There is a lot of talk about blockchain technology and how it will revolutionize life as we know it. While I am not sure how often any one person’s life can be “revolutionized,” blockchain is a cutting-edge technology that could be used in multiple industries, including healthcare. The following is an introduction to the concept.

Simply put, blockchain is a technology that allows data to be stored simultaneously on multiple computers. The information is distributed, but not copy-able or delete-able. There is only one owner to an individual piece of data. All transactions are encoded using cryptography, ensuring their safety. 

Paul Dughi, VP/general manager at WAAY-TV & AudiencePop, provides an explanation: 

“Picture a spreadsheet that is duplicated thousands of times across a network of computers. Then imagine that this network is designed to regularly update this spreadsheet and you have a basic understanding of the blockchain.”

Blockchain allows for peer-to-peer transactions without the need for an intermediary to facilitate (think no need for an eBay or Etsy). Instead, a Smart Contract is used.  A Smart Contract is computer code that defines the rules around a given transaction. Once the rules are met the transaction proceeds. All information surrounding the transaction, as well as the transition of any payment or product, is recorded on the blockchain. 

Potential healthcare uses for blockchain include the storage of a person’s health records encoded with a private key. The individual would then grant access to specific individuals or entities, e.g. their doctor or pharmacy. Validation of a completed procedure could be stored on the chain where the person’s insurance company could then access it and provide payment. Other cited uses include prescriptions, storage of test results and managing health supplies.

While widespread use of blockchain technology is still five to ten years away, there are blockchains already in existence across multiple industries with millions of dollars being invested. The promise of blockchain technology indicates that healthcare adoption is coming and that staying abreast of its evolution will be important for URAC in the coming years.