The following is an objective review of XMED Chain ICO. The review is based on certain criteria, which we think are important for an ICO project to succeed. We measure a successful ICO by short term and long term ROI estimation. The following is not a financial advice.
The demand for high quality healthcare is growing worldwide due to an aging population, middle class income growth, medical insurance services, increasing medical expenditures, and income growth in developing countries.
XMED Chain (XMC) is the first user-generated application system that intends to utilize blockchain technology, artificial intelligence (AI), and big data analytical power in the healthcare field.
The system aims to collect, store, manage, and share global personal medical data under a secured system, thanks to the advantages of the blockchain and to utilize AI and big data to analyze it for tailored advice to global medical services.
The development of the system is in three main milestones. The first version is planned to go live in the third quarter of 2018. The second version will include the artificial intelligence analysis. And the third version will offer all related medical services.
XMC Is aiming for the global market, though, it will begin by penetrating the Chinese market. The founding team consists of the founder of “Health Without Borders Limited”, the Convener of the Hong Kong Specialist Care Foundation (HKSCF) and more. XMC is advised by top people, among them is a founding member of Baidu (the ‘Google’ of Asia).
XMC is looking to raise 22 Million USD, the pre-sale is ongoing, and the public sale to launch it is in Q2 2018.
Let’s get going with our evaluation!
Background- Issues in the healthcare industry
Improvements in living standards and technological advancement have brought people to seek high quality medical services. By doing so, they spend more money on medical services and insurance. The demand for these services has gone beyond local limits and has expanded to other countries.
Medical data storage is scattered, and data sharing is difficult. There is no standard format for medical data storage. In most cases, patients need to collect and provide their own medical records to different institutions. As there is no existing system effectively sharing medical data directly between institutions, a lot of resources are wasted sorting and maintaining scattered medical information in various formats.
The digital work-flow itself also brings network security risks. The globalization of healthcare services makes it difficult to rule out data security risks. Global healthcare providers, patients, and drug and equipment manufacturers need a secure and reliable information technology system to manage medical data, thereby achieving interoperability and a patient-centered, value-based and efficient service system.
Medical institutions manage medical records, and the patients have a lack of authority concerning those records. Therefore, patient’s privacy protection largely depends on those institutions. Mishandled medical data, like accidental leakage of sensitive data, can cause serious consequence.
Lack of authority over medical records may also lead patients to distrust medical institutions. An effective medical record system that empowers a patient’s authority in the management of their medical data can help to improve the trust among patients, physicians, and institutions. It can enhance patients’ compliance, effectively improve quality of care, and prevent medical malpractice.
The application of AI and big data analysis continue to develop in the field of healthcare. At present, the existence of diverse, fragmented and invalid medical data means that it is difficult to achieve accurate and efficient analytical results. The rapid accumulation of medical information by the blockchain can form a valuable database for big data analysis, and eventually realize highly accurate diagnosis and treatment consultation by AI.
There is an information gap where the distribution of quality medical resources is unbalanced, some areas have inadequate medical resources, whereas other areas may have an excess of medical resources. The mismatch of medical resources hinders the quality and efficiency of healthcare. Patients searching for medical information on the Internet may receive unreliable information, false treatment advice, and other dangerous results. Medical big data analysis can provide unified, transparent, and reliable medical information, reduce the knowledge gap, and promote fair allocation of medical resources.
Global Medical Market Size
In the past ten years, we have witnessed income growth in developing countries and a corresponding higher demand for global and cross-border medical services and medical insurance. The outlook for 2018 is that the global market for medical services will reach over 8 trillion USD, and demands for cross-border medical services will reach 421 billion USD.
Figure 1– global medical market size
The following is a comparison between healthcare projects based on blockchain technology to the XMED Chain project.
Deepmind health (company) – A potential competitor. Part of the Alphabet group. The company is building a new technology named Verifiable Data Audit which is a useful tool allowing hospitals to track patients’ records and treatment in real-time to check how they’re processing data.
This system has some properties of the blockchain technology – the saved record data would be in a digital ledger. The ledger will be append-only, so once a record of data use is added, it can’t later be erased. And like the blockchain, the ledger will make it possible for third parties to verify that nobody has tampered with any of the entries.
This company has two main advantages – it is a part of the Alphabet group and has had vast research experience of artificial intelligence since 2010. Deepmind is trying to solve a broad spectrum of social problems, unlike XMC which is more focused on healthcare services.
Synthium Health– ICO is ongoing.
The ‘Alibaba’ of the healthcare market. By providing a streamlined and direct link from medical supplies manufacturers to medical providers Synthium will be instrumental in drastically reducing cost while maximizing profit and/or lowering healthcare prices for patients.
Compared to XMC, Synthium focuses on lowering costs to the healthcare industry, whereas XMC is patient oriented.
Simplyvital health – USA. ICO is to launch in early March,
Healthcare startup service that utilizes blockchain technology to simplify medical records.
Compared to XMC this system doesn’t include artificial intelligence and doesn’t emphasize the analytic aspects of the stored medical data.
SmartHealthcare – Estonia. ICO is ongoing.
Individual oriented decentralized healthcare eco-system integrating and processing health-related data collected from different data sources. An individual has a better overview of their current health status and can easily send collected data for anonymous analysis performed by AI that results in different notifications.
Compared to XMC, this project doesn’t emphasis artificial intelligence and the team is smaller and less experienced.
Proofwork – ISRAEL. The ICO hasn’t launched A democratized health and wellness ecosystem using the blockchain to self-govern data and improve care.
Compared to XMC this project is newborn, without any mention of artificial intelligence, but the team has broad experience.
The XMC system combines the technologies of blockchain, AI, and big data and establishes a secure, decentralized, and comprehensive data management system, enabling safe and efficient data exchange within and between a variety of users.
XMC consists of three parts: the private chain, the consortium chain and the public chain (Figure 2). The private chain is for a smart contract system interface and node management. The consortium chain is for connections within and between institutions, such as insurance companies. The public chain is for data upload, authentication, and sharing.
Figure 2– XMED chain basic structure
The XMC system is also divided into three terminals, enterprise (SaaS), Users, and System Administrator (Figure 3). The enterprise terminal can carry out data management system docking, user registration, retrieving medical records and other management functions. The patient terminal provides a platform for medical record upload, AI analysis, authorize record usage, and other functions. The management terminal can provide smart contract management service, node permission, and other management functions.
Figure 3 – XMC Platform Features
One of the innovative ideas in this system is using AI (see AI section below) and big data analysis. Users can obtain quality search results by uploading medical records (Figure 4). Users without medical records can also make a partial analysis based on available information.
Figure 4 – XMC application showcase: wallet, product purchase, GP booking
The XMC Token will be circulated in the XMC ecosystem, designed for all users who contribute to a harmonious, shared economic ecology. The XMC Token rewards a user’s verification tasks. This can effectively reduce malicious behaviors. In the XMC ecosystem, a shared environment is created to benefit all users (patients, physicians, and healthcare related institutions) and ensure accurate and effective medical data exchange. The core value of the XMC system is based on medical data management and providing analysis to users with payment of tokens. During a user’s registration, the system will automatically issue a certain amount of XMC tokens to the user as a registration reward.
The user can obtain tokens by uploading a medical record or assisting in verification of medical records. Users can pay tokens to obtain health service information generated by AI analysis.
By accessing XMC tokens, users can:
- get XMC rewards by uploading medical data
- get XMC rewards by verifying medical data uploaded by other users
- get XMC rewards by assisting secondary identification for AI analysis
- use XMC tokens for services, such as obtaining medical advice and purchasing medical services and medical insurance;
- manage token assets, which can be converted to other currencies and investment value.
Figure 5 – functions of the XMC token
Example of how XMC token will be used in the platform
After users register accounts in a PC or mobile application, medical records can be transmitted to the public server (public log) in the form of image files. Other nodes on the server verify the authenticity of the medical records. The verification of medical records uses the “consensus / AI/encryption algorithm” technology to ensure immutable and secure data upload, verification and transmission. Individual users have primary stewardship over personal data.
Example: User A uploads his medical record to XMC (Figure 6), every user that shares their medical data receives XMC Tokens as a reward for their contribution. Other users on the XMC network can verify the medical record uploaded. If proven valid, the access right of the medical data is managed by user A. In the future, User A can authorize physicians and medical institutions to access his medical information when needed, reducing redundant data entry work, preventing error, and improving medical efficiency.
The data verification process uses AI to identify contents, including but not limited to – hospital name, stamp (signature), test items, examination results, department name, physician’s name, test time, and chats. Through the AI system, nodes determine and verify data in six and more fields to reach consensus, that is, to determine the validity of the medical record. The medical record is then automatically stored in the data block, waiting for subsequent identification and translation jobs.
After verification of the medical data, the system converts it into smart contracts and stores them on the blockchain. Smart contracts of medical data can be efficiently applied to a variety of healthcare-related scenarios. The anonymous data will be analyzed by the AI and big data analytical system. After being analyzed, User A for himself or otherwise, User B such as an institutional company, can get accurate consultation results with high efficiency and quality.
Institutions will use the information through the implementation of an agreed smart contract on the XMC virtual machine (XVM). This API for smart contracts allows institutional users to perform data “transactions” and “transaction result queries.” Institutions can jointly safeguard the interests of users through API mutual supervision. Under this mechanism, medical data is shared securely, and the price and other information of medical, insurance and manufacturer services becomes transparent.
The AI will take part in functions such as:
Data verification – The data verification process uses AI to identify contents, including but not limited to hospital name, stamp (signature), test items,
examination results, department name, physician’s name, test time, and chats. Through the AI system, nodes determine and verify data in six and more fields to reach consensus, that is, to determine the validity of the medical record. The medical record is then automatically stored in the data block, waiting for subsequent identification and translation jobs. For each piece of medical data, AI will identify the contents. Recognized results will generate interactive data. For more reliable results, the consensus mechanism of blockchain technology is used, so that each node (peer) can perform secondary identification on the interactive data.
Converting to text format – the system will convert data into a text format. The text content can be translated to the user’s default system language, and data will be stored in a decentralized manner. Users can enter their own authentication information (public key / private key) into the XMC application to view personal records. AI technology can automatically recognize verified medical records data, and use OCR technology to translate them after identifying the content. Translation results will be shown to users using a Proof of Work (POW) reward mechanism.
Intelligent match of medical data – After aggregation and verification of medical records, the XMC system maximizes the value of data to match users with optimal medical resource information using AI and big data analysis. The XMC system searches and matches data in the database using AI technology. AI performs intelligent screening on different levels of results, optimizing medical resources, and realizing higher level utilization of AI in the medical field. Users can obtain quality search results by uploading medical records. Users without medical records can also make a partial analysis based on available information.
Example: 10,000 medical records of lung cancer patients are uploaded to the XMC system. The records are then verified and stored in the database. When other users have consultation needs, the AI and big data back end technology will perform intelligent search and matching to generate corresponding results to users.
XMC and cooperating organizations can provide a wide range of corresponding health services. Ultimately the XMC system will achieve a strong linkage and sustainable business cycle in the global healthcare industry (Figure 7).
The main revenues will originate from patient and institutional resources. Patients can obtain an analysis of their medical records which were uploaded by them. Users with no medical records can also make an analysis based on available information.
It seems that the core revenues will come from institutions that will take advantage of the mass analyzed data. Using API docking, the XMC system can connect to data systems in enterprises, such as HIS, ERP, CRM and others. Under a patient’s authorization, authorized enterprises have access and editing permission to the users’ medical records. The main targeted institutions are:
- Medical institutions which can Improve medical services management and provide insurance advice. One of the popular services that was mentioned above are global overseas services which can improve and utilize their revenues.
- Healthcare suppliers and pharmaceutical manufacturers can verify authentic products, and establish a centralized procurement transaction mechanism for drugs and equipment, and optimize the supervision and management.
- Insurance companies can shorten the processing time for claims.
Provide intelligent recommendations for health insurance investors, and use the data collected for insurance product research.
- Biotechnology companies can use the analysis benefits to lower the cost of R&D.
Figure 7– online and offline business model
The core technology components include the basic components, protocols, and algorithms on which the blockchain system relies, and further subdivides the four layers of communication, storage, security mechanism and consensus mechanism.
Validation of the medical records – Under the effect of the consensus mechanism, only when the majority of nodes (or multiple key nodes) of the whole network think that a record is correct can the authenticity of the record be recognized by the whole network, and the recorded data written into the block.
Artificial intelligence – there will be three levels of artificial intelligence industry – basic layer, the application of technology and product service layer
The basic technology layer includes artificial intelligence chip, machine learning algorithm, and framework and other basic support technology.
Application technology layer includes voice technology, image technology, semantic technology, and robot technology so that the machine can listen, can see, can think, and can say using dynamic technology.
Product service layer refers to the products or services that produce artificial intelligence technology in a specific vertical industry, including automatic driving, intelligent security, intelligent finance, intelligent medical care, smart home and intelligent robots.
Q3 2018: XMED Chain 1.0 launched. Start covering major Asian countries such as China, Hong Kong, Japan, and Korea.
Q2 2019: XMED Chain 2.0 which is equipped with artificial intelligence analysis launched. Start expanding to Australian, American and European markets.
Q4 2020: XMED Chain 3.0 launched. Global Medical Data is on the blockchain and covering 20 cities in the world.
Tsz Hin Law, Penny – Founder, CEO.
Founder of Health Without Borders Limited, former sales manager of Sony Corporation, University of Management and Technology (BBA).
Doctor Shun Tung Lau, Benjamin – Co-founder.
Fellow of the Hong Kong Academy of Medicine, convener of Hong Kong Specialist Care Foundation (HKSCF).
Wei Cong – Co-founder .
Rich experience in Baidu, China and Baidu overseas marketing, founder of Baidu overseas sales channels, co-founder of CTV Internet video company.
Chao Wang – Co-founder, COO
Division director of ZUBA platform O2O, head of operations of the Xueba Project, operations director of Lashou Web, the third party platform responsible person of the national information center commissioned by the State Administration of Industry and Commerce, vice president of operations of China trade 2cn of China International Electronic Commerce Center.
Manages the Sichuan red construction medical fund, a 20- billion-yen buyout Fund, and cross-border high-tech venture capital funds. Co-founder, Chairman & CEO, founded the IOB Fund.
Baidu’s founding team; former general manager of Southern China District; Vice president of Baidu Inc at present.
Partner of DFJ Dragon Fund-Draper Dragon. Masters Degree in Telecommunications and Engineering. Chiao Tung University, Taiwan.
Co-founder of digital asset fund Badwater Capital, working at DFJ Dragon Fund, located in Silicon Valley.
Master of Medical Information in Fairleigh Dickinson University, USA. Master of Cardiology at Wuhan University, China. Ph.D. in Biomedical Engineering in Tsinghua University (Taiwan), and PhD in Public Health at Johns Hopkins University, USA. General manager of operations at Shanghai Kangcheng Hospital Management Consulting Co., Ltd, and senior consulting at Yiguantong School.
To explore all team members, please visit XMEDchain.com
Token Sale (ERC-20)
Hard cap: 22 M USD.
Token allocation: Finite number of tokens- 700,000,000 XMC. 31.4% distributed to public.
Invite only Private sale (5M USD): Finished. Lockup period and Bonus given- no to be disclosed.
Invite only Private pre-sale (10M USD): Ongoing. Lockup period and Bonus given- no to be disclosed.
Public Pre-sale (4M USD): starts mid-march 2018. 15% bonus, 50% lockup on the bonus portion for 3 months, individual contribution limits – 15ETH – 50ETH.
Crowd-sale (3M USD): Date TBD. Individual maximum cap is 10K USD, No lock up.
The project is very ambitious and will confront both technical and go-to-market challenges. Among XMED Chain’s founding team is the founder of “Health Without Borders Limited” and the convener of Hong Kong Specialist Care Foundation (HKSCF). Among its advisors is Jiping Liu, who took part in the founding of Baidu (The ‘Google’ of China). The team’s experience and connections in the medical industry should help them to build a successful platform and to penetrate into the medical market.
Entering 2018, two things are clear – the first one is the fact that healthcare is ripe for disruption since there is a lack of a utilized global standard system that can track and compare optional health services as well as prices around the world. The second one is that there is a massive opportunity for blockchain technology to lead this transformation mainly due to the benefits of the communication, storage and security virtues. The main innovative idea here, compared with other competitors, is the combination of blockchain technology with artificial intelligence (AI) and big data analytical.
Use of the XMC token
XMC tokens will be consumed by users wishing to buy medical services on the XMC platform. In order to lower the barriers of entry, XMED Chain decided to also accept fiat on their platform. The main reason for a user to use XMC tokens is to lower costs (5-10% discount). Purchasing with XMC could lead to a large discount for the user (Medical services are pretty expensive). The fact that the services on the platform can be bought with currencies other than XMC tokens lowers the correlation between the success of the platform and the demand for the token.
CryptoPotato ICO Evaluation – result
Key for the evaluation: IF = Impact Factor WA = Weighted Average
Team and advisory board: Founding team has tremendous experience and connections in the Medical industry of Hong Kong. Score 8.5
Stage of the project: XMC 1.0 version which can generate individual information based on the blockchain is ready for implementation. XMC 2.0, equipped with AI Analysis ability is to launch in Q2 2019. Score 7.5.
Project potential: XMED Chain aims to take a piece of the healthcare industry by connecting patients with AI technology and allowing them to control their medical data with the use of blockchain tech. Score 8
Community and media:~4,700 Telegram members, ~190 Tweeter followers, XMC only recently revealed its project to the Western community. Score 7.5.
Token use: With XMC tokens customers can buy medical services offered to them with 5-10% discount compared to using other currencies. Score 7.5.
ICO Terms: Hard cap of 22 M USD, early contributors bonus and lockup period not to be disclosed. Score 8.
Whitepaper: Detailed, lack of user-flow explanation and the connection with the blockchain architecture is missing. Score 8.
Backend and Technology: A good use case for Ethereum smart contracts. The algorithm is not described in detail. Score 8.
CryptoPotato XMED Chain ICO score: 7.88/10