The blockchain technology has been on a rise ever since the huge success of the first blockchain based cryptocurrency - bitcoin. Over time, the use of blockchain was not limited to just for the creation and functioning of cryptocurrencies, but the technology, with its unique features like decentralization, high security, smart contracts, etc., is now being used for the growth of a number of industries. Healthcare is one such industry.

What is blockchain?

Blockchain is a technology that was invented with the purpose to enable a platform to make secure peer-to-peer transactions. It is a network or ledger of digital transactions in which each transaction is automatically verified through thousands of distributed nodes (systems) in the network. Each verified transaction is encrypted and then stored in one of the blocks which are interconnected with each other via a chain of random codes. The system is too complex to be hacked yet too convenient for anyone to access and use.

The convenience to use blockchain is what made it an obvious technology choice for many industries, such as education, banking and finance, defence, e-commerce and healthcare.

There are presently some startups that are working on blockchain-based healthcare apps and solutions to solve specific problems of the health industry around the world. Let’s see how the blockchain technology is benefiting this industry and what is the future scope.

Blockchain beyond the Crypto Industry

The non-crypto potential of blockchain is now being identified by many companies, individuals, private and public organisations and investors. A number of blockchain-based decentralized apps have been launched by startups in the recent years and many more are being developed in various industries.

The ongoing use of blockchain in these industries is an evidence of the bright future of this technology. And why not? Blockchain is probably the biggest technology evolution of our time. It has applications in digital identities, cloud storage, digital payments, contracts, e-voting, government and private businesses and many other sectors.

As for the healthcare industry, as many as 100+ blockchain-based healthcare startups have been launched in the past few years. This is beside the existing medical institutions that are also experimenting with this technology.

Blockchain Technology for Healthcare

As I said before, there are several healthcare startups and existing companies that are utilizing the concept of blockchain for the innovation of medical services delivery. Taeyong Kim, CEO & Co-Founder of Medipedia, a blockchain-based medical tourism startup, said in a recent interview at the RISE 2018 conference that the blockchain technology empowers their company to provide a healthcare ecosystem which is free of agents and can be used by medical consumers for finding professional medical information and assistance in a foreign country. Upon asking the role of the blockchain technology, he clarified that the technology ensures that the records and data of medical consumers and institutions are kept public yet encrypted on a decentralized platform so that it can be easily accessed by anyone but cannot be modified without proper authorisation.

Medipedia is reportedly one of the few healthcare startups that are developed on the blockchain technology. The company, with its unique project concept and platform features, has already aroused curiosity among investors and industry experts, who are actively partnering with the platform.

Kim said that their startup is already getting a huge response from the patients as well as the medical experts and institutions around the world. Medipedia, which is primarily a Healthcare Matching and Consultation System, utilizes smart contracts to automatically secure all the transactions and conversations that take place on the platform so that patients cannot be cheated by medical providers, and vice-versa. The cryptocurrency (MEP token) makes it convenient for patients to pay for services on the platform.

What are the benefits of blockchain for the healthcare industry?

Now, back to the original question of this article, how the medical industry can benefit by investing in the blockchain.

Well, startups like Medipedia are the perfect example of the benefits and innovation the blockchain technology can bring to this industry.



Easy Access to Data

The present healthcare industry is too institution-oriented, where it is almost impossible for patients to find the correct and reliable information about a treatment or healthcare provider. Also, service providers cannot easily access the patient data and treatment history, which are centralized with institutions, in order to provide better treatment. The blockchain effectively resolves this problem by creating a decentralized database of medical records that can be accessed by anyone but can be changed by only authorized people.

Exchange of Health Data

One of the primary applications of blockchain is for information exchange. The security, speed, reliability and low cost of the transaction are what make it a perfect way to exchange digital information from one point to another. The technology can be used by medical institutions to exchange patient data in real-time for faster and better treatment of a condition.

Smart Contracts for better information control

Smart contracts is a blockchain application that enables medical consumers to determine which data they want to share with whom and for what purpose. This gives particular users more control over their data and the flexibility to make better health-related decisions. Smart contracts also protect user rights and minimize fraud activities.

Security from attacks

While the digitization of health services and information has brought many benefits for the consumers and services providers, it has also prompted cybersecurity threats that are only increasing every day, putting the future of the digital healthcare industry at risk. The blockchain technology provides a solution in the form of a secure way to store medical records and data which is almost impossible to hack or modify without authorisation.

Reduces Cost and Improves Efficiency

One of the most significant benefits of the blockchain technology in any industry is the reduced cost of transactions and services. In healthcare, patients can directly access institution data and connect with them. Likewise, medical institutions can access patient data on blockchain without having to go through the whole approval process, which is both time-consuming and costly. This effectively reduces the cost of services and improves the efficiency.

To sum up, blockchain is probably the best thing that could have happened to the present healthcare industry. It improves transaction security, lets you access reliable information and reduces the cost of services. It is time that we start valuing the importance of blockchain for the growth of this industry. Let there be more healthcare startups utilizing the power of blockchain for the benefit of consumers and the service providers.

