How Will Blockchain Tech Impact Healthcare Investors? 0 255

Amazon, Berkshire Hathaway, and JPMorgan Chase, three economic juggernauts, announced they’re teaming up to tackle healthcare, a sector of the economy that’s proven elusive for presidents and private-sector reform efforts alike.

Amazon CEO Jeff Bezos weighed in on healthcare costs, commenting that “reducing health care’s burden on the economy while improving outcomes for employees and their families would be worth the effort.”

No question, Bezos is right. But radical reform in the U.S. healthcare system might not come from these massive, centralized global players. Instead, the world’s newest transformative technology could hold the answers and affect stock prices across the board in one of the tallest pillars of the economy.

Blockchain in healthcare, blockchain everywhere?

A 2016 Deloitte study offered up that “Blockchain technology has the potential to transform health care, placing the patient at the center of the healthcare ecosystem and increasing the security, privacy, and interoperability of health data.”

Blockchain, which creates a decentralized, autonomous network of trust to share and record information, offers myriad benefits for both patients and care providers: a secure exchange of information without intermediaries, lower costs, secure patient identities, ease of sharing real-times updates across parties; smart contracts; and secure longitudinal health data for each patient.

As Bezos, Warren Buffett, and Jaime Diamond know, the healthcare market is massive, offering a significant opportunity for emerging companies to reduce costs, improve care, and deliver better outcomes for patients. Right now, healthcare in the United States comprises 17% of annual GDP with an aging population providing a consistent tailwind.

The Healthcare Information and Management Systems Society (HIMSS) says there is “massive untapped potential” to change the healthcare sector for the better through blockchain technology. For one, Blockchain tech can secure HIPAA-compliant data sharing across networks. A number of use cases have cropped up as a result. In a comment on the opportunity tech reporter Mike Butcher said illustratively that a blockchain record could “follow you around so you could avoid yet another dose of radiation because your record said you’d already had 50 head X-rays.” Moreover a raft of applications emerged between smart contracts, data tokenization, and blockchain combinations with AI and machine learning.

Blockchain smart contracts will automate transactions and reduce inefficiency,” says entrepreneur Adryenne Ashley. “Using smart contracts to track disease, cause and effect, treatment and results will be critical to learning and understanding how each patient responds.” Having that data automatically written to the blockchain eliminates delay in data analysis and creates a bridge between practitioners and researchers, leading to cures.

Blockchain companies with tokens will introduce new commerce and incentive systems. And combining blockchain technology with advancements in AI and machine learning will provide new insights and further improve care. In 2018, several new blockchain startups are launching across various areas in healthcare, representing some of the best applications of the technology to accomplish those goals.

Big Medicine taps into data

The fragmented, inaccessible nature of current electronic medical record systems alone millions. John Halamka, the chief information officer at Beth Israel Deaconess Medical Center in Boston, developed a secure-data exchange, MedRed, and advises another blockchain company, Simply Vital Health, as it builds a platform to streamline healthcare data management and reduce the costs of bundled payments. In the Harvard Business Review, Halamka wrote that blockchain protocol can “standardize secure data exchange in a less burdensome way than previous approaches.”

The rest of the healthcare industry is following Halamka’s lead. 16% of healthcare executives surveyed by IBM have “solid plans” to implement a commercial blockchain solution this year, with 56% planning to do so by 2020.

Supply chain

IBM, one of the corporate behemoths investing in blockchain technology, sees supply chain management as one of the key areas where blockchain can make an immediate improvement. The technology will enable “more secure and transparent monitoring of transactions” which will reduce time, cost, and human error.

Gem, one of the early companies to watch in this space, has a supply chain management software platform that “boosts the ‘collective intelligence,’ or Data IQ, from previously siloed data” allowing organizations to increase efficiency, accuracy, and speed of supply chain transactions. ShipChain, too, backed by DHL’s former CEO, launched its platform to tidy up the fractured transportation and shipping industry including medical freight and hazardous materials.

Tackling fraud

A favorite target among the federal enforcement crowd–myself included–Blockchain technology could also tackle the massive amount of fraud in the healthcare market. A 2012 study by the Centres for Medicare and Medicaid Services and the RAND Corporation estimated that fraud accounted for $98 billion of total Medicare and Medicaid spending and up to $272 billion across the entire U.S. healthcare system. Through secure, immutable records, blockchain ledgers could be one of the best tools to cut down of fraud, from false reimbursements to theft of patient records to gain access to prescription drugs.

What’s in store for 2018

The story of 2017 was the meteoric rise of cryptocurrencies with plenty of bearishness coming from marquee investors. That said even after a big correction, the biggest cryptocurrencies are up thousands of percentage points over the last twelve months. The bigger story is unfolding away from volatility, as blockchain companies look to solve big problems in healthcare. Rest assured that from an investment perspective the likes of Buffett and Bezos will take notice.

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Jordan French is a top journalist covering the intersection of technology and culture. On the Editorial Staff at TheStreet, French covers all things crypto including regulation, markets, ICOs, STOs, smart contracts, blockchain, funding, and the latest moves by top names in the asset class. A biomedical engineer and intellectual property attorney, French has cofounded five companies to earn Inc. 500 and Fast 50 rankings. You can read his work at TechCrunch, tech.co, Influencive, Today Show, Huffington Post, Entrepreneur and The Next Web, among others.

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Real Estate Doesn’t Need to Be So Complicated 0 338

Because blockchain is basically data management, one industry it stands to improve a great deal is real estate. The process of buying and selling real estate is first and foremost a data transfer. There were $463.9 billion in large cap commercial real estate investments nationwide in 2017. All that money moves paper. Since land cannot actually be owned, the idea of land ownership must be exhaustively documented, organized, purchased and sold. The myriad processes that make up one transaction, namely title transfers, putting funds through escrow, and navigating an outdated MLS system, all stand to benefit from a technology upgrade.

Blockchain could quicken and simplify these processes by virtue of its transparent, untamperable and near instantaneous handling of data. “What if you could irrefutably determine who previously owned a property, record with absolute certainty who the new owner is after it sells and reference the blockchain at any time to verify all previous owners?” asks Mark Rutzen, Co-founder and CEO of Eondo Inc.  “Even the combination or splitting of parcels would be easy to record with blockchain technology,” he adds.

Moving into the future of real estate, particularly commercial real estate and investment, will soon mean embracing the block. Here are some of the ways blockchain is changing real estate.

Financing Developers and Investors

For anyone in real estate investment or development, the most glaring obstacle is getting the upfront capital when you find a good opportunity.

“Real estate investors and developers are turning to new technologies like blockchain smart contracts to find more liquidity at lower costs,” says Joseph Snyder, CEO at Lannister Holdings, an Arizona-based technology company working to create more blockchain lending and crowdfunding tools through their Lannister Development subsidiary.

Lannister is publicly traded and regulated by the SEC, which is uncommon for a blockchain company. But Snyder sees it as an inevitability in the long term. He anticipates a future where blockchain real estate regulation is the norm, and blockchain development like Lannister’s is part of mainstream business development and commerce.

“We wanted to be heavily regulated up front,” he says. “We believe regulation and financial compliance are coming down the pipe.” And, according to their website, they “see a future of security, transparency, and growth beyond the stale oligarchy of traditionalists.”

Systems like this give access to capital to smaller investors and developers who don’t have a lot of capital to work with up front. In theory, this could level the playing field.

Real Estate Professionals Worldwide Are Developing a Blockchain Future

Others are envisioning a near future where you could buy a house with a click on a shopping cart icon. If blockchain can clean up the real estate process enough, it could do more than just disrupt the industry. It could give it a total overhaul.

The P2P nature of blockchain enables faster sales and a higher volume of deals closed with fewer legal headaches and administrative fees. It also means a trustless economy and immediate processing of property values and other technical details, like zoning regulations or utility expenses.

Organizations like the International Blockchain Real Estate Association, or IBREA, are dedicated to incubating the many possibilities produced by the intersection of real estate and blockchain. Local chapters of IBREA hold meetups in 23 cities for its 5,000 members to come together as professionals and co-educators, with the goal of moving the real estate world into the blockchain age.

According to Ragnar Lifthrasir, founder of IBREA, “real estate technology is going more peer to peer.”

“I think what people are missing with blockchain and real estate is the data problem,” he adds. “We have so much data in real estate. So to really do blockchain real estate well you also have to have a good data system, which is distributed file storage, or IPFS.”

Real Estate Without Headaches

With some real world testing to work out the bugs, blockchain real estate could take us into a future where we can buy and sell property as easily as we do a cup of coffee. With data properly arranged and the transactions secure and transparent, there will be no need for the systems currently governing the industry—nor the room for error, delays and complications they open up at every step.

For anyone with aspirations in real estate development or investment, blockchain promises to open a lot of doors.

There’s an Inflatable ‘Bitcoin Rat’ Staring Down the Fed 0 82

Someone has put a giant inflatable rat outside the Federal Reserve Bank in New York.

It’s covered in Bitcoin code, printed in rainbow colors, and is apparently a piece of installation art aimed at subverting the federal institution that controls the US dollar. Or is it pale, puffed-up pariah a commentary on Bitcoin bros themselves? Or does it have something to do with Warren Buffett, who earlier this year called Bitcoin “rat poison squared”? According to CoinDesk, who first reported on the inflatable rat, the meaning is intentionally ambiguous.

The artist behind the puzzling prank is Nelson Saiers. He describes his own work as “mystifying” and “singularly original”, notwithstanding the long history of rats being inflated as protests or used as economic and political icons in art and entertainment around the world.

“It’s art, so I hope they’re entertained by it,” he said, apparently implying that art is entertainment. “It’s informative, I hope people will learn [and] I’m hoping it’ll at least help people understand bitcoin better and be kind of faithful to what Satoshi would have wanted,” he added, citing the mysterious pseudonym of Bitcoin’s founder with a touch of reverence.

A $50 Million Artist

Saiers, a phD in theoretical mathematics, was a hedge fund manager who did that thing where you give up all the money to chase your dream of being an artist.

His financial experience includes a stint as managing director at Deutsche Bank’s prop trading desk, before becoming CIO of Saiers Capital, the hedge fund that bears his name. His creative career gives credence to the theory that working as an artist is more and more a privilege of the very wealthy.

CNBC estimated Saiers’s wealth to be around $50 million at the time of he departed from the financial industry to pick up his paintbrushes.

The Rat Joins a Tradition of Sculpture-as-Commentary in FiDi

The Bitcoin rat, which stands on Maiden Lane, isn’t the first pop up sculpture to grace Manhattan’s financial district. Last year, Kristen Visbal’s 50 inch bronze ‘Fearless Girl’ statue made waves by staring down the famous ‘Charging Bull’, to the outrage of ‘Charging Bull’ sculptor Arturo Di Modica. The 3.5 ton ‘Charging Bull’ itself was left on Wall Street in the middle of the night when Di Modica originally created it, obstructing traffic and drawing the curiosity of passers by.

When Saiers placed the Bitcoin rat, he initially set it up on private property and was promptly ushered off by security guards, who he says were good natured about the situation. He expects the sculpture to be more temporary than the aforementioned Wall Street bronzes, and will probably only be around for a few days.

A Critique of the 2008 Bailouts

The placement of the rat on Maiden Lane seems to be no accident, but rather a reference to the Maiden Lane Transactions, more commonly known as that time when the Fed bailed out the big banks after they all caused the 2008 market crash. The Bitcoin crowd’s antipathy towards the Fed and the big banks is palpable in Sairs’s rat sculpture, and while a more specific meaning eludes, perhaps the success of the piece depends upon its ability to start conversations about the state of finance.

We’ll leave it to the viewers to decide who’s the rat—the Federal Reserve, or Bitcoin itself—and what that means for the future of currencies.

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