Quantum-Safe Interoperable Supply Chain and Electronic Records Systems for Regulatory Proof and Cybersecurity

Key Takeaways

  • Dragonchain offers a quantum-safe hybrid blockchain with a Digital Fortress to protect every system within an organization.
  • Immediately secure transactions with millions of dollars of measurable proof for patients, providers, and regulators.
  • Dragonchain can integrate blockchain solutions with traditional systems today without drastic changes to hospital infrastructures to optimize supply chain management and interoperability. 

The signing of the Patient Protection and Affordable Care Act (PPACA), otherwise known as Obamacare, was about more than the costs of health insurance. Healthcare facilities were now tasked with creating an environment of interoperable networks throughout all facets of the health sector and it has not been an easy feat. When we look at the significant challenges to the interoperability between systems and the vulnerabilities of cyberattacks, it’s clear the healthcare system is desperately in need of some repair.


Within the healthcare sector, interoperability has seen its share of complications. Connecting different companies' electronic records presents its own challenges either from a technology standpoint or a lack of desire to work together. But even within individual facilities, siloed systems lack interoperability. Blockchain, specifically Dragonchain’s interoperable architecture, can actually become the solution to the interoperability obstacles the industry faces. 

Electronic Records

The inclusion of an interconnected interoperable electronic records system provides accurate up-to-date information for patient care. Dragonchain can not only connect blockchains, but it can interop traditional systems to each other all without the need for large infrastructure changes. Connected records can mitigate human error, increase productivity, and efficiency.

Supply Chain

Healthcare facilities will see real value in a robust interoperable supply chain management network. Dragonchain and CloudFace, an innovator in supply chain management, recently joined forces to create an accurate and current end-to-end supply chain management system that will decrease excessive and lost inventories by tracking and tracing every component within the system. 

The completely auditable and trackable proof of shipping system is used to identify counterfeits and to establish a chain of custody that shows when supplies are shipped, where they are going, and the signature of the entity that shipped the supplies. The entire process is automated with Dragonchain smart contracts that can be written in any coding language decreasing the need for specialized IT staff and severely decreasing costs and time to market.

Healthcare Regulation

Just by creating an interoperable network of electronic records and its supply chain, the healthcare facility can ease some of the financial burdens of regulatory compliance. Healthcare institutions spend nearly $39 billion a year solely on the administrative activities related to maintaining compliance to the 629 distinct regulatory requirements

Dragonchain allows for proof of compliance with all applicable regulations. A compliance dashboard is available to offer real-time reports. The dashboard allows objective data filtering to offer a comprehensive data set for institutions to identify areas of risk and areas of improvement. The automated audits come with proof reports for regulators that will show every single action taken and is provable with millions to billions of dollars of proof.


Cyber attacks are wreaking havoc in the healthcare industry and its supply chains. Medical records are a gold mine for hackers due to vast amounts of personally identifiable information (PII). There were over 41 million patient records breached in 2019 at an average cost of $7.13 million. In the healthcare industry, it takes an average of 329 days to identify and contain a data breach. In 2019 50% of breaches were the result of a cyber attack, 27% from human error, and 23% from system glitches.

Regardless of how the breaches occur, it is evident that this is a multifaceted issue that needs a holistic approach. Regulations such as HIPAA and GDPR are helpful but do little to address the root of the problem. The entire structure is fractured and security needs to be the first thought not the last.

The use of a private permissioned blockchain may mitigate the public release of health information and align with HIPAA, however, centralized private chains serve as an obstacle to interconnected healthcare systems. Traditional centralized systems have restricted storage capacity limitations and security flaws. Fully public blockchains, though secure and offer transparency, lack privacy. 

Since its inception at Disney, the primary goal of Drgaonchain’s architecture has always been the protection of business data with blockchain technology. Dragonchain understands there may be large data sets or sensitive data that can’t be fully distributed. Its hybrid interoperability solution, Interchain, combines private and public blockchains to capitalize on the best aspects of both. By doing this, the sensitive patient data remains at the hospital level and through controlled and secure decentralization of data, is only accessible by permissioned providers. Proof of the transactional data is then validated and secured to a public blockchain. 

The more decentralized the data, the harder it is for someone to attack it. This is where the Digital Fortress comes in. Coupled with AQED and their polymorphic technologies, quantum-proof encryption camouflages network data creating an invisible barrier. Much like Dragonchain’s hybrid architecture, this complete package addresses the security, interoperability, and supply chain issues that plague the healthcare system.

An Interoperable Digital Fortress Today

Decision-makers in the healthcare sector may be slow to embrace all that blockchain can do to solve their interoperability challenges. That is understandable. Achieving interoperability between traditional hospital systems already poses such problems that the thought of integrating a blockchain sounds like it would be wrought with major headaches. 

A few big names have already worked on programs to implement blockchain into healthcare facilities. But specific blockchain solutions have yet to tackle the scaling issues that constrain blockchains in general. Integrating some of these blockchains would result in a significantly increased volume. The entire blockchain would be bog down, unable to keep up with demand, and would increase fees across the whole ecosystem. 

With Dragonchain, the blockchain isn’t an obstacle to interoperability, it’s the solution. The infinitely scalable architecture was designed, not to change the system, but to make it better. To take away the pain of working within the confines of broken processes that leave the facility and the patients at a disadvantage.

The all-encompassing system of interoperability, supply chain optimization, and quantum encryption significantly drives down costs while increasing efficiencies. Proof of any event is aggregated to Bitcoin and Ethereum with millions of dollars of security in a day and billions of dollars worth of energy and security in just a few months, per transaction. This complete solution brings overall value to the entire organization. 

To learn more about our interoperable quantum-safe products contact us today to see where Dragonchain can implement solutions for your healthcare needs.