In addition to Bitcoin and other digital currencies, blockchain technology can also be used in other fields such as data storage. In addition to charity and supply chain, the medical insurance field is the most discussed application case. So, what are the characteristics of blockchain that make it so applicable in the field of medical insurance?

Advantages

Some characteristics of the blockchain make it It can securely record digital currency transaction data and also store medical information. Since the vast majority of main chains are distributed systems and use encryption algorithms to record and protect data information, it is extremely difficult for anyone to invade and modify the data without the authorization of other participants. Therefore, the non-tamperable feature allows blockchain to become a database for recording medical information.

In addition, this point-to-point architecture allows patient information to be updated synchronously across the entire network, even if the data is stored in different computers. In fact, every node has a copy of the information stored on the entire chain, and these nodes ensure timely updates and accuracy of information through regular communication. Therefore, decentralization and data distribution are also important aspects.

It is worth mentioning that the blockchain is a distributed system but not always a decentralized system (in terms of management model). Decentralization is not binary. It entirely depends on how these nodes are distributed in the overall architecture. Different distributed systems also present different degrees of decentralization. In the field of medical insurance, blockchains are private network systems, and those public chains are usually used as ledgers for digital currencies. Although anyone can join the public chain, the private chain is only managed by a small number of nodes.

Potential advantages

Increased security

As mentioned earlier, the most important role of blockchain technology in the field of medical insurance is to create a secure, unified, distributed database. Because blockchain data cannot be tampered with, data security will no longer be a concern. Therefore, blockchain technology can be used to register and track the medical data of thousands of patients.

Unlike traditional databases that rely on a centralized server, the use of a distributed system can greatly improve the security of data exchange and reduce the costs incurred by current servers. The decentralized nature of blockchain makes it less prone to technical problems and more resistant to risks in the face of external attacks. The security features provided by blockchain networks can be fully utilized in the medical field to combat hacker intrusions and ransomware attacks.

Interoperability

Another benefit of using blockchain to record medical data is the ability to Improve the interoperability of various clinics, hospitals and other medical service institutions. Technical differences often make it difficult to share data between agencies. However, blockchain can perfectly solve this problem. As long as it is an authorized node, it can enter the database of medical records and even drug distribution records. Unlike traditional servers that aggregate all internal data of a single node, blockchain technology allows everyone to participate in a database at the same time.

Accessibility and transparency

In addition to simplifying the process of data sharing, the blockchain system has also greatly improved Improve patients’ accessibility and transparency of their own medical information. Under certain conditions, confirming the need to modify patient records can also ensure data accuracy. If used properly, such a verification mode can provide additional security and can also eliminate errors caused by human factors and resist cyber attacks.

Reliable supply chain management

Blockchain can provide a reliable method to Tracking the flow of drugs from production to sales can effectively solve the problem of drug fraud. Combined with IoT devices, blockchain can also be used to determine the quality of medicines by measuring external factors such as temperature to determine storage and transportation conditions.

Insurance fraud protection

Blockchain technology can also be used to combat health insurance fraud , each year, health insurance fraud consumes approximately $68 billion in the U.S. health insurance system. The data stored on the blockchain is immutable, and this data (including expense details) is also shared with insurance providers to prevent fraud.

Clinical trial recruitment

Another application in the medical insurance field is blockchain technology Used to improve the quality and efficiency of clinical trials. Medical data on the chain can allow clinical trial recruiters to identify which patients are suitable for testing. Such a recruitment system could massively improve the registration system for clinical trials, because patients who are unfamiliar with a drug will never have the opportunity to participate in a trial of that drug. During the experiment, the blockchain can also ensure that experimental data is collected accurately.

Potential limitations

Although blockchain technology can bring many benefits, but there are still many barriers before it can be widely used in the medical industry.

Compliance

Take the United States as an example. Medical insurance companies interested in blockchain technology need to comply with current data regulations. , such as HIPAA. Simply put, HIPPA enumerates relevant standards for data storage, sharing and protection in the medical field. Therefore, in order to be fully compliant, U.S. companies will have to deploy customized blockchain information recording systems to increase privacy and reduce accessibility.

Initial budget and development speed

From the supplier's perspective, the blockchain The application of technology requires huge initial investment, which also hinders its large-scale practical application. In addition, in terms of transfer speed, distributed systems are slower than centralized systems, because a large blockchain network has thousands of nodes, which requires more time to transmit and synchronize data. , this is a problem that has to be considered for large databases that store millions of patient data, especially for large image files (X-rays, MRI).

Conclusion

From uploading and sharing immutable medical data to improving in the pharmaceutical supply chain Due to its transparency, blockchain technology has a clear application direction in medical insurance. Despite some technical, logistical and compliance challenges, the practical implementation of these systems will play a pivotal role in the future of healthcare.