How blockchain assists the improvement of healthcare?

Maciej Zieliński

13 Apr 2023
How blockchain assists the improvement of healthcare?


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.


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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Applying Game Theory in Token Design

Kajetan Olas

16 Apr 2024
Applying Game Theory in Token Design

Blockchain technology allows for aligning incentives among network participants by rewarding desired behaviors with tokens.
But there is more to it than simply fostering cooperation. Game theory allows for designing incentive-machines that can't be turned-off and resemble artificial life.

Emergent Optimization

Game theory provides a robust framework for analyzing strategic interactions with mathematical models, which is particularly useful in blockchain environments where multiple stakeholders interact within a set of predefined rules. By applying this framework to token systems, developers can design systems that influence the emergent behaviors of network participants. This ensures the stability and effectiveness of the ecosystem.

Bonding Curves

Bonding curves are tool used in token design to manage the relationship between price and token supply predictably. Essentially, a bonding curve is a mathematical curve that defines the price of a token based on its supply. The more tokens that are bought, the higher the price climbs, and vice versa. This model incentivizes early adoption and can help stabilize a token’s economy over time.

For example, a bonding curve could be designed to slow down price increases after certain milestones are reached, thus preventing speculative bubbles and encouraging steadier, more organic growth.

The Case of Bitcoin

Bitcoin’s design incorporates game theory, most notably through its consensus mechanism of proof-of-work (PoW). Its reward function optimizes for security (hashrate) by optimizing for maximum electricity usage. Therefore, optimizing for its legitimate goal of being secure also inadvertently optimizes for corrupting natural environment. Another emergent outcome of PoW is the creation of mining pools, that increase centralization.

The Paperclip Maximizer and the dangers of blockchain economy

What’s the connection between AI from the story and decentralized economies? Blockchain-based incentive systems also can’t be turned off. This means that if we design an incentive system that optimizes towards a wrong objective, we might be unable to change it. Bitcoin critics argue that the PoW consensus mechanism optimizes toward destroying planet Earth.

Layer 2 Solutions

Layer 2 solutions are built on the understanding that the security provided by this core kernel of certainty can be used as an anchor. This anchor then supports additional economic mechanisms that operate off the blockchain, extending the utility of public blockchains like Ethereum. These mechanisms include state channels, sidechains, or plasma, each offering a way to conduct transactions off-chain while still being able to refer back to the anchored security of the main chain if necessary.

Conceptual Example of State Channels

State channels allow participants to perform numerous transactions off-chain, with the blockchain serving as a backstop in case of disputes or malfeasance.

Consider two players, Alice and Bob, who want to play a game of tic-tac-toe with stakes in Ethereum. The naive approach would be to interact directly with a smart contract for every move, which would be slow and costly. Instead, they can use a state channel for their game.

  1. Opening the Channel: They start by deploying a "Judge" smart contract on Ethereum, which holds the 1 ETH wager. The contract knows the rules of the game and the identities of the players.
  2. Playing the Game: Alice and Bob play the game off-chain by signing each move as transactions, which are exchanged directly between them but not broadcast to the blockchain. Each transaction includes a nonce to ensure moves are kept in order.
  3. Closing the Channel: When the game ends, the final state (i.e., the sequence of moves) is sent to the Judge contract, which pays out the wager to the winner after confirming both parties agree on the outcome.

A threat stronger than the execution

If Bob tries to cheat by submitting an old state where he was winning, Alice can challenge this during a dispute period by submitting a newer signed state. The Judge contract can verify the authenticity and order of these states due to the nonces, ensuring the integrity of the game. Thus, the mere threat of execution (submitting the state to the blockchain and having the fraud exposed) secures the off-chain interactions.

Game Theory in Practice

Understanding the application of game theory within blockchain and token ecosystems requires a structured approach to analyzing how stakeholders interact, defining possible actions they can take, and understanding the causal relationships within the system. This structured analysis helps in creating effective strategies that ensure the system operates as intended.

Stakeholder Analysis

Identifying Stakeholders

The first step in applying game theory effectively is identifying all relevant stakeholders within the ecosystem. This includes direct participants such as users, miners, and developers but also external entities like regulators, potential attackers, and partner organizations. Understanding who the stakeholders are and what their interests and capabilities are is crucial for predicting how they might interact within the system.

Stakeholders in blockchain development for systems engineering

Assessing Incentives and Capabilities

Each stakeholder has different motivations and resources at their disposal. For instance, miners are motivated by block rewards and transaction fees, while users seek fast, secure, and cheap transactions. Clearly defining these incentives helps in predicting how changes to the system’s rules and parameters might influence their behaviors.

Defining Action Space

Possible Actions

The action space encompasses all possible decisions or strategies stakeholders can employ in response to the ecosystem's dynamics. For example, a miner might choose to increase computational power, a user might decide to hold or sell tokens, and a developer might propose changes to the protocol.

Artonomus, Github

Constraints and Opportunities

Understanding the constraints (such as economic costs, technological limitations, and regulatory frameworks) and opportunities (such as new technological advancements or changes in market demand) within which these actions take place is vital. This helps in modeling potential strategies stakeholders might adopt.

Artonomus, Github

Causal Relationships Diagram

Mapping Interactions

Creating a diagram that represents the causal relationships between different actions and outcomes within the ecosystem can illuminate how complex interactions unfold. This diagram helps in identifying which variables influence others and how they do so, making it easier to predict the outcomes of certain actions.

Artonomus, Github

Analyzing Impact

By examining the causal relationships, developers and system designers can identify critical leverage points where small changes could have significant impacts. This analysis is crucial for enhancing system stability and ensuring its efficiency.

Feedback Loops

Understanding feedback loops within a blockchain ecosystem is critical as they can significantly amplify or mitigate the effects of changes within the system. These loops can reinforce or counteract trends, leading to rapid growth or decline.

Reinforcing Loops

Reinforcing loops are feedback mechanisms that amplify the effects of a trend or action. For example, increased adoption of a blockchain platform can lead to more developers creating applications on it, which in turn leads to further adoption. This positive feedback loop can drive rapid growth and success.

Death Spiral

Conversely, a death spiral is a type of reinforcing loop that leads to negative outcomes. An example might be the increasing cost of transaction fees leading to decreased usage of the blockchain, which reduces the incentive for miners to secure the network, further decreasing system performance and user adoption. Identifying potential death spirals early is crucial for maintaining the ecosystem's health.

The Death Spiral: How Terra's Algorithmic Stablecoin Came Crashing Down
the-death-spiral-how-terras-algorithmic-stablecoin-came-crashing-down/, Forbes


The fundamental advantage of token-based systems is being able to reward desired behavior. To capitalize on that possibility, token engineers put careful attention into optimization and designing incentives for long-term growth.


  1. What does game theory contribute to blockchain token design?
    • Game theory optimizes blockchain ecosystems by structuring incentives that reward desired behavior.
  2. How do bonding curves apply game theory to improve token economics?
    • Bonding curves set token pricing that adjusts with supply changes, strategically incentivizing early purchases and penalizing speculation.
  3. What benefits do Layer 2 solutions provide in the context of game theory?
    • Layer 2 solutions leverage game theory, by creating systems where the threat of reporting fraudulent behavior ensures honest participation.

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.


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


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 Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.


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.