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We’ve all heard about Bitcoin—the first decentralized cryptocurrency. From overnight millionaires to market crashes, crypto has been a rollercoaster ride. Since 2008, cryptocurrencies have introduced a new era in the financial sector by enabling transactions without the involvement of any third party. But what if blockchain technology could do more than just disrupt banking? What if it could transform science itself?
Cryptocurrencies rely on an underlying technology called blockchain, which enables them to function and maintain a secure, tamper-proof record of ownership and transactions. Blockchain technology is a decentralized, distributed ledger that records the ownership of digital assets. Any data stored on a blockchain are immutable, making this technology a legitimate disruptor in industries such as payments, cybersecurity and health care.
According to Black Duck, “A blockchain is a distributed database that maintains a continuously growing list of ordered records, called blocks. These blocks are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.” Because blockchain is decentralized, distributed and public, transactions recorded on it cannot be altered retroactively without modifying all subsequent blocks and obtaining consensus from the network.
In recent years, non-crypto applications of blockchain have emerged. One of the most promising is Decentralized Science (DeSci)—a revolutionary approach that leverages blockchain to transform scientific research. DeSci is a decentralized model for research funding and collaboration, fostering transparency, rapid funding and open-source principles. By addressing the misalignment of incentives in academic research, DeSci holds the potential to drive much-needed change in science as an institution.
Blockchain in clinical trials
The integration of blockchain technology into clinical trials is a promising advancement in biomedical research, enhancing transparency, security and efficiency. As clinical trials become increasingly complex and data-intensive, blockchain offers a dispersed, unalterable and interoperable solution that fosters trust among stakeholders, streamlines trial processes and ensures compliance with regulatory standards. From securing patient data and improving interoperability to mitigating fraudulent activities and enhancing remote trial participation, blockchain is poised to transform the clinical research landscape. Let’s explore what we can expect from this integration.
Enhancing data security
Clinical trials involve multiple stakeholders, including patients, investigators, sponsors and regulatory bodies, all of whom require access to accurate data. Traditionally, data management in trials has relied on fragmented systems, leading to inefficiencies and risks of data manipulation. Blockchain serves as a unified reference framework, connecting all participants through a secure, tamper-proof ledger and ensuring data consistency throughout the trial process.
For instance, Deloitte, in its 2018 Tech Trends report, introduced the concept of a patient’s cloud-based “health passport.” This passport, stored on the blockchain, can facilitate trial matching, consent documentation and participation tracking while ensuring privacy and security. Additionally, blockchain enhances traceability in sample collection, transport and analysis—processes currently prone to human error due to reliance on spreadsheets. By linking data with physical samples, blockchain improves accuracy and boosts confidence in trial outcomes.
Facilitating virtual clinical trials
With the rise of virtual clinical trials (VCTs), blockchain provides a secure, decentralized and fraud-resistant platform for digital trial processes. VCTs allow patients to participate remotely via digital platforms, eliminating geographical barriers and improving accessibility. Given blockchain’s immutability and privacy features, it aligns well with VCT requirements, particularly in health information exchange and consent management. A study by Kuo et al. demonstrated blockchain’s feasibility in timestamping consent forms, creating an unshakeable audit trail that prevents fraud and enhances regulatory compliance. This capability significantly improves clinical decision-making, as researchers and health care providers can securely share trial data in real time, leading to faster and more accurate medical advancements.
Combatting fraud
One of the primary concerns in clinical research is fraudulent data or manipulated results, which impact both scientific credibility and patient safety. Blockchain’s transparent and tamper-proof nature ensures that trial data are permanently recorded, making unauthorized modifications easily detectable. Moreover, blockchain enables the validation of research findings through smart contracts, which securely store protocol documents and ensure they remain publicly verifiable. This feature not only enhances public trust but also allows for real-time trial monitoring, reducing the risk of data fabrication.
Additionally, blockchain prevents logistical delays and fraud in pharmaceutical supply chain management, potentially saving pharmaceutical companies more than US$300 billion annually. Through my research, I came across Pharmacosurveillance, an innovation introduced by Sylim et al., which ensures the traceability and authenticity of drugs throughout the supply chain. This system reduces the risk of counterfeit and substandard medications entering the market, further strengthening patient safety and drug efficacy.
Strengthening knowledge exchange
The health care sector operates within a data-intensive framework that requires seamless collaboration between research institutions, regulatory agencies and educational bodies. Blockchain facilitates the interoperable exchange of patient consents, medical records and reimbursements across institutional borders while maintaining compliance with privacy regulations.
Furthermore, research institutions can securely access patient data for prospective clinical trials, accelerating knowledge generation and biomedical innovation. In return, health institutions benefit from updated methodologies, tools and treatment options developed by the research community. Given the sensitive nature of medical data, blockchain’s encrypted and permissioned structures ensure that only authorized stakeholders can access specific datasets, balancing security and accessibility needs.
Blockchain and the future of biotech funding
The future of biotech funding has always been exciting and full of potential, as new therapeutics continue to advance global health. However, the expensive nature of the biotechnology industry forces it to rely on venture capital firms, government grants and initial public offerings (IPOs) to finance research and development. These traditional funding sources often prioritize low-risk, high-return projects, leaving many innovative but unconventional ideas underfunded.
In contrast, blockchain technology is emerging as a game-changer, offering a transparent, distributed and democratized funding model that could revolutionize biotech financing. In this new era, DeSci creates alternative funding channels that bypass traditional gatekeepers, allowing high-risk, high-reward projects to attract financial support from a global community of investors. Unlike conventional funding bodies that require lengthy applications and prolonged evaluation periods, DeSci enables faster decision-making and more streamlined funding processes through blockchain-based governance models.
Here are some of the key funding models enabled by DeSci:
Decentralized autonomous organizations
A key component of DeSci is the decentralized autonomous organization (DAO). Unlike traditional institutions, DAOs operate without centralized control, relying on a community-driven approach. Funding decisions are made through on-chain voting, ensuring full transparency, as all transactions are recorded immutably on the blockchain.
In the biotech sector, DAOs are being designed to fund specific research areas, giving power to scientists, patients and independent investors to influence the direction of innovation. This model fosters a more inclusive funding landscape, ensuring that financial support is allocated based on scientific merit rather than institutional bias.
Cryptocurrency-based funding and crowdfunding
Beyond DAOs, blockchain also facilitates cryptocurrency-based funding models, where researchers can issue tokens representing a stake in their projects. Like traditional crowdfunding, this model democratizes biotech investment, allowing small investors to participate. However, unlike traditional funding, which is often slow-moving and bureaucratic, blockchain-based crowdfunding enables faster capital allocation and reduces administrative barriers.
Through decentralized financing methods such as Initial Coin Offerings (ICOs) and Security Token Offerings (STOs), biotech funding becomes more efficient and accessible, opening new pathways for scientific advancements.
Patient involvement in funding
Blockchain also opens the door for greater patient participation in funding drug development. An innovative startup called Molecule has introduced a platform that allows for the tokenization of intellectual property (IP) through non-fungible tokens (IP-NFTs). This approach transforms IP into a digital asset with verifiable ownership on the blockchain, enabling a novel way for funding and collaboration.
By leveraging DAOs, patients can co-own IP and influence which treatments move forward. This model not only aligns patient interests with scientific progress, but also fosters a more equitable funding system where those directly affected by diseases have a stake in the solutions being developed.
I want to conclude that blockchain technology has evolved far beyond its origins in cryptocurrency, emerging as a transformative force across multiple industries, including health care, clinical research and biotechnology funding. Blockchain enhances data security, transparency and efficiency, addressing longstanding challenges in life sciences research and development.
On the other hand, DeSci is promising as it redefines how research is funded, conducted and shared. Through decentralized governance models, smart contracts, DAOs and blockchain-based funding mechanisms, DeSci provides researchers with alternative pathways to secure financial support, accelerating innovation without the constraints of traditional institutions.
As blockchain continues to gain traction, its integration into biomedical research, drug development and patient engagement will reshape the landscape of life sciences. While challenges remain, ongoing advancements suggest that blockchain’s potential in science is only beginning to unfold. By embracing this technology, the scientific community can move toward a more open, inclusive and efficient future, ultimately driving breakthroughs that benefit humanity.
Laya Kiani
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