Common Misconceptions around Blockchain, and Tokenization in Healthcare

The healthcare industry is built on trust and reliability, and adopting to new technology many times seems like a risky gamble. When engaging with professionals in the healthcare industry, I often encounter a mixture of curiosity and skepticism regarding blockchain and tokenization. During discussions at conferences and casual conversations with doctors, researchers, and hospital administrators, I've noticed a recurring theme of misconceptions. One doctor confided that they were hesitant about blockchain, fearing it would expose patient records to the public, despite reassurances about its security features. A hospital administrator expressed concerns about the integration complexities with their legacy systems, equating blockchain implementation to "replacing the engine of a plane mid-flight." Increasing efforts to educate healthcare professionals about the benefits and workings of blockchain and tokenization can help dispel myths and build a more accurate understanding. In this article let me try and gently debunk some of the misconceptions that I have come across when discussing the advantages of blockchain and tokenization with the healthcare fraternity.

Misconception 1: Blockchain Means Public Data

Healthcare data stored on a blockchain is publicly accessible and compromises privacy.

I was quite surprised to see how many people think that if healthcare data is stored on a blockchain, it will be publicly accessible and compromise privacy. Contrary to the misconception that blockchain means public data, the technology actually allows for robust privacy controls essential for the healthcare industry. While blockchain data is transparent, healthcare-focused platforms use advanced encryption and tokenization to protect sensitive information. Patient data itself is not stored on the blockchain; instead, encrypted tokens representing the data are stored, while the actual data remains in secure, off-chain databases. Tokenization ensures that only authorized entities can access the actual data and that robust encryption techniques safeguard patient privacy.

Misconception 2: Blockchain Is Only for Cryptocurrencies

Blockchain technology is exclusively used for cryptocurrencies like Bitcoin.

Blockchain has versatile applications beyond cryptocurrencies, particularly in securing and streamlining data transactions. In healthcare, it can revolutionize data sharing, ensuring accuracy, security, and privacy. There are various applications of blockchain in healthcare, that are ensuring the integrity of medical records, managing pharmaceutical supply chains, and improving patient consent management.

Misconception 3: Tokenization Is the Same as Creating Cryptocurrency

Tokenization in healthcare means creating a new form of cryptocurrency.

Tokenization involves creating digital tokens that represent real-world assets or data, such as patient records, clinical trial data, or even access rights to medical facilities. Tokens are used to manage, secure, and streamline data exchange and transactions within the healthcare ecosystem. Tokenized patient data allows secure and efficient sharing between doctors and researchers without exposing sensitive information, enhancing both privacy and interoperability. Healthcare tokens are not currencies but secure digital pointers to encrypted data.

Misconception 4: Blockchain and Tokens Are Not Secure

Blockchain and tokenized systems are vulnerable to hacks and data breaches.

Blockchain technology is designed with security as a paramount feature, employing advanced cryptographic techniques to ensure data integrity and protection. Properly implemented tokenization further enhances security by ensuring that sensitive data is never directly exposed. This means patient data can be securely shared and tracked without the risk of tampering or unauthorized access, maintaining confidentiality while leveraging the benefits of blockchain.

Misconception 5: Blockchain Technology Is Too Complex

Blockchain technology is too complicated for practical use in healthcare.

While it's true that the underlying mechanics of blockchain technology involve complex cryptographic principles, its application in the healthcare industry is designed to be user-friendly and accessible. Blockchain platforms offer intuitive interfaces that healthcare providers can use without needing to understand the intricacies of the technology. For instance, securely sharing patient records or tracking the supply chain of pharmaceuticals can be as simple as clicking a button.

Just as healthcare professionals don't need to understand the technical details of MRI machines to use them effectively, they can leverage blockchain technology's benefits through straightforward applications and services designed to enhance security, efficiency, and patient care without requiring deep technical knowledge.

Misconception 6: Tokenization Will Lead to Data Misuse

Tokenization will result in misuse or unauthorized access to patient data.

Tokenization involves substituting sensitive data with unique identification symbols (tokens) that retain all the essential information about the data without compromising its security. Tokenization enhances data control and security, making it harder for unauthorized parties to access sensitive information. Each token is linked to encrypted data, ensuring that only authorized users can access it.

In healthcare, for example, patient data can be tokenized, ensuring that actual patient information is kept off-chain in secure, compliant databases. The tokens can then be used to access the data securely, ensuring privacy and compliance with regulations like GDPR and HIPAA.

Misconception 7: Difficult to integrate these technologies with legacy systems

Perceived difficulty of integrating these technologies with existing healthcare systems.

Many healthcare professionals believe that blockchain and tokenization require a complete overhaul of their current IT infrastructure, leading to significant disruptions and costs. Blockchain solutions, particularly those designed for healthcare, are often built with interoperability in mind. Standards like HL7 (Health Level Seven) and FHIR (Fast Healthcare Interoperability Resources) are used to ensure that blockchain can communicate effectively with existing EHR systems. Healthcare providers can adopt blockchain incrementally. Instead of a full-scale implementation, they can start with pilot projects targeting specific areas like patient consent management, supply chain tracking, or clinical trial data management. This approach minimizes disruption and allows institutions to test the technology's effectiveness before a broader rollout.

Conclusion

Dispelling the misconceptions around blockchain and tokenization in healthcare requires clear communication and education. By showcasing successful implementations and real-life examples and demonstrating that blockchain can work alongside existing systems can help the healthcare industry to move past the fear and realise that blockchain is NOT some kind of digital boogeyman lurking under the bed, ready to gobble up patient data at the first opportunity.

About the Author: Vishwajeet Jathar is one of the Co-Founders of HUMB - Healthcare Unified Medical Blockchain. With a passion for blockchain technology and its applications in healthcare, Vishwajeet is dedicated to exploring innovative solutions that bridge the gap between these two transformative fields.

HUMB Exchange is a fully regulated healthcare focused crypto exchange platform that lists innovative healthcare tokens and top cryptocurrency pairs for trading.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any organization. This article is intended for informational purposes only and should not be construed as advice.

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