Blockchain and its Role in Healthcare: Advantages and Disadvantages
Blockchain technology enables the efficient creation of a synchronized, shared source of high-quality provider data through a decentralized, distributed ledger across a peer-to-peer network. Transactions are recorded chronologically in a cooperative and tamper-resistant manner, and updates entered by any party on their record are replicated almost immediately across all the other parties’ copies. When updates to a transaction are entered and accepted, those updates amend, rather than alter, those transactions. All transactions and updates remain visible and unchanged, providing a real-time audit trail and ensuring data integrity.
Blockchain is known for being an incorruptible and transparent; it is also private, concealing the identity of any individual with complex and secure codes that can protect the sensitivity of medical data. The decentralized nature of the technology also allows patients, doctors, and healthcare providers to share the same information quickly and safely.
Blockchain is a secure, traceable and nearly instant way to synchronize information across multiple sources. This is real-time information sharing as opposed to information transfer and/or storage. The result is a transparent database, where all members see the same information, and updates to the data are recorded and approved. The technology prevents human error, and more important, it protects against any possible “bad actors” seeking to corrupt the system.
Advantages and challenges of implementing blockchain in healthcare
The top advantages of blockchain in healthcare include:
Security: Tampering with blockchains is very difficult; transparency is present, and transactions are clear and unalterable.
Cost-effectiveness: Transaction costs are reduced because no intermediaries are needed.
Efficiency: Automated smart contracts speed up transactions.
The key challenges of using blockchain in healthcare include:
Adoption: The adoption of blockchain in healthcare has been slow for several reasons, including the fear of litigation and the perception of blockchain as a newer technology.
Scalability: Some healthcare organizations are concerned that blockchain systems won't be able to scale as needed to support their needs.
Security vulnerabilities: Despite some security advantages, blockchains also can have potential security vulnerabilities that are especially concerning with healthcare applications.
(sourced from the United States National Institutes of Standards and Technology (NIST) Healthcare Blockchain Project)
