Impacts and Limitations of Blockchain Technology in the Healthcare Sector


Blockchain technology is even in the healthcare industry to address a number of key challenges, including data privacy, security, interoperability, and patient engagement.

Impacts and Limitations of Blockchain Technology in the Healthcare Sector

Let’s dive into the topic:

Improve Data Security

Corporations are using this innovative technology to improve data privacy and security. You know the significance of healthcare data! These are among the most sensitive and private data that exist, and it is subject to strict regulations regarding their use and disclosure.

We need a secure place to keep them safe, and blockchain technology provides that secure and tamper-proof record of all healthcare transactions. From patient records to billing information, we can save all the information and use them transparently whenever we need it.

Moreover, it helps to prevent data breaches and protect patient privacy while also enabling authorized parties to access the information they need to provide high-quality care.

Healthcare Industry Needs Interoperability

Interoperability is the ability of different healthcare systems and applications to exchange and use data seamlessly. Currently, healthcare data is often siloed and fragmented, making it difficult to share information across different providers and systems.

Blockchain technology provides a secure and standardized platform for sharing healthcare data, which improves coordination, and reduces duplication of tests and procedures. As a result, it helps to provide better care and overall outcomes for both parties.

Improve Patient Engagement in Healthcare.

Patients demand more control over their healthcare data and greater transparency in the process. The traditional methods are not enough, so blockchain has the solution.

It provides a secure and transparent platform for managing their healthcare data, which improves patient trust and engagement in their care.

For example, patients could use blockchain technology to manage their health records, share their data with providers, and participate in clinical trials.

Improve Healthcare Research and Development

By providing a secure and transparent platform for sharing healthcare data, blockchain technology enables researchers to access a larger and more diverse pool of data for their studies.

It helps to accelerate the pace of medical research and development, leading to faster and more effective treatments for patients.

While the technology is still in its early stages, it has the potential to improve the quality of care, reduce costs, and enhance patient outcomes.

According to a report by Allied Market Research, the global blockchain in the healthcare market is expected to reach $16.3 billion by 2031, growing at a CAGR of 40% from 2022 to 2031. Several healthcare companies and institutions have already adopted blockchain-based solutions, including Philips, Gem, and Hashed Health.

Limitations of Blockchain Technology in Healthcare Service

Indeed, there are certain challenges in using this technology in healthcare services. Some of the limitations are:


One significant limitation of blockchain in healthcare services is interoperability. Different healthcare systems use different data structures, and there is no standardization in place. This makes it challenging for blockchain technology to integrate into existing healthcare systems, as different systems cannot communicate with each other.
It causes silos (isolated points) where different healthcare providers are unable to share data with each other, leading to a fragmented system.

Data Privacy

Another limitation is data privacy. Blockchain technology is transparent and immutable. It means no one can erase or modify data on the blockchain, which is a challenge in healthcare services.
Patients may not want their healthcare data to be visible to everyone on the blockchain, and once it is recorded, it cannot be deleted. However, developers have different ways to solve this issue.


Blockchain technology is not designed to handle the volume of data that healthcare services generate. As more healthcare providers adopt blockchain technology, the number of transactions recorded on the blockchain will increase, leading to potential scalability issues. This could result in longer processing times and higher costs.

Technical Expertise

Adopting blockchain technology in healthcare services also requires technical expertise. Healthcare providers need to have a strong understanding of how blockchain technology works and how it may integrate into existing systems.
Healthcare providers may not have the necessary technical expertise to implement and manage blockchain technology, so they need training or hire blockchain experts for such tasks.

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