“Everything will be tokenized and connected by a blockchain one day”
— Fred Ehrsam
Definition
Blockchain is considered a promising technology for healthcare. As described in an earlier edition of Healthcare Enablers, the technology is difficult to define [1]. Blockchain is a database technology where digital information is not stored in a centralised location. Instead, every party has an identical copy of the ledger. Changes to the database are distributed to all parties like ‘blocks on a chain’, giving rise to a large network. A change becomes final as soon as the majority of the network has verified it. Blockchain allows for secure online transfer for values such as data or money because it is less fraud-sensitive than traditional database technologies. In addition, transactions are not dependent on a trusted third party such as a bank, insurance company or notary [2-5].
Applications & benefits
Blockchain offers the ability to give individuals secure ownership of their personal data and enables secure information exchange by patients and healthcare professionals [6]. The user gets to decide who can get access to their data and knows exactly what is being recorded or shared. In addition, the technology facilitates secure data exchange in the healthcare chain and reduces the administrative burden by automating processes via smart contracts and such [7]. Thanks to the integration of processes and data, error margins and transaction costs are reduced. Blockchain has the potential to improve the transparency, accuracy and efficiency of our healthcare system [8]. It is becoming increasingly clear what aspects of healthcare can truly benefit from the added value of this technology [9, 10]. This involves storage and administration of medical data and informed consent on the one hand [11]. On the other hand, it can be combined with the IoT in order to track and administer drug warehousing in order to secure the supply chain and organise it more efficiently [12].
Market
Blockchain is becoming a mainstream technology. This is underlined by the fact that more and more healthcare organisations are accepting payment in cryptocurrency. Over 23 different ‘healthcare’ cryptocurrencies are available globally at the time of writing [13]. And the capabilities of blockchain have been penetrating healthcare itself as well [14]. The global market value of blockchain in healthcare is expected to grow by 36.2% annually between 2021 and 2027. That will take the market value from $354.9 million in 2020 to $3.1 billion in 2027 [15]. The pharmaceutical industry will be responsible for over 44% of that market [16].
Driving forces
Increasing pressure on the healthcare system
Changing healthcare needs
Growing availability of (medical) data
Hindering forces
Lack of expertise
High costs (development, purchase, and maintenance)
Immaturity of the application
Questions remain with regards to the privacy, scalability and governance of the infrastructure. In addition, expertise is often lacking to apply blockchain to institutions or systems. Interest from the pharmaceutical industry involved in precision medicine is yet another driver for efficient data storage [17-19]. In addition, the development of blockchain in healthcare is stimulated by the growing availability of medical data.
Conclusion
Blockchain has enormous potential. Slowly but surely, applications of this technology are leaving the realm of experimentation and entering the phase of actual implementation into the healthcare process. Blockchain technology will contribute to the dismantling of data silos and the promotion of data interoperability, integrity and safety. The technology and its use thereby contribute to the empowered patient, system security and supply chains as well as the evolution of autonomous systems.
References
- Blockchain is niet voor iedereen de moeite waard. [online] Available at: https://www.kvk.nl/advies-en-informatie/innovatie/blockchain/ [Accessed 24 August 2021].
- Unal, F., 2021. Blockchain. Wat is het en wat is de kracht?, [online] Starapple.nl. Available at: https://starapple.nl/2021/04/20/blockchain-wat-is-het-en-wat-is-de-kracht/ [Accessed 24 August 2021].
- Murray M., Blockchain explained, Reuters, 2018
- Deloitte United States. 2021. Blockchain: Opportunities for health care | Deloitte US. [online] Available at: https://www2.deloitte.com/us/en/pages/public-sector/articles/blockchain-opportunities-for-health-care.html [Accessed 24 August 2021].
- Legrand, J., 2021. The Future Use Cases of Blockchain for Cybersecurity. [online] Cm-alliance.com. Available at: https://www.cm-alliance.com/cybersecurity-blog/the-future-use-cases-of-blockchain-for-cybersecurity [Accessed 24 August 2021].
- Rosic A., What is Blockchain Technology? A Step-by-Step Guide For Beginners, 2018
- Van Duivenboden J., Blockchain in de Zorg, Nictiz, 2017
- Linn LK, MB., Blockchain for health data and its potential use in health IT and health care related research. 2016 [Available from: https://www.healthit.gov/sites/default/files/11-74-ablockchainforhealthcare.pdf]
- Finextra, Blockchain in Healthcare: make the Industry better, 2017
- Kaptein, Blockchaintechnologie in de gezondheidszorg, 2017
- Bean R., Will Blockchain Transform Healthcare?, 2018
- Arnold A., Is Blockchain The Answer To A Better Healthcare Industry?, 2018
- Merchant, S., 2021. See How Healthcare Cryptocurrencies Are Transforming Healthcare management. [online] AIM. Available at: https://www.aimblog.io/2021/01/29/see-how-healthcare-cryptocurrencies-are-transforming-healthcare-management/ [Accessed 24 August 2021].
- Hasselgren, A., Kralevska, K., Gligoroski, D., Pedersen, S. and Faxvaag, A., 2021. Blockchain in healthcare and health sciences. [online] Available at: https://www.sciencedirect.com/science/article/pii/S138650561930526X [Accessed 24 August 2021].
- MarketWatch. 2021. Blockchain in Healthcare Market Size 2021 Global Share, Business Growth, Trend, Segmentation, Top Key Players Analysis Industry, Opportunities and Forecast to 2027. [online] Available at: https://www.marketwatch.com/press-release/blockchain-in-healthcare-market-size-2021-global-share-business-growth-trend-segmentation-top-key-players-analysis-industry-opportunities-and-forecast-to-2027-2021-08-23 [Accessed 24 August 2021].
- GM Insights, Blockchain technology in the healthcare market, 2020 [Available from: https://www.gminsights.com/industry-analysis/blockchain-technology-in-healthcare-market]
- Harvard Business Review. 2021. Why Big Pharma Is Betting on Blockchain. [online] Available at: https://hbr.org/2020/05/why-big-pharma-is-betting-on-blockchain [Accessed 24 August 2021].
- Espeo Blockchain, How a blockchain application can work for the pharmaceutical supply chain, [Available from: https://espeoblockchain.com/pharmaceutical-supply-chain/]
- Genetics, H. and Medicine, P., 2021. What is precision medicine?: MedlinePlus Genetics. [online] Medlineplus.gov. Available at: https://medlineplus.gov/genetics/understanding/precisionmedicine/definition/ [Accessed 24 August 2021].