How blockchain assists the improvement of healthcare?

Maciej Zieliński

13 Apr 2023
How blockchain assists the improvement of healthcare?

Introduction

When you will find yourself in a hospital, the method at which your data is processed is the last thing you will be probably thinking about. However, it may be the key to your successful recovery. Why would the form of storing the data be so important and why does the blockchain seem to be the most optimal solution in this case? In this article we will dive into the topic of blockchain and healthcare, explain why is it important as well as show a real use case.

Why blockchain and healthcare?

The medical sciences are based on sheer facts and is fully dependent on them because their validity is a difference between the life and death of patients. The new medicine brought to the pharmacies, newly researched healing method or the project of a new tool wouldn’t be possible without a thorough analysis of hundreds of terabytes of data. We probably do not have to explain why is an accurate analysis of patients health and the information processed by the healthcare so necessary. The need to create and maintain massive databases with reliable and accessible information appears to maintain the proper flow of information between the experts and hospitals.

The key features of the usage of blockchain is the ability to protect the reliability of the data stored in its systems and to ease the flow of information between its systems. Thanks to that we reduce the human error margin and the risk of the loss or theft of data. This is why blockchain can prove to be revolutionary when it comes to aggregating data in the healthcare.

Blockchain in the medical e-documentation

In the last decades the need for the digitalization of medical documentation has increased significantly and has been requested by both doctors and patients around the world. Such a way of storage of data about the patients’ health, his medical referrals or the results of his testing makes them more accessible and eases the procedures that use them. After all the patient confronts many types of specialists on his road to health so any situation where  the medical history is inaccessible seems absurd.

Perhaps the main disadvantage of modern registries is the fact that they are scattered in between many facilities. The patients very often are forced to use many different medical services because of their life situations. Because of that, the data about their previous treatments is often lost or inaccessible. In Poland for example, many patients use both the private and the national healthcare which makes it difficult to control which of the EDM (electronic medical documentation system) systems would be used to allow the information to flow and so some doctors have difficulties with accessibility of data from his peers. Because the private medical facilities decide which EDM system they shall use independently, the communication between the different systems is usually lost. This translates into the lowered quality of decisions undertaken in reference to treatment and makes it difficult for the patient to access the documentation. Additionally when EDM is applied the data is often threatened by the audit, provenience and the loss of control.

Blockchain as a Solution

Solutions based on blockchain could potentially become a base for answering those issues. For example, MedRec system, tested by the Beth Israel Deaconess Medical Center uses the advantages shown by the blockchain to provide the users with confidentiality, integrity and an ability to easily verify data. Such a decentralised system of data gives its users an unchangeable medical documentation and allows for ease in accessing it in many situations.

An important trait of MedRec is the ability to let the patient be responsible for his own data. The system only holds a hash of the record of the medical documentation and informs the patient where the record should be held at. The hash allows for the record to be unchangeable and the users interface makes it sure that the medical documentation is consistent in between the medical facilities. This allows the record to be available for both the private and the national medical institutions as it is stored independently from them and is not limited to either.

A common trait between the blockchain based solutions like MedRec is the ability to exchange the medical data while there is a simultaneous confidentiality of the personal data. The first country which has discovered the potential behind this technology seems to be Estonia, where there was a first proposition of using the blockchain to maintain the EDM system.

Where shall we use the blockchain in the future?

In recent years, neurology of technological solutions had its fair deal of advancements. It has excited people around the world and left them hungering for more.  Its no surprise since the modern times strive towards less and less mechanical interaction with the infrastructure and the ability to control the facilities with the power of our own mind. Such neurological devices can interpret the patterns of brains activity and translate them into actual commands towards the external devices and interpret the psychological status of a person. However, in order to make such solutions work  we would need to digitalise the brain. Once again, blockchain can prove to become an indispensable tool to assist us in achieving that.

One of suggestions for such an implementation is storing the “thought files”, which would work like the compound elements of data of chains of personal thoughts which can be shared inside of a peer-to-peer system. This kind of blockchain thinking is proposed as a calculation system of processing the entering data with several functions that give the AI chance to integrate with the human brain.

Multicomponent verification which connects to the personal chain of thoughts as a blockchain implementation  can allow a safe cryptography of creation of joint numerical data for people. Such joint data reduce the number of silos of human data which also allows every human to keep their own private property and to share their own experience.  

Blockchain in Healthcare Use Case: Neurogress

One of the companies that confirmed their desire to use the blockchain technology to store the human brain activity data is Neurogress. Registered in Geneva and created in 2017, this company is keen on construction of neural control systems which will allow all of its users to control the machines, drones or AR/VR devices through the power of their mind. The Neuroregress system is focused on the usage of machine learning that is used in order to improve the ability to read the brains activity. Huge amounts of data about the neural activity is required to train the AI to use the system. The company defines the data with the usage of exabytes (1 exabyte = 1 billion gigabytes). Its no wonder the Neurogress will use blockchain as it allows the safety and privacy for data in large quantities.

Thanks to the ability to register the data of the user in decentralised blocks of chains is immune to manipulations and breaches. The system will allow the safety and confidentiality to its users because most of the suspicious activities are easily detectible. Simultaneously the usage of blockchain allows the Neurogress system to be open and accessible to its users.

Blockchain healthcare – the future of medical databases

The constant growth of medical sciences will bring much more data to process in the future. Quick processing of exchange between the facilities can become key in the improvement of the treatment process. Solutions which bring such a need will reduce the cost of procedures and the time needed to carry them out, they will reduce the usage of resources which are increasingly scarce. Additionally, the growing social awareness concerning the data and its protection will increase the need for the application of blockchain in the medical sector. As it offers an innovative look into the storage of data which assures its safety, reliability and quick exchange on the protocol level, it can become a solution that will let us both improve the existing methods and create newer, better ones.

Conclusion

To summarize, blockchain healthcare has the potential to transform the way patient data is stored and managed. Employing a secure, dependable, and decentralized approach for data aggregation, blockchain technology not only ensures patient privacy but also streamlines the exchange of information among hospitals and medical professionals. The MedRec system exemplifies this by empowering patients to control their data while preserving its confidentiality and consistency across various healthcare facilities. Moreover, applying blockchain technology to digitize brain data for neurological devices is another promising avenue being pursued by companies like Neurogress. In essence, blockchain healthcare offers promising solutions for data management and privacy concerns within the industry.

Want to know more about using the emerging technologies in medicine? Check out our article on AI in medice.

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Aethir Tokenomics – Case Study

Kajetan Olas

22 Nov 2024
Aethir Tokenomics – Case Study

Authors of the contents are not affiliated to the reviewed project in any way and none of the information presented should be taken as financial advice.

In this article we analyze tokenomics of Aethir - a project providing on-demand cloud compute resources for the AI, Gaming, and virtualized compute sectors.
Aethir aims to aggregate enterprise-grade GPUs from multiple providers into a DePIN (Decentralized Physical Infrastructure Network). Its competitive edge comes from utlizing the GPUs for very specific use-cases, such as low-latency rendering for online games.
Due to decentralized nature of its infrastructure Aethir can meet the demands of online-gaming in any region. This is especially important for some gamer-abundant regions in Asia with underdeveloped cloud infrastructure that causes high latency ("lags").
We will analyze Aethir's tokenomics, give our opinion on what was done well, and provide specific recommendations on how to improve it.

Evaluation Summary

Aethir Tokenomics Structure

The total supply of ATH tokens is capped at 42 billion ATH. This fixed cap provides a predictable supply environment, and the complete emissions schedule is listed here. As of November 2024 there are approximately 5.2 Billion ATH in circulation. In a year from now (November 2025), the circulating supply will almost triple, and will amount to approximately 15 Billion ATH. By November 2028, today's circulating supply will be diluted by around 86%.

From an investor standpoint the rational decision would be to stake their tokens and hope for rewards that will balance the inflation. Currently the estimated APR for 3-year staking is 195% and for 4-year staking APR is 261%. The rewards are paid out weekly. Furthermore, stakers can expect to get additional rewards from partnered AI projects.

Staking Incentives

Rewards are calculated based on the staking duration and staked amount. These factors are equally important and they linearly influence weekly rewards. This means that someone who stakes 100 ATH for 2 weeks will have the same weekly rewards as someone who stakes 200 ATH for 1 week. This mechanism greatly emphasizes long-term holding. That's because holding a token makes sense only if you go for long-term staking. E.g. a whale staking $200k with 1 week lockup. will have the same weekly rewards as person staking $1k with 4 year lockup. Furthermore the ATH staking rewards are fixed and divided among stakers. Therefore Increase of user base is likely to come with decrease in rewards.
We believe the main weak-point of Aethirs staking is the lack of equivalency between rewards paid out to the users and value generated for the protocol as a result of staking.

Token Distribution

The token distribution of $ATH is well designed and comes with long vesting time-frames. 18-month cliff and 36-moths subsequent linear vesting is applied to team's allocation. This is higher than industry standard and is a sign of long-term commitment.

  • Checkers and Compute Providers: 50%
  • Ecosystem: 15%
  • Team: 12.5%
  • Investors: 11.5%
  • Airdrop: 6%
  • Advisors: 5%

Aethir's airdrop is divided into 3 phases to ensure that only loyal users get rewarded. This mechanism is very-well thought and we rate it highly. It fosters high community engagement within the first months of the project and sets the ground for potentially giving more-control to the DAO.

Governance and Community-Led Development

Aethir’s governance model promotes community-led decision-making in a very practical way. Instead of rushing with creation of a DAO for PR and marketing purposes Aethir is trying to make it the right way. They support projects building on their infrastructure and regularly share updates with their community in the most professional manner.

We believe Aethir would benefit from implementing reputation boosted voting. An example of such system is described here. The core assumption is to abandon the simplistic: 1 token = 1 vote and go towards: Votes = tokens * reputation_based_multiplication_factor.

In the attached example, reputation_based_multiplication_factor rises exponentially with the number of standard deviations above norm, with regard to user's rating. For compute compute providers at Aethir, user's rating could be replaced by provider's uptime.

Perspectives for the future

While it's important to analyze aspects such as supply-side tokenomics, or governance, we must keep in mind that 95% of project's success depends on demand-side. In this regard the outlook for Aethir may be very bright. The project declares $36M annual reccuring revenue. Revenue like this is very rare in the web3 space. Many projects are not able to generate any revenue after succesfull ICO event, due to lack fo product-market-fit.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.

Quadratic Voting in Web3

Kajetan Olas

04 Dec 2024
Quadratic Voting in Web3

Decentralized systems are reshaping how we interact, conduct transactions, and govern online communities. As Web3 continues to advance, the necessity for effective and fair voting mechanisms becomes apparent. Traditional voting systems, such as the one-token-one-vote model, often fall short in capturing the intensity of individual preferences, which can result in centralization. Quadratic Voting (QV) addresses this challenge by enabling individuals to express not only their choices but also the strength of their preferences.

In QV, voters are allocated a budget of credits that they can spend to cast votes on various issues. The cost of casting multiple votes on a single issue increases quadratically, meaning that each additional vote costs more than the last. This system allows for a more precise expression of preferences, as individuals can invest more heavily in issues they care deeply about while conserving credits on matters of lesser importance.

Understanding Quadratic Voting

Quadratic Voting (QV) is a voting system designed to capture not only the choices of individuals but also the strength of their preferences. In most DAO voting mechanisms, each person typically has one vote per token, which limits the ability to express how strongly they feel about a particular matter. Furthermore, QV limits the power of whales and founding team who typically have large token allocations. These problems are adressed by making the cost of each additional vote increase quadratically.

In QV, each voter is given a budget of credits or tokens that they can spend to cast votes on various issues. The key principle is that the cost to cast n votes on a single issue is proportional to the square of n. This quadratic cost function ensures that while voters can express stronger preferences, doing so requires a disproportionately higher expenditure of their voting credits. This mechanism discourages voters from concentrating all their influence on a single issue unless they feel very strongly about it. In the context of DAOs, it means that large holders will have a hard-time pushing through with a proposal if they'll try to do it on their own.

Practical Example

Consider a voter who has been allocated 25 voting credits to spend on several proposals. The voter has varying degrees of interest in three proposals: Proposal A, Proposal B, and Proposal C.

  • Proposal A: High interest.
  • Proposal B: Moderate interest.
  • Proposal C: Low interest.

The voter might allocate their credits as follows:

Proposal A:

  • Votes cast: 3
  • Cost: 9 delegated tokens

Proposal B:

  • Votes cast: 2
  • Cost: 4 delegated tokens

Proposal C:

  • Votes cast: 1
  • Cost: 1 delegated token

Total delegated tokens: 14
Remaining tokens: 11

With the remaining tokens, the voter can choose to allocate additional votes to the proposals based on their preferences or save for future proposals. If they feel particularly strong about Proposal A, they might decide to cast one more vote:

Additional vote on Proposal A:

  • New total votes: 4
  • New cost: 16 delegated tokens
  • Additional cost: 16−9 = 7 delegated tokens

Updated total delegated tokens: 14+7 = 21

Updated remaining tokens: 25−21 = 425 - 21 = 4

This additional vote on Proposal A costs 7 credits, significantly more than the previous vote, illustrating how the quadratic cost discourages excessive influence on a single issue without strong conviction.

Benefits of Implementing Quadratic Voting

Key Characteristics of the Quadratic Cost Function

  • Marginal Cost Increases Linearly: The marginal cost of each additional vote increases linearly. The cost difference between casting n and n−1 votes is 2n−1.
  • Total Cost Increases Quadratically: The total cost to cast multiple votes rises steeply, discouraging voters from concentrating too many votes on a single issue without significant reason.
  • Promotes Egalitarian Voting: Small voters are encouraged to participate, because relatively they have a much higher impact.

Advantages Over Traditional Voting Systems

Quadratic Voting offers several benefits compared to traditional one-person-one-vote systems:

  • Captures Preference Intensity: By allowing voters to express how strongly they feel about an issue, QV leads to outcomes that better reflect the collective welfare.
  • Reduces Majority Domination: The quadratic cost makes it costly for majority groups to overpower minority interests on every issue.
  • Encourages Honest Voting: Voters are incentivized to allocate votes in proportion to their true preferences, reducing manipulation.

By understanding the foundation of Quadratic Voting, stakeholders in Web3 communities can appreciate how this system supports more representative governance.

Conclusion

Quadratic voting is a novel voting system that may be used within DAOs to foster decentralization. The key idea is to make the cost of voting on a certain issue increase quadratically. The leading player that makes use of this mechanism is Optimism. If you're pondering about the design of your DAO, we highly recommend taking a look at their research on quadratic funding.

If you're looking to create a robust governance model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure that your DAO will stand out as a beacon of innovation and resilience in the long term.