X Genomics: to Maximize the Value of Gene Data with Blockchain Technology
As we all know, genes are the carriers of human genetic information, and to a great extent determine human traits, behaviors, health, disease, appearance, and even personality. Therefore, genetic data is extremely valuable for both individuals and the whole as human race. Genetic data can help users predict diseases, assess nutritional needs and avoid ineffective drug treatment. Also, it can be used to screen genetic defects and cancers, diagnose incurable diseases, and identify and authenticate people’s identities. Furthermore, genetic data is the basis for the study of disease mechanisms and the research and development of new treatments and drugs. It is safe to say that genetic data not only promotes the development of life sciences but also are capable of changing the health, medical, nutrition, insurance, and financial industries.
However, for the time being, it is quite difficult for most genetic testing enterprises to accumulate a large amount of genetic data, mainly because of the high cost of genetic testing and its low popularity among the public. Consequently, although consumer-oriented testing enterprises have worked hard to promote their services with heavy investment, and offered their testing services with small or even zero margins, they are still unable to attract as many consumers as expected. Delightedly, there are still some companies that are appealing to consumers, such as “23 and Me” “Decode Genetics” “DNADirect” “Genelux,” etc. Their quality genetic testing services helped them earn wide recognition from consumers and in turn intensified the public’s interest in genetic testing. With the public’s growing interest in genetic testing, such problems as the high cost of consumer-oriented genetic testing, high market education costs, and policy risks should be solved.
As a matter of fact, the value of genetic data is conditional on three factors: the amount of genetic data, the number of users, and whether it has a full range of phenotypic data. The research and application of genetic data can bring along with it network effects. The value that 100,000 genomic users bring is not 10 times as large as the value that 10,000 users bring, but 100 times or even more. Also, the amount of information and data value provided by the same person resulting from different testing items can be also quite different. Specifically speaking, data information resulting from 100 detected sites is completely different from that resulting from hundreds of thousands of detected sites, though provided by the same person. So, data information resulting from a whole genome sequencing with abundant phenotypic information can be a treasure of genetic data.
For the purpose of solving these problems, X Genomics intends to unite all gene sequencing enterprises to build a Gene Sequencing Alliance with blockchain technology so that genetic data can be publicly shared and bring benefits to all parties. In the light of decentralized, encrypted, and privacy-protected features of blockchain technology, genetic data can be securely stored on the X Genomics blockchain. This will greatly expand the network effect and increase the amount of available genetic data, thereby maximizing the value of genetic data. Meanwhile, with a token-based economics system, genetic data will be monetized. That is to say, after uploading genetic data to the X Genomics blockchain, users can get tokens in return, and then use these tokens to purchase medical, health and physical examination services, wearable devices and other services from X Genomics’ cooperating institutions on the token system. Thus, more users’ phenotypic data can be generated and the value of genetic data can be further enhanced.
Therefore, X Genomics will serve as the synthesizer and amplifier of genetic data. It will maximize the value of genetic data of users and sequencing enterprises through the integration of “gene + blockchain” technology, and reduce the cost for genetic data for medical, insurance, pharmaceutical, and other relevant institutions to get access to required genetic data. In particular, the shared and win-win cooperation model will promote the prosperity and development of SMEs in the genetic testing industry, enabling their limited genetic data to generate maximum value. Reassuringly, the unique security and privacy protection features of blockchain technology will provide technical guarantees with assurance that all relevant businesses are conducted in compliance with relevant legal regulations and ethical practices.
