What this new kid on the blockchain means for healthcare
From digital art and virtual sneakers to Taco Bell and Nyan Cat GIFs1, NFTs – non-fungible tokens – are captivating the tech world as they generate million dollar cryptocurrency payouts. What are NFTs, do they live up to the hype and what are the implications for healthcare? Here, we unpack NFTs and the blockchain to help healthcare brands stay ahead of the curve in understanding, and possibly one day leveraging, these new technological tools.
NFTs and Blockchain 101
NFTs are unique, non-fungible assets that can be bought, sold and traded. They are registered on the blockchain, a decentralized database that stores encrypted blocks of data and links them together so that they cannot be changed. Since blockchain data cannot be altered without detection, it offers security and transparency about the asset’s authenticity. NFTs can be minted (newly created) from digital files such as images, videos and audio, or representations of real objects such as clothing. An NFT allows the buyer to own the original item and contains built-in authentication as proof of ownership.
Making a digital asset an NFT is the attachment of a smart contract on a blockchain platform. To buy an NFT, you usually need fungible tokens (usually a cryptocurrency) and a “crypto-wallet”, which acts as a digital passport to access connected platforms and marketplaces. NFT purchases differ from other digital transactions because they are all recorded through blockchain technology which permanently records every time an NFT changes hands, therefore discouraging theft or fraud.
Can blockchain and NFTs boost healthcare?
NFTs and blockchain present a new approach to data storage that could have a major impact on the healthcare sector. Since the blockchain is decentralized, it offers a path for patients to own their medical records, giving them control over who can see their data and how it is shared, opening the door for them to profit from it.
Individual patients generate hundreds of megabytes of data each year2 from imaging, medical records, health apps, fitness trackers and more. Yet patients are usually not involved or consulted when their information is used. The most striking example comes through the story of Henrietta Lacks and her amazing HeLa cells3. Neither Ms. Lacks or her descendants knew that her cells, obtained during a biopsy in 1951, were used for decades to advance scientific research. Although patient data can inform search engine results, targeted advertising and personalized medicine, patients trust third parties with their sensitive information. NFTs and blockchain could potentially close the doors to this practice, putting ownership back in the hands of the individual.
Jim Nasr, CEO of blockchain-enabled software developer Acoer, says: “NFTs provide transparency and accountability for the exchange of personal data and can improve public trust in the pharmaceutical industry4.” Assume that health data can be stored in one place, controlled by the patient and integrated with electronic medical records as needed. In that case, patients can partner with healthcare researchers, drug developers and suppliers. There is still work to be done before this shift can become mainstream , and the legal and regulatory environment is hazy, especially when it comes to immutability.Data on the blockchain cannot be deleted or changed, which conflicts with the EU’s right to erasure.
Interoperability is a much-discussed topic in the conversation about current electronic medical and health record platforms (EMR/EHR). “Interoperability is intended to streamline care, promote patient-centered care and is also an opportunity to reduce healthcare costs by an estimated $30 billion5.” Patient-owned health records will create a new data-sharing infrastructure that improves the quality of care and reduces patient stress, positively impacting the healthcare experience.
As the health data infrastructure evolves, the industry also has an important responsibility to consider diversity, equity and inclusion. The current digital divide6 in the US threatens to leave behind 20% of Americans, mainly low-income blacks, indigenous peoples, people of color (BIPOC), and people in rural communities, through online interactions that require expensive equipment and internet access. The federal government has prioritized reducing the cost of high-speed Internet for millions of Americans to close this gap7. The tech and healthcare industries can help by expanding education around health data options and blockchain technology, with an eye toward one day making patient-owned data a reality.
Beyond data storage, the process through which NFTs are minted also provides opportunities to verify digital health services; authentication of credentials and data; protect IP; tracking prescriptions and purchases from order to completion; verification of HCP credentials; tracking consent from clinical trials and blood donation. In addition, NFTs imprinted in the blockchain can help secure the drug supply chain to prevent counterfeit drugs.
Healthcare brands have been wary of NFTs, but they have helped raise awareness and fundraising. Some examples include the men’s health awareness campaign, Movember8which used an NFT to get men to self-screen for testicular cancer, and the Keep a Breast Foundation, whose NFT bracelet9 helped to raise funds for breast cancer research. NFTs also have the power to connect patient or provider communities (e.g. in token-gated digital worlds or through affiliated interest groups on channels such as Discord), verify offers and services (e.g. offer badges to healthcare professionals to complete training), drive donations and offer access to events that facilitate brand experiences.
Important considerations
As NFTs continue to fascinate brands and consumers, it is important to be aware of several key challenges, including:
Environmental impact: The current process of minting NFTs on the blockchain requires enormous energy, resulting in a staggering amount of greenhouse gas emissions. Fortunately, new blockchain solutions with increased efficiency and carbon-neutral processes are emerging.
Entry barriers: Technical competence is a significant barrier and is probably the reason why NFT fraud is widespread. In addition to technical competence, attention must be paid to eliminating barriers such as internet access and equipment costs.
User experience: The technological NFTs are not user-friendly yet. It is still very technological and complicated, which can put most people off. As technology develops, the experience will become more accessible to the everyday user.
Merit transparency: NFTs are linked to the crypto economy. Creators must be clear about who owns the rights and keeps the royalties and who benefits from sales and resale.
What can health brands do now?
Since NFTs are an emerging technology in development, it is important to track new developments and monitor how different industry sectors are using them. Companies can determine the short- and long-term feasibility and interest in NFTs among key objectives. Resist the urge to grab the shiny new by offering an NFT as a gimmick. Doing so can jeopardize credibility by giving customers a permanent reminder of a worthless item associated with your brand.
For companies that can’t wait to dive into NFTs, remember that technology is most effective when it’s grounded in authenticity and humanity. Think about what makes sense for your customer and your brand, and how technology can increase engagement and offer value.
As interest in NFTs grows, so will the opportunities. It may take a while for NFTs to make sense for many brands, but understanding this new technology is the first step in preparing for a future where NFTs and blockchain bring meaning and value to the healthcare industry.
Christine Ryan is Executive Vice President, US Head of Digital Innovation and Liana Huber is vice president, digital at GCI Health.
[1] https://adamfard.com/blog/nfts-21-examples
[3] https://www.hopkinsmedicine.org/henriettalacks/
[4] https://www.pharmaceutical-technology.com/features/profit-patients-monetise-health-data-nfts/
[6] https://www.bcg.com/publications/2022/how-to-close-digital-divide-with-human-approach
[8] https://uk.movember.com/story/world-s-first-non-fungible-testicles-nft-tokens
