What is an NFT?
An NFT is a one-of-a-kind digital asset linked to blockchain* that can be accessed or transferred but has no tangible form of its own. Virtual or physical assets can be turned into encrypted “tokens”, which can lead to the creation of verifiable and authenticated digital certificates. Unlike money, NFTs are not mutually interchangeable.
NFTs are recorded and stored in the blockchain and therefore records of ownership are difficult to forge since blockchain is maintained by a network of thousands of computers and servers worldwide.
NFTs and the hype
We believe NFTs can be compared to the dot-com boom in the late 90s, the rise of Twitter, Facebook and most recently, TikTok. The potential of neither of these platforms was initially understood but they morphed into titans of the entertainment industry the more we used them. We, the users, and these platforms, figured each other out as the supply, services and demand evolved.
Another factor contributing to the NFT hype is the fear of missing out. Why? Maybe because many people did not understand technologies such as Bitcoin in its infancy and missed out on a great financial opportunity.
Some NFTs have been sold for millions. Yes, millions! Here are some examples of NFTs which were sold for $1 million or more:
- Kevin Abosch: Forever Rose – $1 million
- Beeple: Crossroads – $6.6 million
- Beeple: Everydays—The First 5000 Days – $69 million
Something they all have in common is that they are art. Anyone can tokenize their artwork and sell it as an NFT. However, it does not stop work from being replicated online, so why the hype? Understanding this hype would require a deep learning of the human psyche. The hype seems to be more than just rich people splashing on what the “new trend” is, despite a limited understanding of its implications.
What is the potential of NFTs?
We believe once the hype abates and the understanding of NFTs mature, there will be two types: transferable and non-transferable tokens.
Transferable NFTs:
- Artwork token
- Car ownership token
- Property ownership token
- Company ownership and registration token
- Company shares tokens
- Electronic health record token (data could be sold for research purposes)
Transferable NFTs could be lawfully exchanged for a fiat currency or cryptocurrency value and allow you to buy or sell material goods.
Non-transferable NFTs:
- Passport token
- National ID card token
- Birth certificate token
- Bank account token
- Electronic health record token (private where data is not sold)
- Sports statistics token (for example, if a player in any sports achieves statistic milestones, the data can be updated as an NFT where it can be stored and accessed within a network)
Non-transferable NFTs could complement paper and digital records of a personal nature. They could serve to validate someone’s identity and health records.
To fulfill the potential of NFTs, a trusted and reliable digital infrastructure needs to be created. There may be an opportunity for the rise of NFT management and broker companies to oversee transfers at the cost of an operating fee.
If you purchase an NFT artwork worth millions, you may want to display it on your social media, at your home and at museums amongst other places, which can lead to the creation of a new industry of NFT integration and authentication services and platforms.
How can NFTs be used in healthcare?
NFTs are not widely used in healthcare, however, as the market evolves, we may see increased use in the manufacturing, logistics and supply chain, data transfer (especially as digital healthcare technologies surge), patient-centric data management and potentially in mergers and acquisitions (M&As) of pharmaceutical and technology companies.
Manufacturing, logistics and supply chain:
- The use of NFTs and blockchain can support the fight against counterfeit pharmaceuticals by streamlining the authentication process
- Each product batch and stock-keeping unit (SKU) could have its own NFT identifier
- Stakeholders may be able to track their product and address any issues more accurately and efficiently
Data transfer
- As big data volume and needs continue to grow, there is an increased demand to categorize, store, and analyze data
- NFTs can have a role in the categorization process and help data owners track the “data journey” to optimize services
- Payers and insurers may adopt NFT technology to monitor access and quality of patient treatment
Patient-centric data management
- There have been many discussions about patients owning their data as wearable, smart home and interconnected devices are progressively more common
- NFTs can support patients in choosing which data they share or sell and would allow them to track how those data are used and by whom
- This is where trusted NFT management services could be utilized to support data transactions and monitoring on behalf of patients
M&As
- Company ownership and details can be kept as NFTs for authentication purposes
- The movement of shares can also be tracked using NFTs, which will facilitate regulation processes
Conclusions
As we speculate on the early use of NFTs in healthcare, we understand that it is too soon to draw any accurate conclusions. There is a need for better infrastructure and education around NFTs, especially at the government level.
We expect private players to drive the expansion of NFTs across multiple industries and drive collaborations with the public sector.
In healthcare, the impact is not expected immediately however, NFTs have the potential to shape care delivery and how data are transferred, stored and analyzed.
There are many potential barriers that need to be overcome before NFTs can be widely adopted across healthcare services.
Below are some important questions that need to be addressed before adopting NFT technology in healthcare:
- How can NFTs optimize healthcare?
- When will there be an infrastructure for NFTs within healthcare?
- Who owns the data? Payers, health authorities, patients or private players?
- Can ownership be shared? If so, how?
- Who has access to the data? Is the process transparent?
- Are NFTs reliable and secure?
#NFTs #healthcare #blockchain #cryptoart #defi
* Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack or cheat the system. Blockchain is a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain a record of that transaction is added to every participant’s ledger.
Sources
https://www.bbc.com/news/technology-56371912
https://edition.cnn.com/2021/03/17/business/what-is-nft-meaning-fe-series/index.html
https://news.artnet.com/market/most-expensive-nfts-1952597
https://www.euromoney.com/learning/blockchain-explained/what-is-blockchain