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- 1 Healthcare services are about to change with DAO coming into the picture. How will it provide better healthcare?
- 2 Technology is taking over the world, and healthcare is not left behind. We will be discussing what DAO is and how it will benefit healthcare in general
Decentralized organizations are being built, which means that centralized authority does not have a say in how the organization is ruined. DAOs provide this kind of system for cryptocurrency. We will be discussing what DAOs are and how cryptocurrency can implement its effectiveness in blockchain systems
Introduction to DAO
DAO is an abbreviation for Decentralized Autonomous Organization. The name itself suggests that it’s a decentralized system that is not authorized by the central government. Members of DAOs can make changes to organizations since they own tokens. The DAO’s main objective is to give each person the authority, control, and voice to decide on a change in the DAO’s system. This does not require a group of individuals to give direction on how the system will be run. Practically, it focuses on improving the management system in DAOs.
Therefore, decision-making is based on two factors. The members use two strategies to make a decision, on-chain and off-chain. On-chain decisions involve machine consensus, and off-chain decisions are based on voting rights. The combination of these mechanisms helps in making wise decisions. These transactions and the rules of DAOs are registered and supported on the blockchain.
Healthcare involves healthcare providers and industries involved in the research and development of the health field. Including DAOs in the field can help increase access for patients and researchers, increasing transparency and participation in the management of the sector.
Effectiveness of DAOs in Healthcare
A lot is happening in healthcare services right now. Advancements have been made, and one of them involves DAOs in healthcare. DAOs are a decentralized system that is not authorized by any central authority. DAOs have improved the healthcare system by providing a less costly healthcare system for individuals.
Traditional institutions had a hierarchical form of running their firms and businesses. The business was governed by CEOs who had the rules in their hands. DAOs are a decentralized system that allows all the participants to vote against a certain rule and make decisions that are not governed by a central authority. Unlike other business structures, where the organization is in the form of a hierarchy that runs from the top management to the lowest management, DAO structures work with no power and authority concentrated in a central organization.
The organization is therefore managed by its members. Decisions are made generally since there is no central authority. This kind of structure allows measures taken to be straightforward, certified, and finally approved or even unapproved by the members of the organization. In healthcare, they can use this kind of system since transparency is involved since a certain idea will not be approved by a small number of people but by the whole organization.
DAO practically tries to remove hierarchy from the system; in hospitals, we understand how hierarchy develops, especially in terms of salary. The CEOs are heavily paid down to the lowest-ranked employees. The authority is centralized among the few members with higher ranks. For instance, insurance companies control their members’ health care, and individuals are supposed to follow certain rules. With the DAO’s introduction to healthcare, we won’t see authority in these insurance companies trying to control how insurance funds are supposed to be utilized by their members. Technology in hospitals has been made possible with the help of DAO; for instance, it introduces NFT membership, which will positively impact health care. DAO will restore how its members will interact and access healthcare services.
Recently, we have seen the Metaverse advance its roots in healthcare. Metaverse has changed healthcare by linking multiple technologies. The massive invasion of this technology gave birth to advanced virtual health technologies such as Human Digital Twins, the use of AI, virtual clinics, and the use of robotics to accelerate the clinical experience. Therefore, linking DAO healthcare will directly impact consumers positively with diverse advantages. For instance, its consumers will not have to pay high costs or bribe doctors to be served before others; instead, it will provide better holistic support.
Benefits of Using DAOs in Healthcare
There are numerous ways we can benefit from the DAO’s healthcare. This healthcare enables individuals to benefit a lot, unlike traditional healthcare.
For instance, let’s look at how health costs will be lowered. Using DAO healthcare would ease the cost burden. In traditional healthcare, the cost is slightly higher since it tries to benefit from these services. In DA Healthcare, the charges for services are the same. Being decentralized, these profits are not intended to benefit only one person; instead, they are returned to stakeholders to improve healthcare. They maintain a low cost of insurance by returning these profits to consumers, and operations are also lowered by the power of smart contracts.
Do you know how these traditional healthcare services provide higher rates and then negotiate them to their terms? I know you have not once but more than twice negotiated the rates for the services you will receive. Now these rates might be higher, and the profit made will be taken by the authorities. By using DAO healthcare, the negotiations are made by everyone since this is decentralized healthcare. There is not a single person who follows the rules. The negotiation rate is discussed to every member’s satisfaction. With the help of smart contracts, the members are able to discuss a better rate.
Conclusion
Healthcare is advancing in terms of technology. Traditional healthcare is complicated by DAO healthcare. I’m optimistic that positive changes will occur. Especially in insurance, the DAO’s healthcare insurance will boost their experience. Instead of consumers depending on rules that are governed by one person, decentralized healthcare will ensure better healthcare. Cost won’t be an issue again in decentralized healthcare. Good rates are the focus of decentralized healthcare. They will curb the money spent on traditional healthcare to benefit themselves. With the introduction of DAO, healthcare decisions will be discussed by every member to reach a better agreement, which will improve the service of healthcare.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
