Blockchain in Healthcare

Blockchain in Healthcare and It’s Significance

Developed in 2008 by Satoshi Nakamoto, Blockchain was used as the main part of the digital currency called bitcoin. If we keep the technicality aside, Blockchain in Healthcare is basically a distributed and a write-once-read-only record that includes database exchanges and transactions.


These can be distributed as well as shared among authorized consumers who can add to it when required. The blockchain is different because these authorized consumers can’t delete or alter a record. Hence, no transaction can happen without the validation by the users.

How does Blockchain function?

The blockchain is a peer-to-peer distributed or shared ledger technology and has three major components:

Distributed network:

Where every member saves an identical blockchain copy and is allowed to validate and/or certify the transactions digitally for the network.

Shared ledger:

Where the members run algorithms and the verification of the proposed transaction is done in order to add it to the shared ledger.

Digital transaction:

In this, every transaction is formed into a block. Every block consists of a cryptographic hash in order to add all the transactions in a chronological, linear manner.

Blockchain in Healthcare:

The most important information in healthcare is distributed across various systems and also, which may not be accessible sometimes when required the most. The present healthcare system has mostly been called inadequate in order to handle any information exchange and needs certain modifications.

Blockchain in Healthcare

Blockchain, on the other hand, has gone above the innovation nudge and is now at the top of expectations as per the latter Gartner Hype Cycle. It could possibly change how we see healthcare along with the data.

Why incorporate Blockchain in Healthcare?

Blockchain has the absence of a central administrator. Also, a database is a material thing that consists of bits and bytes. Also, if the components of the database are saved in a specific system’s physical memory, anyone can corrupt the data in it that has got the access to that system.

Hence, with Blockchain, all the users have a control of their information as well as transactions. Since healthcare manages the patient’s private information and needs the information quick sometimes. Blockchain can organize these records and validate their sharing securely. Blockchain also offers security, data privacy as well as scalability.

Bitcoin & Blockchain

The idea of using Blockchain in healthcare could be an evolutionary journey in which Blockchain is executed step-by-step.

How to Use Blockchain in healthcare?

Here we have 4 ways in order to utilize the Blockchain in healthcare:

Single, longitudinal patient records

Longitudinal patient records which include compiling episodes, lab results, treatments etc. could be achieved using the Blockchain in healthcare.

Claims adjudication

As blockchain functions on a validation-based exchange, the claims could be verified automatically. It happens when the network agrees upon the way of executing a contract.

Management of supply chain

Blockchain-based contracts can help healthcare organizations in order to monitor supply-demand cycles via the following:

  • How is the transaction happening?
  • If a contract is successful,
  • If there are any delays and more.


It can be realized using the sophisticated APIs in order to make EHR interoperability as well as data storing a trustable process. The concept of Blockchain can change the revenue cycle management, clinical trials, drug supply management, prevent frauds etc.



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