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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Token Engineering Process

Kajetan Olas

13 Apr 2024
Token Engineering Process

Token Engineering is an emerging field that addresses the systematic design and engineering of blockchain-based tokens. It applies rigorous mathematical methods from the Complex Systems Engineering discipline to tokenomics design.

In this article, we will walk through the Token Engineering Process and break it down into three key stages. Discovery Phase, Design Phase, and Deployment Phase.

Discovery Phase of Token Engineering Process

The first stage of the token engineering process is the Discovery Phase. It focuses on constructing high-level business plans, defining objectives, and identifying problems to be solved. That phase is also the time when token engineers first define key stakeholders in the project.

Defining the Problem

This may seem counterintuitive. Why would we start with the problem when designing tokenomics? Shouldn’t we start with more down-to-earth matters like token supply? The answer is No. Tokens are a medium for creating and exchanging value within a project’s ecosystem. Since crypto projects draw their value from solving problems that can’t be solved through TradFi mechanisms, their tokenomics should reflect that. 

The industry standard, developed by McKinsey & Co. and adapted to token engineering purposes by Outlier Ventures, is structuring the problem through a logic tree, following MECE.
MECE stands for Mutually Exclusive, Collectively Exhaustive. Mutually Exclusive means that problems in the tree should not overlap. Collectively Exhaustive means that the tree should cover all issues.

In practice, the “Problem” should be replaced by a whole problem statement worksheet. The same will hold for some of the boxes.
A commonly used tool for designing these kinds of diagrams is the Miro whiteboard.

Identifying Stakeholders and Value Flows in Token Engineering

This part is about identifying all relevant actors in the ecosystem and how value flows between them. To illustrate what we mean let’s consider an example of NFT marketplace. In its case, relevant actors might be sellers, buyers, NFT creators, and a marketplace owner. Possible value flow when conducting a transaction might be: buyer gets rid of his tokens, seller gets some of them, marketplace owner gets some of them as fees, and NFT creators get some of them as royalties.

Incentive Mechanisms Canvas

The last part of what we consider to be in the Discovery Phase is filling the Incentive Mechanisms Canvas. After successfully identifying value flows in the previous stage, token engineers search for frictions to desired behaviors and point out the undesired behaviors. For example, friction to activity on an NFT marketplace might be respecting royalty fees by marketplace owners since it reduces value flowing to the seller.

source: https://www.canva.com/design/DAFDTNKsIJs/8Ky9EoJJI7p98qKLIu2XNw/view#7

Design Phase of Token Engineering Process

The second stage of the Token Engineering Process is the Design Phase in which you make use of high-level descriptions from the previous step to come up with a specific design of the project. This will include everything that can be usually found in crypto whitepapers (e.g. governance mechanisms, incentive mechanisms, token supply, etc). After finishing the design, token engineers should represent the whole value flow and transactional logic on detailed visual diagrams. These diagrams will be a basis for creating mathematical models in the Deployment Phase. 

Token Engineering Artonomous Design Diagram
Artonomous design diagram, source: Artonomous GitHub

Objective Function

Every crypto project has some objective. The objective can consist of many goals, such as decentralization or token price. The objective function is a mathematical function assigning weights to different factors that influence the main objective in the order of their importance. This function will be a reference for machine learning algorithms in the next steps. They will try to find quantitative parameters (e.g. network fees) that maximize the output of this function.
Modified Metcalfe’s Law can serve as an inspiration during that step. It’s a framework for valuing crypto projects, but we believe that after adjustments it can also be used in this context.

Deployment Phase of Token Engineering Process

The Deployment Phase is final, but also the most demanding step in the process. It involves the implementation of machine learning algorithms that test our assumptions and optimize quantitative parameters. Token Engineering draws from Nassim Taleb’s concept of Antifragility and extensively uses feedback loops to make a system that gains from arising shocks.

Agent-based Modelling 

In agent-based modeling, we describe a set of behaviors and goals displayed by each agent participating in the system (this is why previous steps focused so much on describing stakeholders). Each agent is controlled by an autonomous AI and continuously optimizes his strategy. He learns from his experience and can mimic the behavior of other agents if he finds it effective (Reinforced Learning). This approach allows for mimicking real users, who adapt their strategies with time. An example adaptive agent would be a cryptocurrency trader, who changes his trading strategy in response to experiencing a loss of money.

Monte Carlo Simulations

Token Engineers use the Monte Carlo method to simulate the consequences of various possible interactions while taking into account the probability of their occurrence. By running a large number of simulations it’s possible to stress-test the project in multiple scenarios and identify emergent risks.

Testnet Deployment

If possible, it's highly beneficial for projects to extend the testing phase even further by letting real users use the network. Idea is the same as in agent-based testing - continuous optimization based on provided metrics. Furthermore, in case the project considers airdropping its tokens, giving them to early users is a great strategy. Even though part of the activity will be disingenuine and airdrop-oriented, such strategy still works better than most.

Time Duration

Token engineering process may take from as little as 2 weeks to as much as 5 months. It depends on the project category (Layer 1 protocol will require more time, than a simple DApp), and security requirements. For example, a bank issuing its digital token will have a very low risk tolerance.

Required Skills for Token Engineering

Token engineering is a multidisciplinary field and requires a great amount of specialized knowledge. Key knowledge areas are:

  • Systems Engineering
  • Machine Learning
  • Market Research
  • Capital Markets
  • Current trends in Web3
  • Blockchain Engineering
  • Statistics

Summary

The token engineering process consists of 3 steps: Discovery Phase, Design Phase, and Deployment Phase. It’s utilized mostly by established blockchain projects, and financial institutions like the International Monetary Fund. Even though it’s a very resource-consuming process, we believe it’s worth it. Projects that went through scrupulous design and testing before launch are much more likely to receive VC funding and be in the 10% of crypto projects that survive the bear market. Going through that process also has a symbolic meaning - it shows that the project is long-term oriented.

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.

FAQ

What does token engineering process look like?

  • Token engineering process is conducted in a 3-step methodical fashion. This includes Discovery Phase, Design Phase, and Deployment Phase. Each of these stages should be tailored to the specific needs of a project.

Is token engineering meant only for big projects?

  • We recommend that even small projects go through a simplified design and optimization process. This increases community's trust and makes sure that the tokenomics doesn't have any obvious flaws.

How long does the token engineering process take?

  • It depends on the project and may range from 2 weeks to 5 months.

What is Berachain? 🐻 ⛓️ + Proof-of-Liquidity Explained

Karolina

18 Mar 2024
What is Berachain? 🐻 ⛓️ + Proof-of-Liquidity Explained

Enter Berachain: a high-performance, EVM-compatible blockchain that is set to redefine the landscape of decentralized applications (dApps) and blockchain services. Built on the innovative Proof-of-Liquidity consensus and leveraging the robust Polaris framework alongside the CometBFT consensus engine, Berachain is poised to offer an unprecedented blend of efficiency, security, and user-centric benefits. Let's dive into what makes it a groundbreaking development in the blockchain ecosystem.

What is Berachain?

Overview

Berachain is an EVM-compatible Layer 1 (L1) blockchain that stands out through its adoption of the Proof-of-Liquidity (PoL) consensus mechanism. Designed to address the critical challenges faced by decentralized networks. It introduces a cutting-edge approach to blockchain governance and operations.

Key Features

  • High-performance Capabilities. Berachain is engineered for speed and scalability, catering to the growing demand for efficient blockchain solutions.
  • EVM Compatibility. It supports all Ethereum tooling, operations, and smart contract languages, making it a seamless transition for developers and projects from the Ethereum ecosystem.
  • Proof-of-Liquidity.This novel consensus mechanism focuses on building liquidity, decentralizing stake, and aligning the interests of validators and protocol developers.

MUST READ: Docs

EVM-Compatible vs EVM-Equivalent

EVM-Compatible

EVM compatibility means a blockchain can interact with Ethereum's ecosystem to some extent. It can interact supporting its smart contracts and tools but not replicating the entire EVM environment.

EVM-Equivalent

An EVM-equivalent blockchain, on the other hand, aims to fully replicate Ethereum's environment. It ensures complete compatibility and a smooth transition for developers and users alike.

Berachain's Position

Berachain can be considered an "EVM-equivalent-plus" blockchain. It supports all Ethereum operations, tooling, and additional functionalities that optimize for its unique Proof-of-Liquidity and abstracted use cases.

Berachain Modular First Approach

At the heart of Berachain's development philosophy is the Polaris EVM framework. It's a testament to the blockchain's commitment to modularity and flexibility. This approach allows for the easy separation of the EVM runtime layer, ensuring that Berachain can adapt and evolve without compromising on performance or security.

Proof Of Liquidity Overview

High-Level Model Objectives

  • Systemically Build Liquidity. By enhancing trading efficiency, price stability, and network growth, Berachain aims to foster a thriving ecosystem of decentralized applications.
  • Solve Stake Centralization. The PoL consensus works to distribute stake more evenly across the network, preventing monopolization and ensuring a decentralized, secure blockchain.
  • Align Protocols and Validators. Berachain encourages a symbiotic relationship between validators and the broader protocol ecosystem.

Proof-of-Liquidity vs Proof-of-Stake

Unlike traditional Proof of Stake (PoS), which often leads to stake centralization and reduced liquidity, Proof of Liquidity (PoL) introduces mechanisms to incentivize liquidity provision and ensure a fairer, more decentralized network. Berachain separates the governance token (BGT) from the chain's gas token (BERA) and incentives liquidity through BEX pools. Berachain's PoL aims to overcome the limitations of PoS, fostering a more secure and user-centric blockchain.

Berachain EVM and Modular Approach

Polaris EVM

Polaris EVM is the cornerstone of Berachain's EVM compatibility, offering developers an enhanced environment for smart contract execution that includes stateful precompiles and custom modules. This framework ensures that Berachain not only meets but exceeds the capabilities of the traditional Ethereum Virtual Machine.

CometBFT

The CometBFT consensus engine underpins Berachain's network, providing a secure and efficient mechanism for transaction verification and block production. By leveraging the principles of Byzantine fault tolerance (BFT), CometBFT ensures the integrity and resilience of the Berachain blockchain.

Conclusion

Berachain represents a significant leap forward in blockchain technology, combining the best of Ethereum's ecosystem with innovative consensus mechanisms and a modular development approach. As the blockchain landscape continues to evolve, Berachain stands out as a promising platform for developers, users, and validators alike, offering a scalable, efficient, and inclusive environment for decentralized applications and services.

Resources

For those interested in exploring further, a wealth of resources is available, including the Berachain documentation, GitHub repository, and community forums. It offers a compelling vision for the future of blockchain technology, marked by efficiency, security, and community-driven innovation.

FAQ

How is Berachain different?

  • It integrates Proof-of-Liquidity to address stake centralization and enhance liquidity, setting it apart from other blockchains.

Is Berachain EVM-compatible?

  • Yes, it supports Ethereum's tooling and smart contract languages, facilitating easy migration of dApps.

Can it handle high transaction volumes?

  • Yes, thanks to the Polaris framework and CometBFT consensus engine, it's built for scalability and high throughput.