I don't think the sentence is incorrect from a grammatical point of view. I mean, you can substitute "a decentralized application" by "John" and then it's obvio

I don't think the sentence is incorrect from a grammatical point of view. I mean, you can substitute "a decentralized application" by "John" and then it's obvious the sentence it's correct. However, there's a mistake in the sentence since I don't think the author wanted to say that a decentralized application was proposing solutions to medical insurances. AFAIK we are not yet at the point where applications are sentient and propose solutions. Probably the author wanted to say "... decentralized application IS proposed to improve ..."