Blog, cryptocurrency

Three ways blockchain will reform healthcare

Eliminating errors, securely managing payments, at minimal cost

“At the Melbourne Senior Entrepreneur meetup group on Wednesday 18th October, two guest speakers broke the topic down into layman’s language.”

The guest speakers explained –

  • How the current financial system works.
  • How blockchain and cryptocurrency can solve bankings current problems.
  • How health industry will benefit from the implementation of blockchain technology.

How the current financial system works

Around 12,000 BC most important possession became cattle and grain.

Banks were originally run by groups of merchants who made loans of grain and cattle to farmers, and merchants who traded between cities.

Profits were made by the bankers by either charging interest, or fees.

There are three main problems with the traditional banking system which has evolved over centuries –

  • The high risk of stealing (bank heists, counterfeiting, fraud).
  • The need for a physical, centralised authority (bank) that all transactions had to go through – giving one body a large amount of power.
  • If one traditional bank goes broke, it risks dragging the entire country into recession or even bankruptcy.

How blockchain can solve bankings current problems

Blockchain keeps the data secure by encrypted keys and a distributed ledger that records every transaction across a large number of users. This virtually eliminates errors.

How health industry will benefit from the implementation of blockchain technology

At present, up to 40% of healthcare provider data records are filled up with errors or misleading information. On top of that, between 2015 and 2015, over 140 million medical records in the USA were hacked.

One third of Western countries medical bills are estimated to be wasted on fraud, over servicing and unnecessary tests. The USA lost over $30 million in medical fraud during 2016. Meanwhile the annual loss in counterfeit pharmacy medications is 200 billion annually.

With blockchain, medical records will be accurate and available to everyone the patient delegates as able to view their information.

Meanwhile the health services supply chain can be secure, transparent and accountable.

References

This Is Why Blockchains Will Transform Healthcare – Forbes 29th November 2017
Pharma’s broken business model: An industry on the brink of terminal decline – CB insights 28th November 2017

‘56% of healthcare executives expect to implement a commercial blockchain solution by 2020’. This Is Why Blockchains Will Transform Healthcare

© Wikihospitals October 2018

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