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By Fabio Galdi
Every day, there are around two health data breaches in the U.S. alone. These aren’t just small accidents, either. In August of this year, hackers stole health data from over 4 million Americans in an IBM-targeted attack.
This data, and even the health data that’s voluntarily given through health and wellness apps, gets sold on the open internet, often with names attached. Clearly, a new solution is needed. Healthcare patients deserve anonymity, control over their data, and rewards if they choose to share it.
Blockchain has been on the tech scene for years, with its proponents tirelessly testing its capabilities. While not every application has been a success – think of the bizarre tokenization of endangered zoo animals – certain areas have real potential. Health data ownership stands out among these.
Why? Because blockchain promises what the traditional system has failed to deliver: true security and ownership. With anonymity at its core, decentralized structures ensure no single point of vulnerability and offer innovative crypto rewards to incentivize data sharing, the blockchain blueprint challenges the status quo of health data management.
The Current Model Is Failing
When blockchain is touted as a catch-all solution, the skeptic in many of us instantly fires back with, “Is this a problem that actually exists?” It’s a legitimate question.
Often, blockchain enthusiasts pitch it as the panacea for every ailment in the digital space. However, while blockchain is not always the optimal fit, there are instances where it’s precisely the solution needed. Health data ownership is a prime example.
In a span of just twelve years, healthcare breaches have exposed a staggering 385 million patient records. These aren’t mere numbers on a page. These breaches represent individual lives, private histories, and intimate details — all of which were supposed to be safeguarded with the utmost care due to their inherent sensitivity.
If that’s not unsettling enough, consider this: most wearable tech and IoT devices that have seamlessly integrated into our daily routines are extracting user health data. And many users remain blissfully unaware.
This harvested data then finds its way into the hands of pharmaceutical and insurance giants, filling their coffers as they capitalize on it. The ramifications are felt by the very users from whom this data was silently lifted – influencing their insurance rates, available medications, and treatment paths.
To put it bluntly, the health data landscape is riddled with deception and exploitation. Our personal data, instead of being safeguarded, is stealthily siphoned off and commoditized to the detriment of the everyday user. The bottom line? The system needs a dramatic overhaul. It's high time we ushered in change.
Users Want Agency Over Their Data
In an age dominated by digital technology, one's personal information has become both an asset and a liability. Stories of data breaches and misuse by tech giants are not new. Yet, the spotlight on these unethical practices only illuminates part of the problem: a lack of user agency.
Currently, opting out is an unrealistic solution. To truly escape the clutches of data pilferage, one would have to renounce all gadgets – phones, smartwatches, fitness trackers, and the like. A digital hermitage that’s hardly feasible in our interconnected world.
But here's the paradox: while a protective shield against data theft is still in the making, people aren't exactly seeking to lock away their information. Instead, they yearn for agency – the right to decide with whom their data is shared and under what terms.
A sentiment echoed by an EU study found that 81% of consumers want to choose “which personal data they give access to, whom they give access to, and for what purpose.” In fact, most consumers are happy to grant that access to their data in return for a type of compensation. According to the aforementioned study, 68% of consumers are willing to share health information for more affordable and accessible healthcare services and medicines.
Yet, the Web2 landscape, dominated by traditional tech conglomerates, seems tone-deaf to these shifting winds. They either lack the infrastructure to create such a reward system, or they are simply resistant to giving up their unchecked power.
Enter blockchain. More than just a technological marvel, it's an answer to this call for agency. It stands ready, not just to guard user data, but to turn data into a currency of choice, putting the power back where it truly belongs – in the hands of the user.
Blockchain Solves The Data Dilemma
Data security isn't just a tech problem, it's a trust problem. Users are continually wary, and rightfully so, considering the frequency with which their sensitive information, especially health data, becomes prey to malicious intentions. But what if there was a technology that didn't just store data but elevated user trust?
Blockchain, a decentralized digital ledger, offers just that. In its design, it allows users to house their health data in an environment that is not only decentralized, preventing a single point of failure, but also encrypted to ensure anonymity. Think of it as a vault, only that every brick is a piece of code ensuring utmost security. This isn't an overhyped promise. This is blockchain's raison d'être.
Contrast this with the Web2 model. Here, large corporations, which often act as centralized repositories, treat user data as low-hanging fruit. There's no incentive for them to pay for what they can easily get for free. But the winds are changing.
Web3, the next evolution, isn't just about decentralization; it's about democratization. In this realm, users hold the reins, choosing to share their data and, interestingly, getting rewarded for it. Through cryptocurrency reward models, decentralized storage platforms allow users to natively store their data and receive tokens as compensation. Here, data isn't just power; it's currency.
The war over health data ownership is more than just a tech challenge; it's a user revolution. Every individual is awakening to the reality of their stolen digital identity. Their demand is clear – give them control, reward their trust.
The old guards of the tech world, shackled by legacy systems, seem hesitant to adapt. But where they falter, blockchain shows promise. Offering not just secure storage, but a transparent reward mechanism, it's rewriting the rules of data ownership.
Author Bio
Fabio Galdi is the Co-Founder & CEO of VSC Network, a HealthFi ecosystem built on the Vyvo Smart Chain Layer-1 to promote and reward positive lifestyle habits through health data monetization, while ensuring data privacy.
Galdi is a serial entrepreneur and technologist, who has successfully founded and scaled several information technology companies, including the People’s Network, which became Italy’s second-largest internet service provider. Fabio is a computer science and telecommunications expert, holding a degree in Computer Science from the Technical and Industrial College at ITIS G. Marconi, Italy.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.