Decentralized Science (DeSci) Poised to Evolve Like Early DeFi, Says Crypto VC

Andrew Kang, founder and partner at the crypto-focused venture capital firm Mechanism Capital, compared decentralized science (DeSci) to where decentralized finance (DeFi) was in 2019—an emerging, experimental sector with immense potential. In a post on X (formerly Twitter) on November 24, Kang highlighted that while DeSci projects are still in their infancy, they hold significant promise for reshaping the future of scientific research and innovation.

DeSci: Early Days but Huge Potential

Kang explained that DeSci is still in its raw and experimental stage, much like DeFi protocols such as Maker, Synthetix, and Aave were just a few years ago. “Everything is still raw, experimental, but there’s an underlying understanding that there is massive potential,” he said, emphasizing that, just as DeFi projects refined their models over time, DeSci protocols are likely to evolve before reaching market maturity.

Notable DeSci projects Kang is keeping an eye on include BIO Protocol, Pump Science, and GLP1. BIO Protocol enables users to co-own the development of "medicines of the future," while Pump Science offers a platform for trading tokens linked to longevity medicines. GLP1, on the other hand, is focusing on health initiatives with its tongue-in-cheek mission to "Make America Skinny Again." Mechanism Capital has also invested in BIO Protocol’s latest funding round.

What is DeSci? A New Frontier for Science and Healthcare

DeSci is a revolutionary concept that leverages blockchain technology to drive community-driven scientific research and collaboration. It integrates elements like tokens, NFTs, and decentralized autonomous organizations (DAOs) to incentivize innovation, decentralizing traditional scientific processes. These protocols aim to address critical issues in science, such as flaws in the peer review system, and are even exploring futuristic solutions like cheaper genetic testing and treatments for conditions such as baldness.

The broader DeSci movement emphasizes citizen science, aiming to democratize access to scientific knowledge while reducing the influence of large institutions, such as pharmaceutical companies. The emergence of DeSci was accelerated by the COVID-19 pandemic, which sparked a desire to find more efficient and accessible ways to tackle global health challenges.

DeSci’s Potential for Transparency and Security

DeSci’s utilization of blockchain technology could fundamentally change the landscape of scientific research by making data more accessible to researchers, healthcare professionals, and patients alike. Blockchain’s built-in transparency and security features could also protect against the growing threat of cybersecurity breaches in the healthcare sector.

Cyberattacks on healthcare organizations have been on the rise, with ransomware attacks on firms like Kaiser and Welltok exposing sensitive personal and health-related data of millions. Blockchain, which is known for its robust security protocols, could provide a solution to these vulnerabilities by offering a more secure and transparent method for storing and sharing data.

DeSci’s Market and Key Players

The DeSci sector currently boasts a market capitalization of $1.2 billion. The market is led by OriginTrail (TRAC), valued at $374.9 million, followed by Rifampicin (RIF) at $133.1 million, and VitaDAO (VITA) at $124.7 million, according to CoinGecko. These projects represent a growing sector that’s exploring new ways to revolutionize scientific research, healthcare, and even the business of medicine.

The Road Ahead for DeSci

As DeSci continues to develop, it is likely to undergo significant changes and refinements. Much like early DeFi projects that iterated on their initial models, DeSci protocols are expected to evolve to better meet market needs and attract broader adoption. With massive potential and a growing market, DeSci could redefine how scientific research is conducted, making it more transparent, accessible, and secure for everyone involved.

The movement is still in its early stages, but the progress seen so far suggests that DeSci could have a profound impact on both science and healthcare in the years to come.