What is blockchain based data validation?

Blockchain based data validation is an immutable method of securing data integrity. Through the use of blockchain technology properties, data integrity is tested for validity in a way that helps observe modifications that could corrupt its accuracy. Its best applications can be found in validating results, audit trails, or shared data among multiple parties. 

How it works

1. Validators gather transactions broadcast on the network.
2. They verify the authenticity of the transaction by checking the signature and ensuring the sender has sufficient funds.
3. Validators validate the transaction against predefined rules.
4. Once the transaction is deemed valid, it is added to a block.
5. The validated data contributes to the Merkle tree root node for storage.
6. Other nodes in the network validate the block.
7. A consensus mechanism confirms that all nodes in the network have the same version of the blockchain.
8. Once a consensus is reached among the nodes, the block is permanently added to the blockchain.
9. Each network node possesses a unique digital identity for the purpose of accountability and traceability.
10. The decentralized validation ensures the security and immutability of the blockchain.
11. The process relies on mathematical proofs and cryptographic hashing.
12. The transparent and tamper-proof ledger of transactions is available to all network users.

The role of blockchain verification in data integrity 

A study published in Elsevier notes, “Integrity verification of data in a cloud storage environment, also known as provable storage, is to allow users to retrieve a small amount of stored data with a certain knowledge protocol or to judge whether the data stored in the cloud is high or not complete.” 

When data enters the blockchain it is distributed across multiple nodes which makes it harder for alteration to occur without detection. An attempt to modify a block would change its hash which would then invalidate all subsequent blocks in the chain. This safety mechanism accompanies the fact that a blockchain's ability to ensure data integrity is based on the integrity of the data at its origin. 

If initial data is inaccurate or flawed, storing it on a blockchain does not correct those errors which leads to “garbage in, garbage out” scenarios. Also, blockchain-based hash validation can detect data tampering but cannot prevent data loss if the original data is stored separately. The security depends on the blockchain's security.

The methods of blockchain verification

1. Proof-of-Work (PoW): Miners compete to solve complex cryptographic puzzles requiring significant computational power. The first miner to solve the puzzle adds the verified block to the chain and receives a reward.
2. Proof-of-Stake (PoS): Validators are randomly selected to verify blocks based on their monetary stake in the network. The method does not involve solving computational puzzles.
3. Delegated Proof-of-Stake (DPoS): Token holders elect a few trusted nodes as 'delegates' responsible for transaction verification. These delegates validate transactions and maintain the network.
4. Practical Byzantine Fault Tolerance (PBFT): This consensus algorithm requires two-thirds of the participating nodes to agree on the validity of a transaction before it is confirmed. It is used in permissioned blockchains.

Is blockchain data validation useful to healthcare organizations? 

The central benefits of blockchain data validation can be condensed into two areas. Firstly, the creation of tamper proof records of medical transactions, patient interactions, and prescriptions, reduces the risk of billing fraud and identity theft. This is especially useful in ensuring that protected health information (PHI) within this data remains authentic. 

The second area in which it benefits the healthcare sector is the empowerment of patients. Blockchain allows patients to provide their healthcare providers access to their records through tokens. When accompanied by the use of additional security features like HIPAA compliant email and encrypted cloud storage, blockchain data validation has a place in healthcare organizations.  

FAQs

How can blockchain improve data security in healthcare? 

Blockchain acts as a decentralized database. The decentralized and immutable nature allows fail-proof data protection.

How can blockchain be used for medical staff credential verification? 

Blockchain enables healthcare organizations to record and oversee their personnel’s details.

What role do smart contracts play in healthcare applications of blockchain? 

Healthcare organizations can use blockchain in combination with smart contracts to reduce costs and enforce the validity of transactions by eliminating intermediaries.