Blockchain technology has expanded beyond cryptocurrency and is now being used in a variety of applications, including decentralized databases that can prevent counterfeiting through transparency and security.
These data security features are especially important for the healthcare sector, where blockchain technology helps protect data, improve data integrity, and give patients more control over their data.
It also improves transparency in the supply chain and ensures the authenticity of medicines. Blockchain also has the potential to enhance biomedical research by aiding in medical identification and simplifying data storage and exchange.
Blockchain in healthcare: Germany’s untapped potential?
Blockchain technology offers numerous benefits, but its application in the German healthcare sector is rare.
The German Federal Ministry of Health recognized the potential of blockchain and organized a workshop on the topic in 2019.
Latest: Factors Pointing to Long-Term Success for BTC Despite Bitcoin Price Volatility
Out of 142 project outlines, 20 finalists were selected, and projects such as secure electronic prescription, decentralized patient consent service form, and blockchain-based work incapacity certificate were awarded.
However, to date, none of these projects have been implemented.
Since then, new initiatives have emerged, but many remain isolated and rarely implemented.
What’s stopping Germany from adopting blockchain?
If the technology is so promising, why are there so few blockchain projects in the German healthcare market?
Volker Nürnberg, professor of healthcare management at the Technical University of Munich, told Cointelegraph that the German healthcare sector is highly regulated and not always seen as a driver of innovation, making this a particularly difficult challenge for startups.
“From a global perspective, the healthcare sector is not always a driver of innovation. It is also (in Germany) extremely regulated. Especially startups, they don’t always want to go through the legal jungle.”
Nuremberg also addressed technical, ethical, and privacy issues that make blockchain implementation difficult. Protecting sensitive data and ensuring interoperability are key factors. “Due to the strong regulation of the healthcare sector, the adoption of blockchain technology is impossible without politicians and legislators.”
“Particularly stringent data protection regulations to protect sensitive patient data place high demands on the security and confidentiality of blockchain systems,” Lukas Weidener, MD and investor in various healthcare decentralized autonomous organizations, told Cointelegraph. He said.
GDPR poses unique challenges to blockchain.
The General Data Protection Regulation (GDPR) ensures that sensitive patient data is handled under strict security and confidentiality requirements.
This is especially important in the healthcare sector, where misuse or unauthorized disclosure of data can have serious consequences.
GDPR compliance can therefore be seen as a sign of quality and a foundation of trust for patients and users, ensuring that their data is handled safely and with care.
However, these data protection and security requirements can be problematic for blockchain applications, according to Weidener. This technology relies on data transparency and immutability and could potentially conflict with the right to be forgotten or data minimization principles.
Weidener said these regulations could force companies from other countries to overtake German companies, limiting German industry’s control and influence over the global development of these technologies.
Meanwhile, GDPR also provides an opportunity to accelerate the development of blockchain applications that are designed from the ground up to adhere to high standards.
“This will enable Germany to become a pioneer in the development of secure, transparent and patient-centric blockchain solutions in the healthcare sector,” said Weidener.
According to experts, taking full advantage of blockchain technology and meeting GDPR requirements requires close collaboration between technology developers, data protection officers and regulators. “The goal should be to develop innovative solutions that ensure both technological advancement and the protection and security of patient data.”
Blockchain’s Bad Reputation
Another factor driving adoption is the association between blockchain technology and cryptocurrencies.
The association of blockchain technology with the volatility and security issues of cryptocurrencies has had a negative impact on public perception, he said, adding that “the perceived energy consumption of some blockchain protocols may also lead to concerns about environmental sustainability.”
“This can create skepticism among decision-makers and users in the healthcare sector, who may view the technology with skepticism, especially if sustainability and environmental protection play an important role in the organization.”
In addition to these obstacles, “rigorous approval and certification processes for medical devices mean that all technological innovations must undergo extensive testing and approval processes, slowing the innovation cycle.”
Need for investment and funding in research
Adopting blockchain technology in healthcare requires significant investment in technology and expertise, which is especially challenging for smaller clinics and clinics. According to Weidener, the need to update or completely replace existing IT infrastructure and the lack of standardized solutions are making implementation more difficult.
Latest: Cryptocurrency companies are bracing for increased SEC and CFTC action following warnings from regulators.
Weidener emphasized the importance of targeted investments in research and financing, especially for new technologies that comply with data protection regulations. Without these investments, Germany risks falling behind technologically and preventing patients from accessing cutting-edge technologies.
Interoperability and integration with existing IT infrastructure, as well as the development of user-centric applications that can easily interact with blockchain-based healthcare applications, are also important, Weidener said.
“This is the only way Germany can play a leading role in the development and implementation of blockchain applications in the healthcare sector.”