I think this whole 23andMe situation might be the watershed moment where in the future, people will likely end up owning their data, and blockchain technology will be a big part of that solution.
In the wake of 23andMe's bankruptcy, the conversation around medical data ownership has sparked intense debate and fears surrounding who has access to 15 million customers' data. How to properly protect data in an environment that feels more dangerous and dystopian by the day is a question plaguing businesses, countries, and everyday citizens.
Junaid Mian, Venture Partner with 1435 Capital, which focuses on growth stage companies from Seed through Series C across multiple industries, believes the answer lies in blockchain, adapting the technology to protect vulnerable health data.
Market evolution: "Health data can be misused in so many ways," Junaid warns. "I'm a big proponent of people owning their own data. Before, we didn't have the mechanisms to do that, so we just gave it up in order to get free products. The 23andMe situation represents a business failure that may create space for new, more privacy-focused approaches to genetic testing services. While not technically 'creative destruction' in the economic sense, it highlights how consumer concerns around data privacy could drive market evolution toward more secure models."
Blockchain as defense: According to Junaid, blockchain technology offers unique advantages for authenticating and protecting personal health information. "Blockchain provides a system that enables individuals to protect their privacy and validate their identity as they interact with other entities through their data. Rather than storing sensitive information directly on-chain, blockchain would serve as an access control layer, maintaining permissions and creating tamper-proof audit trails while the actual genetic data remains in secure, encrypted databases."
Watershed moment: Junaid suggests that 23andMe's struggles could serve as a valuable lesson for future companies handling sensitive health information. More importantly, he believes it could mark a turning point in how we approach medical data ownership, leaning on blockchain as a form of protection. "I think this whole 23andMe situation might be the watershed moment where that transition happens," Junaid explains. "In the future, people will likely have more control over their data, and blockchain technology could be part of that solution."
Blockchain represents a way to maintain health data integrity and privacy. If we continue on our current path, the outcome won't be benevolent—it will be malevolent. The market simply doesn't incentivize positive behavior when it comes to data privacy.
Data monetization potential: The transition toward personal data ownership could have economic implications as well. "While traditional employment will remain dominant, data monetization may become one component of future economic models," Junaid predicts. "People may receive compensation for consenting to specific, limited uses of their anonymized data for research or development. But to get paid and maintain control, you need a secure way to verify data ownership. Blockchain offers a viable path to accomplish that."
Benevolence vs. malevolence: Junaid emphasizes that the current trajectory of health data management is concerning without tech intervention. "Blockchain represents a way to maintain health data integrity and privacy. If we continue on our current path, the outcome won't be benevolent—it will be malevolent. The market simply doesn't incentivize positive behavior when it comes to data privacy."
Selective privacy through cryptography: The advantages of blockchain for medical privacy extend to security concerns as well. "Blockchain technology offers selective privacy through cryptographic techniques," Junaid explains. "Rather than complete anonymization, it enables users to control what information they share and with whom through cryptographic keys and verification methods. A well-designed system would implement multiple layers of security, creating significant barriers while providing transparency about access attempts."
Genetic discrimination concerns: Junaid points to concerning scenarios we should work to avoid: "We need to prevent situations where companies say, 'We're going to deny you service because your genetic profile indicates you'll develop a health issue in five years.' Genetic discrimination is a legitimate concern, which is why laws like the Genetic Information Nondiscrimination Act exist in the US. While documented cases remain relatively rare, strengthening these protections becomes increasingly important as genetic testing becomes more widespread."
