Startup brings blockchain to Ukrainian refugees, gets $2.4 million in funding

For many, blockchain is best known as the technology that underpins cryptocurrencies. But startup TransCrypts is using it to give people more control over their personal information — including refugees who fled Ukraine.

A document verification platform, TransCrypts, is making waves, recently landing $2.4 million in funding from backers that included Mark Cuban.

At the helm is 23-year-old CEO Zain Zaidi and co-founder and chief technology officer Ali Zaheer, an alumnus of the University of Toronto. The pair developed the startup with support from The Hub, U of T Scarborough’s entrepreneurial incubator.

“Our goal is to put you in control of all your documents,” says Zaidi. “We can do away with this 20th century way of verifying documents and create a world where I can instantly show you who I am, my work and income history, and hopefully one day my criminal and medical history.”

The company, which also received seed funding via startup competitions hosted by The Hub and U of T Entrepreneurship last year, uses blockchain technology to break files into thousands of pieces, or blocks, and store them on computers around the world. The files are so thoroughly encrypted that even TransCrypts cannot access them without direct permission. For official documents, such as medical records, the credentials that make a file legitimate are converted to a block in the blockchain. Owners can share and access the verified files, but cannot modify them.

“One thing we’re really proud of is that we don’t store your data like a lot of big tech companies,” says Zaidi. “We consider ourselves the postal service. We deliver the letter. We don’t open it – we don’t know what’s inside, we just help share it.”

When it comes to healthcare. Zaheer says providers often use different platforms to store electronic health records, leaving patients with a disjointed medical history scattered across clinics and hospitals.

“Patients cannot easily take their complete health data and records with them if they change hospitals or move,” says Zaheer, a graduate of U of T Scarborough’s computer science program. “This makes it very difficult for doctors to see the history and rationality of decisions made by previous doctors.”

Thousands of Ukrainian refugees get access to medical records with pilot project

TransCrypts is developing a way to allow both patients and healthcare professionals to easily access and share electronic health records via the blockchain. When the war in Ukraine broke out, the company worked with grassroots organizations that helped refugees get the idea off the ground.

“Many refugees did not have their medical records and could not contact hospitals that were now in a war zone,” says Zaidi. “They received poor quality health care because they did not know the local language and could not communicate, for example, an allergy to a medication or a proxy condition that would affect treatment.”

TransCrypt’s pilot project allowed Ukrainian hospitals to upload medical records directly to its virtual platform. Refugees could then view, access and share their medical records with healthcare professionals via QR codes and translate them into the host country’s language through a built-in feature. The project has given more than 4,000 refugees direct access to their medical records, which TransCrypt says resulted in significant increases in the quality of healthcare.

Blockchain-based service that frees up thousands of hours for HR departments

Zaidi says easy access to medical records will save patients from waiting for their files — not to mention the fees hospitals and clinics often charge to share them. The same logic applies to all official documents held by an organization. This includes criminal background checks and independent sharing of school transcripts or confirmations of employment.

The same applies to getting a mortgage, leasing or loan, which typically requires HR departments to send documents confirming income or employment. TransCrypts offers a service that integrates with an HR department’s existing software and allows employees to access their own verification documents. Employees can then email their files directly to the third parties – with the email coming from their employer’s email address, increasing validity.

The company says more than 100 organizations using TransCrypts collectively saved tens of thousands of hours last year that would otherwise have been spent filling out employment and income verification requests.

“HR departments love us because they don’t have to worry about filling these requests anymore,” says Zaidi, “and consumers love us because now they don’t have to worry about being the middle man between HR and the bank.”