacy violations, identity theft, fraud, legal actions, and substantial financial losses. As this challenge intensifies, the importance of secure, verifiable, and compliant healthcare records becomes more pressing, not just for healthcare providers but also for the patients they serve.
According to the 2023 IBM Cost of a Data Breach report, the healthcare industry remains the most costly sector for data breaches. Despite a stable number of attacks, increasing hacker sophistication has made breaches harder to prevent and more damaging, necessitating a reevaluation of cybersecurity strategies. The report emphasizes the urgent need for the healthcare sector to proactively address evolving cybersecurity threats.
Not only are the companies that provide healthcare services but also the patients are now aware of the risk. That is why patient concerns about the security of their medical records have emerged due to the rising frequency of healthcare data breaches. With over 41 million healthcare records breached in the first half of 2023, patients are increasingly wary of healthcare providers managing their data, underscoring the need for improved data handling and privacy measures.
The solution for these rising issues is blockchain.
It offers a solution to address these concerns by providing a secure environment for patient data through its immutability, thereby restoring trust. As the healthcare industry faces unprecedented challenges with the proliferation of new data collection technologies, traditional methods of data security are no longer effective.
Blockchain technology is being explored and implemented in healthcare to address various challenges such as data security, interoperability, patient privacy, and the integrity of medical records.
Now let’s see how.
Blockchain is unhackable thanks to the features of this technology.
Blockchain operates on a peer-to-peer network of computers called nodes rather than a central authority, which removes the need for intermediaries and central control. This is called decentralization and the nature of blockchain ensures that no single organization holds control over the entire network, making it challenging for malicious actors to tamper with patient data.
Transactions recorded on a blockchain are visible to all participants, creating transparency and reducing the risk of fraud or manipulation. It also allows them to trace the history of data and verify its legitimacy.
The blockchain memory is immutable, which means once a transaction is recorded on the blockchain, it cannot be altered or deleted. This immutability achieved through cryptographic hashing and consensus mechanisms safeguards patient information and medical history.
Blockchain uses cryptographic techniques to secure transactions and ensure the integrity of the data. Consensus algorithms such as Proof of Work or Proof of Stake are used to validate and confirm transactions. That means that transactions cannot be added to the blockchain unless all network participants agree on their authenticity, enhancing data reliability.
These properties of blockchain technology make it possible for it to be used for Electronic Health Records, clinical trials and research, drug traceability, billing and claims processing, telemedicine and remote patient monitoring, and Internet of Things integration.
Let’s now discuss a bit more in-depth about these uses.
Real-life applications of blockchain in healthcare
- Medical Records Management
Blockchain can provide a secure and decentralized way to manage electronic medical records and electronic health records. Each block in the blockchain can store a patient’s medical history, treatment records, diagnostic reports, and other relevant data. This information can be securely accessed and shared among healthcare providers with the patient’s consent, ensuring data integrity and reducing the risk of unauthorized access or tampering.
- Interoperability
Healthcare systems often struggle with interoperability, making it difficult to share patient data across different healthcare providers and systems. Blockchain can facilitate interoperability by creating a standardized, secure, and decentralized platform for sharing and accessing healthcare data. Smart contracts can be used to define data access permissions and ensure compliance with privacy regulations.
- Clinical Trials and Research
Blockchain technology can streamline the management of clinical trials by securely recording and managing trial data, patient consent, and regulatory compliance. Smart contracts can automate processes such as patient recruitment, data collection, and payment disbursement, improving transparency, efficiency, and accountability in clinical research.
- Drug Traceability and Supply Chain Management
Blockchain can be used to track the provenance and distribution of pharmaceuticals and medical devices throughout the supply chain. By recording each transaction or movement of a product on the blockchain, stakeholders can verify the authenticity, quality, and compliance of drugs and medical supplies, helping to prevent counterfeiting, diversion, and contamination.
- Healthcare Payments and Billing
Blockchain technology can streamline healthcare payments and billing processes by automating claims processing, reducing fraud, and minimizing administrative overhead. Smart contracts can be used to automate payment verification, adjudication, and settlement, reducing delays and errors in the reimbursement process.
- Patient Identity Management
Blockchain can provide a secure and decentralized platform for managing patient identities and authentication. By storing patient identity information on the blockchain, healthcare providers can ensure the accuracy and integrity of patient records while protecting patient privacy and confidentiality.
That is not all, the permission-driven framework of blockchain technology empowers healthcare entities to regulate access to and alterations of patient data. Only authorized personnel equipped with suitable cryptographic keys can access specific sections of the blockchain, preserving patient confidentiality and data integrity.
As blockchain technology continues to evolve, it holds promise in transforming how medical data is exchanged, stored, and protected, enabling more efficient and transparent healthcare operations and empowering individuals to have greater control over their health information.
Currently, blockchain is widely used to centralize the management of patient medical records across different providers, to ensure data integrity and security while granting authorized access to healthcare professionals, track pharmaceuticals from production to distribution, and enhance the security and privacy of telemedicine interactions and remote patient monitoring by securely storing patient data and automating payment and data-sharing agreements.
Real-life applications such as MedRec, Health Wizz, Medicalchain, and PokitDok demonstrate the potential of blockchain in revolutionizing healthcare data management and exchange.
While blockchain holds promise for healthcare, challenges persist, necessitating collaboration among stakeholders, including providers, regulators, and technologists. Technical hurdles like scalability and energy consumption demand attention, alongside privacy, regulatory compliance, and standardization concerns.