Back to Blog

Can Web3 Solve the Gaps in Community Driven Digital Health? Exploring the Failures of Blockchain in Health Tech So Far

In recent discussions about healthcare innovation, the importance of community-based health services has been gaining renewed attention. In a recent post on Second Opinion by Christina Farr, the challenges faced by community health services in the digital health landscape were highlighted. Despite growing interest, digital health solutions are often detached from the local needs of communities, leading to inefficiencies in care delivery. Could Web3 technologies offer a solution? But why have blockchain and Web3 technologies largely failed in health tech thus far, and why could they still provide the missing link in solving community health challenges.

 

Why Community-Based Health Services Are Struggling

 

According to Second Opinion, digital health solutions are often designed with a broad population in mind, missing the specific concerns of local communities. These services often lack robust infrastructure and face challenges like data silos, privacy concerns, and inefficiencies in coordination.

 

Community-based health services also struggle with integrating technology into care pathways. While digital tools can enhance care coordination and patient engagement, they rarely meet the nuanced needs of diverse, often underserved populations. It’s here that the promise of decentralized technologies like Web3 and blockchain may seem appealing—but why haven’t they succeeded?

 

The Promise of Web3 in Healthcare

 

Web3 is often hailed as a decentralized alternative to traditional internet services, offering users greater control over their data. In healthcare, this could translate to patients having ownership of their medical records, easier access to care across different systems, and the creation of more secure and transparent systems for sharing sensitive health data. According to the book Read, Write, Own: Building the Web3 Future by Chris Dixon, Web3 is expected to empower individuals by allowing them to have control over their digital assets. In healthcare, this could mean the tokenization of health data, where patients or communities could own and control the data that healthcare providers use.

This vision aligns with the needs of community-based health services. Imagine a future where local health centers leverage decentralized health platforms to seamlessly share patient data across providers, without the fear of violating privacy laws or facing infrastructure challenges.

 

Why Web3 and Blockchain Haven’t Worked in Health Tech—Yet

 

Despite the potential, Web3 and blockchain solutions have struggled to gain traction in health tech. There are several reasons for this:

 

1. Regulatory Hurdles

Healthcare is one of the most heavily regulated sectors in the world. Web3 technologies, especially blockchain, introduce complexities in areas like data privacy and ownership, which are governed by stringent laws such as HIPAA in the U.S. and GDPR in the EU. Even though blockchain offers security and immutability, its decentralized nature conflicts with healthcare regulations that require clear custodianship of patient data. Without regulatory clarity, large-scale adoption of Web3 in health services has been limited (Forbes).

2. Interoperability Issues

One of the major promises of blockchain is its ability to provide an interoperable platform for health data. However, existing healthcare systems are notorious for their fragmentation, with different Electronic Health Record (EHR) systems often incompatible with each other. While blockchain could theoretically solve these issues, the current lack of standardized protocols for health data management has hindered its adoption (The Lancet Digital Health).

3. Trust and Adoption

Trust is a crucial component in healthcare. While blockchain ensures immutability, the concept of decentralization can be intimidating for both providers and patients. Healthcare professionals may hesitate to adopt a technology they don’t fully understand, especially when patient safety is on the line. Similarly, patients may be wary of placing their sensitive health data on a decentralized platform, fearing the potential for breaches or misuse (MIT Technology Review).

 

Can Web3 Still Transform Community-Based Health Services?

 

Despite these challenges, there are emerging models that suggest Web3 could still play a vital role in community-based health services. For example, the tokenization of patient data could allow for new funding models, where individuals and communities are compensated for sharing their health data with researchers and pharmaceutical companies. This could also lead to more personalized and community-specific health solutions.

 

In addition, decentralized health platforms could enable local health services to bypass centralized, bureaucratic structures, allowing them to create more agile and responsive healthcare models tailored to their communities’ specific needs. Through blockchain-based smart contracts, healthcare services could facilitate more transparent, equitable partnerships between patients and providers.

 

While blockchain and Web3 technologies have failed to make a meaningful impact in health tech so far, there are still opportunities for these technologies to address some of the most pressing issues in community-based health services. Regulatory challenges, trust, and cost remain significant barriers, but innovative use cases may eventually overcome these hurdles, paving the way for a more decentralized, community-driven healthcare ecosystem.

 

References

 

1. Second Opinion Media. “We’re Undervaluing the Importance of Community in Digital Health

2. Dixon, Chris. Read, Write, Own: Building the Web3 Future. Goodreads.

3. Forbes. “Web3 and Healthcare Innovation: What to Expect in the Next Decade

4. The Lancet Digital Health. “Blockchain Applications in Healthcare

5. MIT Technology Review. “Why Blockchain Could Fail Healthcare

Back to Blog
Cookie Settings
This website uses cookies

Cookie Settings

We use cookies to improve user experience. Choose what cookie categories you allow us to use. You can read more about our Cookie Policy by clicking on Cookie Policy below.

These cookies enable strictly necessary cookies for security, language support and verification of identity. These cookies can’t be disabled.

These cookies collect data to remember choices users make to improve and give a better user experience. Disabling can cause some parts of the site to not work properly.

These cookies help us to understand how visitors interact with our website, help us measure and analyze traffic to improve our service.

These cookies help us to better deliver marketing content and customized ads.