Health data will now have a new form and it will be tokens. Buying or selling of health data will happen through tokens which are similar to the snacks or drink tickets offered at the movie or drama theaters. The tokens will differentiate between IPO (initial public offering) and ICO (initial coin offering).
Health data tokens: Before and after
Initially, the health data tokens were visible representations of value. For example, the Arcade tokens were actually the coins that were bought with quarters. However, the machines in the arcade network accepted only the tokens. And these Arcade tokens were valid only at a single arcade location.
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
However, now the health data tokens will be transferable as well as durable because of the blockchain. In the United States, IPOs are regulated by the Securities and Exchange Commission (under the Securities Act of 1933). But, ICOs have no government oversight except what’s built into the cryptocurrency.
An IPO helps in raising money and building the investor trust. The challenge of the initial offering is that capital markets are very restrictive at this stage. The typical IPO process consists of:
• Due diligence and pre-IPO preparation: conduct background research.
• Restated financials by peer-reviewed auditor: reassess financial position.
• Draft prospectus: create an overview of an investment offering for sale to the public.
• Valuation and issue pricing: determine proposed share valuation.
• Exchange approval: determine the trading exchange.
• Develop equity story: define the value proposition of the idea or the company.
• Initial SEC filing: file a prospectus.
• SEC review: formal review of the prospectus.
• Analyst meeting: educate potential investors.
• File prospectus delivered: submit a formal SEC filing.
• Road show: campaign in support of the offering.
• Listed and trading: initiate public trading.
ICO too, broadly serves the same purpose as that of IPO, i.e. to raise money and build investor trust.
The healthcare providers will soon issue health data tokens that offer historical proof of care. The tokens will represent a set of healthcare transactions such as diagnosis, prognosis, symptoms and lab results. Based on this information, collective actions will be taken by the patient and provider. The typical process to create token consists of:
• Participate in a healthcare event.
• Generate a set of transactions for encapsulation as a token (historical record), e.g., patient diagnosis.
• Validate the token authenticity of the issuer (digitally sign with hash, validator or a provider’s private key).
• Create a block to include healthcare transactions or health events.
• Post a validation block to a private, peer-based network.
• Broadcast the proof of validation.
• Confirm receipt of a token for the work or a set of healthcare transactions.
To know more about the IPO, ICO or the health data token system, read the complete report on CIO.
Date:May 08, 2017