Blockchain in healthcare: Improving data security and transparency

• Blockchain technology in healthcare relies on using advanced cryptography to create a secure system for recording and storing data 
• The application of blockchain in healthcare is helping redefine the healthcare landscape by improving data security, preventing the risk of fraud, and safeguarding patient privacy

The use of blockchain within healthcare is an area of growing interest, with the potential to transform healthcare as a whole.^1–3 But what exactly is blockchain technology? And how would it work to enhance healthcare? 

Here, we discuss blockchain’s applications in healthcare, paying particular attention to the use of blockchain technology to improve data security and offer more transparency.

Blockchain in healthcare refers to a distributed ledger system for securely recording and storing transaction-related data.^1–3 By creating a network, healthcare providers can implement a system capable of preserving and exchanging patient data through hospitals, diagnostic laboratories, pharmacy firms, and physicians.⁴

To work effectively, blockchain relies on using advanced cryptography to let everyone in the network see and share information with one another.¹ There is no one central storage point — instead, blockchain technology keeps copies of the records with everyone and requires individual verification to add or change any information.¹ This mechanism makes it highly secure and allows for an audit trail of all interactions.¹

With regard to patient medical records specifically, blockchain has the potential to analyze, identify, and fix discrepancies or mistakes.⁴ Furthermore, because patient information can be shared easily and securely between hospitals, labs, pharmacies, and clinicians, blockchain technologies have the potential to greatly enhance effective collaboration among healthcare providers.⁴

The potential for blockchain in healthcare has been a subject of excitement since 2016, when healthcare organizations started experimenting with its potential use cases.⁵ A major driver for adoption is blockchain’s ability to tackle the growing issue of medical errors — around one in 20 patients are exposed to preventable harm in medical care.^6,7

Creating a blockchain-based system for medical records that links with existing electronic health record software would allow patients and providers to have an overarching, single view of patient health records.⁶ This would reduce inefficiencies such as duplicate diagnostic tests, saving time and money for patients and healthcare systems. A single view of a person’s medical record would act as a comprehensive source of truth — allowing patients better access to, and control over, their patient data, creating a better experience for patients and healthcare providers.⁶ But how exactly would the link between blockchain and medical records work practically? And why would this technology make things more transparent between patients and providers? 

The key lies in the fact that actual patient data never goes on the blockchain. Instead, any new record that needs to be added — whether it be a doctor’s note, prescription, or lab test result — is translated into what’s known as a unique hash function (a small string of letters and numbers). This can only be decoded if the patient who owns the data gives their consent. If they do, the hash function is logged onto the blockchain as a transaction.⁶

This security technology protects sensitive data and ensures that it remains traceable and unaltered. In doing so, it helps to foster greater trust between patients and providers, and promotes a more patient-centric approach to the delivery of care.⁸

The use of blockchain technology in healthcare could redefine  the healthcare management landscape, offering the following benefits to patients and providers: 

• Safeguarding  patient privacy: Blockchain technology encourages autonomy and allows patients to take control of their own personal health data⁶

• Preventing fraud: Using blockchain in healthcare can help deliver transparency and traceability in healthcare supply chain systems, cracking down on fraud by ensuring the authenticity of medical products⁶

• Empowering patients: Giving patients control of their own health data may promote a sense of ownership and empowerment that could help strengthen the relationship between patients and providers⁶

• Minimizing the risk of data breaches: The rise of digitalization has come with an increased risk of data breaches.^8,9 However, blockchain technology addresses this issue by creating a complex network, in which data is fragmented and almost impossible to hack^6,8,9

• Advancing precision medicine: By securely sharing and verifying patient data, blockchain technology facilitates  personalized treatment plans based on accurate and comprehensive medical records⁴

Healthcare organizations have been adopting blockchain at an unprecedented rate, with several of them now using it to manage patient consent for data sharing, track health records securely, and ensure complete regulatory compliance with various privacy regulations.^2,9

Going forward, this adoption is not likely to slow down.^2,9 In fact, after the global blockchain technology healthcare market was valued at $7.04 billion USD back in 2023, it’s now expected to grow at an annual rate of 63% from 2024 to 2030.⁹ This is also consistent with a Statista report, which found that approximately 55% of healthcare applications will adopt blockchain for commercial deployment by 2025.²

In other words, blockchain technology is not just here to stay. It’s here to transform the world of healthcare management and delivery as we know it.