Blockchain in Healthcare: Breaking Barriers & Redefining the Industry

In 2017, a ransomware attack known as WannaCry crippled the UK’s National Health Service (NHS), locking doctors out of patient records and halting surgeries. Over 19,000 appointments were canceled, and the system’s vulnerability cost millions.

Approximately 60+ NHS trusts were hit. This was not an isolated event. Healthcare data breaches reached an all-time high in 2023, impacting over 133 million records in the US alone (HIPAA Journal, 2024).

These events highlight a pressing issue — healthcare systems are fragmented and vulnerable, often leaving patients powerless over their data. Unsurprisingly, medical businesses grapple with the mounting pressure of data security amidst fierce market competition. This is where blockchain in healthcare proves to be a boon for caregivers and patients alike. How?

Blockchain technology enhances transparency and security in healthcare while giving patients complete control over their data. It also streamlines the management of health records and transactions, making data exchange more efficient and trustworthy (details later).

Through blockchain healthcare application development, the healthcare industry facilitates secure and transparent sharing of medical records, enables seamless interoperability among healthcare providers, and revolutionizes supply chain management for pharmaceuticals and medical devices.

Considering how big players like IBM, Microsoft, and Google are investing in blockchain research for healthcare, it’s clear this technology holds immense promise.

So, without further ado, let’s explore how blockchain development services in healthcare can revolutionize the sector. We’ll also discuss blockchain use cases in healthcare, and some challenges that need to be overcome before blockchain technology in the healthcare sector can be widely adopted. So, without further ado, let’s get started!

Capture the potential of the expanding blockchain market in healthcare, projected to hit $214 million revenue by 20230

Embrace the forefront of healthcare innovation using blockchain with us 

Schedule a Consultation Call

How is Blockchain Transforming the Healthcare Industry?

Blockchain is not just a buzzword here. The technology has moved beyond the hype, proving itself as a transformative force to address real-world failures that healthcare can no longer afford to ignore. Blockchain technology brings several benefits to the healthcare industry, including data security, data monitoring, and more. In this section, we will discuss some of the crucial advantages of blockchain in healthcare and ways that this technology could be used to improve the industry:

Improved Data Security

In the past few years, several incidents of sensitive medical data have been hacked or stolen. For instance, in 2023, the global average data breach cost reached $4.45 million, witnessing an increase of 15% over the past three years.

Blockchain technology can help resolve such data security and related issues with ease. Blockchain is a distributed database that allows for secure, transparent, and tamper-proof healthcare data management. With the implementation of blockchain technology in healthcare, patient data is stored in a decentralized network rather than on a central server. This makes it much more difficult for hackers to access or tamper with medical data.

In addition, blockchain allows different healthcare providers to share data with each other while maintaining patients’ privacy. This is because blockchain data is encrypted and can be accessed only with authorized permission. Finally, blockchain can help to reduce fraud and corruption in the healthcare industry by providing an audit trail of all transactions.

For example, Cerner, a widely recognized healthcare entity, aligns with a blockchain startup to enhance healthcare data management and interoperability. Through initiatives like the Cerner Ignite Health Innovation Challenge, Cerner develops solutions to address data exchange challenges and to improve care coordination.

24/7 Data Monitoring

Continuous data monitoring is a must-have criterion in the healthcare sector when it comes to managing and optimizing electronic health records. Many human lives are at stake daily, and even a slight margin of error can have devastating consequences.

Starting from the patient’s blood pressure readings to the doctor’s prescriptions, every bit of patient health data needs to be monitored and assessed 24/7. However, the existing healthcare infrastructure is often unable to provide this level of data availability for various reasons, such as interoperability issues, data breaches, etc.

This is where blockchain comes in. This technology can provide 24/7 data availability and help improve electronic health records management with its distributed nature. In addition, blockchain can help solve interoperability issues by providing a standardized data-sharing platform between healthcare providers.

Improved Clinical Trials

As per a report by Markets and Markets, the revenue of the global clinical trials market was $60.76 billion in 2024 and is anticipated to reach $101.86 billion by 2030, with a CAGR of 8.9% during the forecast period from 2025 to 2030. Various factors, like the rising number of clinical trials, growing demand for outsourcing R&D, and drug commercialization, are driving this market’s growth.

However, the clinical trial process is often lengthy and complicated, with numerous stakeholders involved. This can lead to inefficiencies and delays, which can impact the success of clinical trials. In addition, clinical trial data is often siloed, making it difficult to share information.

Blockchain technology in healthcare has the potential to help solve these problems by providing a secure and transparent way to store and manage clinical trial data. With blockchain, each step of the clinical trial process would be recorded on the blockchain, making it easy to track data and identify errors. In addition, blockchain could be used to verify the identity of patients and doctors, ensuring that only authorized individuals have access to clinical trial data.

Improved Drug Safety

Adverse drug reactions are a major problem in the healthcare industry. They are responsible for thousands of hospitalizations and deaths each year. In addition, the cost of treating adverse drug reactions is estimated to be billions of dollars annually.

A blockchain technology database can be used to track the provenance of drugs throughout the supply chain. Blockchain integration in the supply chain would allow for the early detection of counterfeit or adulterated drugs. Blockchain is also used to track patient outcomes, allowing for the early detection of adverse reactions.

Improved drug safety is one of the most integral ways blockchain could transform the healthcare industry.

Smart Contracts

Smart contracts in blockchain can potentially streamline several different processes within the healthcare industry. For example, they could be used to automatically process insurance claims, verify eligibility for benefits, and schedule appointments.

Moreover, smart contracts could be used to manage patient data and records, ensuring that only authorized individuals can access confidential information.

Claims and Billing Management

Claims and billing management is part of filing and processing the medical claim related to the patient’s diagnosis, medications, and treatments. There have been several incidents where the medical files were compromised, which led to fraud and theft cases.

[Also Read: How Much Does It Cost to Build a Custom Medical Billing Software?]

Blockchain makes it easy to eliminate these instances as the technology works around recording medical data and storing it in the open digital ledger so that if any change is made in the information, it is visible to everyone who is a part of the blockchain.

Interoperability

Blockchain technology fundamentally transforms how medical data is exchanged across healthcare systems and providers. Traditionally, healthcare data has been siloed within individual institutions, leading to fragmentation and inefficiencies in care delivery.

However, with blockchain, data can be securely shared and accessed decentralized, enabling seamless interoperability between disparate systems. This healthcare data interoperability enhances care coordination by allowing medical professionals to access comprehensive patient records regardless of the source, leading to more informed decision-making and improved patient outcomes.

[Also Read: Blockchain Interoperability: The Key to Connect Siloed Blockchain Networks]

Facilitating Monetization of Health Data

Blockchain technology offers businesses a unique opportunity to capitalize on health data innovatively. By securely anonymizing and sharing patient data through blockchain-based platforms, companies can gain access to valuable insights for research and development purposes.

This responsible use of health data not only encourages investment in medical innovation but also drives innovation in healthcare by facilitating the discovery of new treatments, therapies, and personalized healthcare solutions.

Want to introduce a decentralized blockchain solution to your healthcare business?

We are here to help!

Explore Our blockchain Services

How Blockchain Helps Healthcare Businesses Comply with HIPAA and Other Data Privacy Regulations

HIPAA (Health Insurance Portability and Accountability Act) is a US healthcare law that imposes strict requirements on how patient data can be used and shared. Blockchain technology helps healthcare organizations comply with HIPAA and other data privacy regulations in various ways. Let’s explore how blockchain can play a pivotal role in achieving compliance within the healthcare sector.

• Blockchain can track the movement of pharmaceuticals and medical devices throughout the supply chain. Each step is recorded on the blockchain, creating a transparent audit trail. This helps identify and prevent counterfeit drugs and devices from entering the healthcare system, ensuring patient safety and compliance with regulations against counterfeit goods.
• Blockchain facilitates secure and standardized data exchange between different healthcare institutions. This allows for better care coordination, as doctors can access a patient’s complete medical history from various providers. Additionally, it simplifies compliance with data-sharing regulations that promote patient information exchange.
• Blockchain stores patient data in encrypted blocks, making it tamper-proof. Any changes require updating the entire chain, leaving a verifiable history for auditors. This ensures data integrity and compliance with HIPAA regulations in the US, which mandates data security.
• Blockchain allows patients to control their data access. They can grant specific permissions to healthcare providers, researchers, or other authorized parties. This streamlines the consent process and ensures compliance with regulations requiring patient authorization for data sharing.
• Regulatory bodies can leverage blockchain for secure and automated reporting from healthcare institutions. This reduces the administrative burden for hospitals and clinics while ensuring timely and accurate submissions and meeting regulatory reporting requirements.

Also Read: How much does it cost to build a HIPAA-compliant platform for medical supplies delivery?

Now that we know how blockchain helps businesses comply with HIPPA regulations in the healthcare sector let us look into some scenarios that validate blockchain use cases in healthcare.

Game-Changing Use Cases of Blockchain in Healthcare

While blockchain healthcare startups are implementing some of the blockchain applications in healthcare, some are being piloted by large organizations to secure their business. Let us look into some real-world applications of blockchain in the healthcare industry.

Drug Traceability

Drug traceability tracks products throughout the supply chain, from manufacturers to patients. Blockchain platforms for healthcare data can transform drug traceability by providing an immutable record of drug product movements. Currently, most drug traceability systems rely on a centralized database that can be tampered with or hacked.

A blockchain-based system would provide a decentralized, tamper-proof record of all drug product movements. This would allow regulators to identify and recall counterfeit products quickly. In addition, blockchain, combined with artificial intelligence and the Internet of Things, helps track drug products in real-time. This would allow a more efficient and effective response to drug shortages or recalls.

In this regard, Walmart, IBM, Merck, and KPMG collaborated to pilot a blockchain solution to help track pharmaceutical drugs throughout the supply chain. This project aimed to ensure that the drugs were not counterfeit and met all the quality standards.

Electronic Health Records

Another important use of blockchain in healthcare can be seen in electronic health records (EHR) management. The technology can help improve patient care, reduce costs, and save lives. However, electronic health records also come with a number of challenges. One of the most significant challenges is data security.

Currently, electronic health records are stored on central databases that are vulnerable to hacks and data breaches. This puts patient data at risk of being compromised. Blockchain in healthcare has the potential to address this challenge by providing a decentralized, secure way to store electronic health records.

With blockchain technology, patients can access their medical information, ensuring only authorized individuals can view it. Many healthcare startups are already working on implementing blockchain-based electronic health record solutions.

For instance, the UK-based blockchain healthcare startup Medicalchain developed a platform that helps store health records and share health data securely. Another example is Patientory, which is working on a blockchain-based electronic health record solution for users to take control of their health outcomes.

Blood Plasma Supply Chain

Blockchain for healthcare can effectively streamline the plasma supply chain and ensure that all stakeholders can access accurate, up-to-date information. Plasma derivatives are vital components of many life-saving treatments. However, the current supply chain is complex, with numerous hospitals and blood banks across the globe participating in the collection, processing, and distribution of plasma.

Unfortunately, this system is often set by inaccuracies and inefficiencies, leading to critical shortages of plasma when patients need it most. The shortage of plasma in the market can have serious consequences with increased mortality rates.

Thankfully, blockchain technology applications can solve these problems by providing a decentralized platform where all stakeholders can share information and track plasma shipments in real-time. By doing so, blockchain could ensure patients always have access to the lifesaving treatments they need.

Real Example: Canadian Blood Services (CBS), a charitable organization, uses blockchain technology to provide real-time traceability and visibility of blood products throughout the system.

Prescription Drug Monitoring

Blockchain technology applications in healthcare also extend to prescription drug monitoring. It is estimated that 18 million people ages 12 and older have used prescription drugs for non-medical reasons in 2023, which is more than 6% of the US population.

Blockchain for healthcare can help solve this problem by providing a secure and tamper-proof way to track prescription drugs.

With blockchain, each time a prescription drug is dispensed, a record is created and stored on the blockchain. This would allow authorities to track the movement of prescription drugs and identify patterns of abuse. In addition, blockchain could be used to verify the identity of patients and doctors, ensuring that only authorized individuals have access to prescription drugs.

Real Example: One startup working on a blockchain solution for electronic prescription solutions is BlockMedx, which is developing a platform that allows patients to store and manage their prescriptions securely. The BlockMedx platform would also allow pharmacists to verify the authenticity of prescriptions and track the movement of prescription drugs.

Medical Staff Credential Verification

Another important use of blockchain in healthcare is medical staff credential verification. According to Statista, there were more than 1,109,460 licensed physicians in the US in 2024. With such a large number of medical professionals, it can be difficult to verify the credentials of each individual.

So, blockchain technology is being used by an increasing number of organizations to verify the credentials of medical staff. The use of blockchain in credentialing allows organizations to quickly and securely verify the qualifications and experience of medical staff.

Moreover, blockchain provides a permanent record of credentialing information, which can be used to track the career history of medical staff. As a result, blockchain-based credential verification is becoming essential to ensuring the quality of care in healthcare organizations.

Real Example: An example of blockchain in healthcare to verify medical staff credentials is Tampa General Hospital. The hospital efficiently verifies practitioner credentials through a trusted, decentralized network by partnering with ProCredEx, built on R3’s Corda blockchain platform. This approach reduces the traditionally lengthy and costly credentialing process, ensuring faster onboarding of qualified healthcare professionals while maintaining data integrity and security.

Breakthrough in Genomics

Genomics holds immense promise in transforming healthcare, from personalized treatments to disease prevention. However, a major barrier remains: patients’ reluctance to share their sensitive genomic data due to privacy concerns. According to Emergen Research, the global blockchain in genomics market size is expected to reach $1,258.3 million by 2027, reflecting the growing demand for secure data solutions.

Blockchain technology addresses this challenge by enabling decentralized platforms where patients can safely share their genomic data, maintaining complete control over access while supporting critical research and innovation.

Real Example: Nebula Genomics is a leading player using blockchain to create a decentralized genomic data-sharing platform. It is helping to build a giant genetic database that can be used for medical research. The company allows patients to share their genomic data with researchers in return for compensation.

Another company, EncrypGen, is using blockchain to create a secure database of genomic data. The EncrypGen platform allows patients to control who has access to their genomic data and to be compensated for sharing their data.

Supply Chain Management

The healthcare industry depends on the global supply chain of medical products and services. However, issues like counterfeit drugs, lack of transparency, and inefficient tracking pose significant challenges. Blockchain applications in the supply chain help solve these challenges by enhancing supply chain security and accountability.

With tools like RFID and EPCIS (Electronic Product Code Information Services), blockchain ensures the authenticity of active pharmaceutical ingredients and enables end-to-end traceability. This is why several companies are now developing healthcare blockchain solutions to combat counterfeit drugs and ensure compliance with medical standards.

A US-based company, Chronicled, developed a platform that uses blockchain and the Internet of Things (IoT) to track the movement of medical supplies. The Chronicled firm allows manufacturers, distributors, and pharmacies to track the movement of medical supplies in real-time, ensuring that only authorized individuals have access to them.

Real Example: Pfizer, a renowned organization, harnesses blockchain technology for supply chain management. Pfizer utilizes blockchain to enhance supply chain transparency, tracking pharmaceutical products from manufacturing to distribution. This ensures authenticity, reduces counterfeit drugs, and improves patient safety.

IoT Security for Remote Monitoring

The healthcare industry increasingly relies on IoT to monitor patients remotely. IoT devices, such as wearable sensors, can collect a wide range of data, including heart rate, body temperature, and blood pressure. This data is then transmitted to a central location where healthcare professionals can monitor it.

However, IoT devices are often insecure, making them vulnerable to hacking and data breaches. This is a serious concern in the healthcare industry, as hackers could access sensitive patient data. Blockchain in healthcare can help solve this problem by providing a secure way to store and share data. In addition, blockchain can be used to create secure IoT networks.

Also Read: How to Ensure Cybersecurity in the Age of IoT

Real Example: The IOTA platform is designed to provide a secure environment for IoT devices. The IOTA platform uses blockchain technology to create a tamper-proof data ledger. This ledger can store data from IoT devices and track their movement.

Now that we know some of the cases of blockchain technology in healthcare let’s look at some of the challenges that need to be addressed before blockchain and healthcare truly go hand in hand.

Don't be the last one to tap into the world of blockchain solutions for your business

Let us help you fit blockchain into your business model.

Talk To Our Experts

Challenges and Solutions Associated with Implementing Blockchain Technology in the Healthcare Industry

Despite the potential benefits of blockchain in healthcare, there are several challenges of implementing this technology. Some of the most common challenges of blockchain in healthcare and the tactics to overcome them are listed below:

HIPAA Compliance and Data Privacy Regulations

Challenge: HIPAA, a US healthcare law, imposes strict requirements on how patient health information (PHI) is collected, stored, used, and shared. Healthcare organizations often struggle to maintain compliance, especially when managing sensitive data across multiple systems and stakeholders.

Solution: Blockchain technology offers a secure, transparent, decentralized framework that helps healthcare organizations comply with HIPAA and other privacy regulations. Through encryption, permissioned access, and immutable records, blockchain ensures that only authorized parties can access patient data.

Data Immutability

Challenge: The fact that blockchain does not allow changes to be made once information is uploaded is both a boon and a bane. While on the one hand, immutability ensures heightened security, on the other, it restricts scalability.

Solution: A practical solution to this immutability issue lies in enhancing the existing architecture, such as recording only the changes rather than entire datasets or adopting smart on-chain and off-chain data partitioning strategies to balance immutability with adaptability.

Data Size

Challenge: Without a doubt, the amount of medical data healthcare stakeholders generate is large. Because of the block size limit, these numbers can easily surpass the data stored in a typical blockchain architecture.

Solution: A well-planned architecture incorporating both on-chain and off-chain data storage is essential for achieving optimal system performance and compliance. This approach thoroughly analyzes data types to ensure alignment with specific domain requirements, maximizing the solution’s effectiveness.

Thus, a well-planned architecture will prove to be an obvious clever solution with the system’s components made by storing the on and off-chain data after carefully studying the data types, which would make sense in the respective domains. For example, combining the on-chain and the off-chain data in either the conventional RDBMS/No-SQL or in an IPFS can solve the data limit problem.

As we progress toward a new digital era, healthcare organizations must keep up with the latest technology trends and invest wisely in blockchain for healthcare. With its potential to revolutionize healthcare delivery, blockchain is fast becoming a critical investment to change how healthcare is delivered. So, let’s see the future of blockchain technology in healthcare.

What is the Future of Blockchain in Healthcare?

Blockchain’s journey in healthcare has evolved steadily, starting with integrating into mobile apps and gradually expanding into more complex systems. Here’s a look at how it has developed and what lies ahead:

Early Adoption: Blockchain initially made its mark through mobile healthcare apps, which granted patients more control over their data, facilitated advancements in research and development, and enhanced service delivery. This set the stage for the technology to become more standardized, as proven by its incorporation into today’s healthcare supply chains.

Current Standardization: The technology has since progressed into more standardized use cases, such as securing today’s healthcare supply chains. Its ability to ensure authenticity and transparency has made blockchain a trusted solution for combating counterfeit drugs and tracking medical supplies.

Future Focus on Widespread Adoption: The focus will be to achieve broader technology adoption, where medical authorities’ acceptance and regulation of blockchain will be a clear indicator of progress.

Decentralized Healthcare Ecosystem: In the coming years, businesses can expect a decentralized healthcare system where blockchain technology is fully integrated into business processes, optimizing the healthcare landscape.

Medical Blockchain Market: According to Grand View Research, the global blockchain technology in the healthcare market generated a revenue of $11+ million in 2024 and is projected to cross $214 million by 2030. This substantial CAGR of 63.3% during the forecast period highlights the burgeoning demand for blockchain solutions for the healthcare sector.

Enhanced Data Interoperability: One major advancement will be increased patient data interoperability. This will allow seamless information sharing across various healthcare providers while ensuring data security and patient privacy.

Health Information Exchanges (HIEs): Another future trend could be the rise of blockchain-enabled health information exchanges, allowing healthcare professionals to manage electronic medical records more efficiently.

Transparent and Secure Pharmaceutical Supply Chains: Blockchain will also enhance the transparency and security of pharmaceutical supply chains. This will reduce the risk of counterfeit drugs and ensure the quality and authenticity of medical products.

Empower Your Business with Appinventiv’s Cutting-edge Blockchain Services for Healthcare

The advantages of integrating blockchain in healthcare present distinct opportunities to simplify processes, facilitate trustless collaboration, and establish secure and immutable data. So, if you are ready to imbibe the change in your organization and adopt the trending blockchain solutions for healthcare, partner with Appinventiv, a reputed and reliable app development company offering custom healthcare blockchain development services to scale your business. 

Our team of 1600+ tech experts leverages blockchain’s benefits to deliver next-generation healthcare mobile app development services that ensure data security, transparency, and efficiency. Our custom healthcare solutions have powered innovation for platforms like Soniphi, Health-e-People, DiabeticU, etc., which are backed by enhanced transparency and optimized processes.

Connect with us to deliver innovative blockchain-powered solutions that drive engagement and enhance the user experience in healthcare.

FAQs

Q. What is blockchain technology in healthcare?

A.Blockchain technology in healthcare refers to a decentralized digital ledger system that securely records and stores patient data and transactions. It offers transparency, immutability, and security, enabling the secure exchange and access of medical information among healthcare providers while ensuring patient privacy and data integrity.

Q. How is blockchain changing the healthcare industry?

A. Blockchain and healthcare intersect at the forefront of technological innovation, promising to transform data management, privacy, and interoperability in the medical field. It facilitates secure sharing of medical records, enables efficient pharmaceutical supply chain management, and supports innovative solutions like telemedicine and patient-driven health records.

Q. How does blockchain improve patient privacy?

A. The convergence of blockchain and healthcare heralds a new era of data security and patient empowerment. Blockchain improves patient privacy by providing a secure and transparent method for storing and sharing healthcare data.

Each transaction recorded on the blockchain is encrypted and linked to previous transactions, creating a tamper-proof and auditable record. Patients can also have greater control over who can access their data and grant permission for specific parties to view or use their information.

Q. What is the purpose of blockchain technology in healthcare?

A. Healthcare blockchain aims to enhance data security, ensure transparency, and give patients greater control over their health information. It helps securely manage medical records, improve data sharing between healthcare providers, reduce fraud in the pharmaceutical supply chain, and streamline administrative processes. Blockchain for healthcare ultimately leads to more efficient and patient-centric care.