The new wave of digital transformation is revolutionizing every industry, and healthcare is no exception. New technologies like blockchain, decentralized identity (DID) and verifiable credentials (VCs) have the potential to change the way patient data is managed, shared, and verified, leading to improved efficiency, enhanced security, and better patient outcomes.

Today, we will discuss how DID and VCs can transform the healthcare industry with their use cases and benefits for both patients and healthcare providers.  

How Healthcare Providers manage their Data? 

Today, healthcare data is often siloed and fragmented across various systems and providers. Traditional healthcare data management systems rely on centralized databases, which are vulnerable to cyber-attacks and data breaches. This also lacks interoperability, which makes it difficult for patients to access and control their own health information.  

In 2023 alone, over 133 million patient records were compromised in the United States. So, the need for more secure solutions is real. Moreover, the fragmented nature of healthcare data, scattered across multiple providers and systems, hinders effective care coordination and research efforts. 

As stated, patients often struggle to access and control their own health information, which leads to a lack of transparency and trust in the system. A recent survey revealed that 60% of patients are concerned about the privacy and security of their medical records. This erosion of trust not only impacts patient engagement but also hinders the adoption of digital health solutions. 

What Is Decentralized Identity and Its Importance in Healthcare  

Decentralized identity is a new approach to digital identity that puts users in control of their personal information. Unlike traditional centralized identity systems, where user data is stored and managed by a single entity, decentralized identity allows individuals to create and manage their own digital identities using blockchain technology. 

Patients can selectively share their data with providers, researchers, and other stakeholders as needed. So, DID offers a solution by enabling patients to own and control their healthcare data through self-sovereign identity (SSI). With DID, patients can: 

• Access, review, and amend their identities and data 

• Selectively share data and see who has access to it 

• Give consent or opt in/out of data sharing 

• Request data deletion or to be forgotten 

By putting patients in control of their data, DID lays the foundation for a more secure, patient-centric healthcare system. 

What Are Verifiable Credentials and Their Role in Healthcare? 

Verifiable credentials are digital, tamper-proof records that can be used to prove an individual’s identity, qualifications, or other attributes. VCs are cryptographically signed by the issuing authority and can be instantly verified by anyone, anywhere, without relying on a centralized database. 

In the healthcare industry, VCs can represent a wide range of information, such as: 

• Medical qualifications and licenses  

• Medical records and test results 

• Prescription histories 

• Insurance coverage and claims 

• Professional credentials for healthcare providers 

By using VCs, healthcare organizations can ensure that the information they receive is authentic, tamper-proof, and instantly verifiable. This not only reduces the risk of fraud and errors but also enables more efficient and trusted data exchange between stakeholders. 

Check: Why Do We Need Verifiable Credentials? What’s Wrong with Our Current Verification Systems? 

Use Cases for DID and VCs in the Healthcare Industry 

Patient Identity Management 

DID enables patients to securely manage their identities and share only the necessary information with healthcare providers. Patients can use verifiable credentials stored in digital wallets to prove their identity and eligibility for services, streamlining the registration and onboarding process. 

Streamlined Medical Records 

With DID, patients can consolidate their medical records from multiple providers into a single, comprehensive view. This not only simplifies record-keeping for patients but also enables healthcare providers to access a more complete picture of a patient’s health history, leading to better-informed care decisions. 

Secure Prescriptions 

Verifiable credentials can be used to securely issue and verify prescriptions, reducing the risk of fraud and abuse. Pharmacies can instantly verify the authenticity of a prescription using the prescriber’s digital signature, ensuring that only legitimate prescriptions are filled. 

Professional Credentials 

DID and VCs can make the verification process of healthcare professionals’ qualifications, certifications, and licenses very easy. Some organizations are collaborating with the UK’s National Health Service (NHS) to create portable, trusted digital IDs for healthcare professionals, simplifying the credentialing process. 

Benefits of Using Decentralized Identity and Verifiable Credentials in the Healthcare Industry 

The healthcare industry can benefit from the combination of decentralized identity and verifiable credentials. 

1. Secure and Efficient Data Sharing 

One of the most significant challenges facing the healthcare industry is the secure and efficient sharing of patient data across different providers and systems. With DID and VCs, patients can maintain control over their health information, and they share access to specific providers as needed. This not only increases privacy and security but also streamlines the process of sharing medical records, which reduces administrative burdens and improves the continuity of care. 

2. Improved Patient Engagement and Empowerment 

Decentralized identity puts patients at the centre of their healthcare journey, which allows them to actively participate in managing their health data. By using digital wallets to store and share verifiable credentials, patients can easily access their medical history, track their progress, and make decisions about their care. 

Read: Verifiable Credentials in Smart Car Identity Management: Explaining SIUV Concept 

3. Enhanced Interoperability and Data Portability 

The healthcare industry has long struggled with interoperability issues, as different providers and systems often use incompatible data formats and standards. Decentralized identity and verifiable credentials, built on World Wide Web Consortium (W3C) standards, can help bridge these gaps. With seamless data portability and interoperability, these technologies can facilitate more effective collaboration among healthcare providers, leading to improved patient care and reduced costs. 

4. Streamlined Credentialing and Licensing 

VCs can significantly simplify the process of credentialing and licensing for healthcare professionals. By issuing digital, tamper-proof credentials, regulatory bodies and educational institutions can ensure the authenticity and validity of qualifications. This reduces the risk of fraud and streamlines the verification process. This not only saves time and resources but also enhances trust and transparency within the healthcare system. 

5. Enhanced Security and Fraud Prevention 

The healthcare industry is a prime target for cyber-attacks and data breaches, given the sensitive nature of the information it handles. Decentralized identity and verifiable credentials offer a more secure alternative to traditional centralized systems. These solutions can protect patient data from unauthorized access, tampering, and theft. Additionally, the use of verifiable credentials can help prevent fraud, such as the use of fake medical licenses or insurance cards. 

Also Read: Supply Chain Management: How It Works & the Role of Verifiable Credentials 

Conclusion 

So, DID and VCs are set to transform the healthcare industry with more security, efficiency, and a patient-centric approach to managing and sharing health data. If you are a business looking to explore the potential of decentralized identity and verifiable credentials in healthcare, EveryCRED is here to help.  

We can guide you through the process of integrating these technologies into your organization. Contact us to learn more and take the first step towards the future of healthcare.