Revolutionizing Biotech: Paul Kohlhaas discusses decentralized science and open innovation

In a recent episode of the SlateCast, Paul Kohlhaas, the founder of BIO Protocol, joined CryptoSlate CEO Nate Whitehill and Senior Editor Liam “Akiba” Wright to discuss the future of biotechnology through decentralized science (DeSci). Kohlhaas explained BIO Protocol’s vision for revolutionizing biotech funding and research by utilizing decentralized, open-source methods.

Biotechnology as the Substrate for Life

BIO XYZ represents more than a typical biotech initiative. As Kohlhaas explained,

“BIO XYZ stands for a movement to not be afraid of biotechnology, to like embrace it, and that it should be much more open source, back in the hands of the people.”

The concept draws from “bio-accelerationism,” echoing the AI acceleration movement in the tech world. Kohlhaas argues that biotechnology should be considered a new “substrate for life,” akin to how artificial intelligence became a new substrate for intelligence.

Kohlhaas elaborated on the fear surrounding biotechnology and genetic engineering, drawing parallels with the early fears surrounding AI.

“People are afraid of genetic engineering and new biotechnological advances. However, just as AI has seen a movement to decentralize it, we believe biotechnology should be back in the hands of the people.”

Empowering Patients and Scientists with DAOs

BIO Protocol’s core innovation is decentralizing biotech research by connecting scientists, patients, and investors through decentralized autonomous organizations (DAOs). These DAOs allow communities to fund research that addresses specific medical challenges directly. Kohlhaas highlighted VitaDAO as a successful example, stating,

“VitaDAO funded research into autophagy activators—substances that help healthy cells eliminate old cells—leading to novel drug developments.”

In this decentralized model, patients can have a more significant role, providing funds and valuable insights. “Patients often know what’s best for them,” Kohlhaas remarked, emphasizing the importance of involving patient groups in early-stage biotech research.

Bridging the Funding Gap in Drug Development

One of the most critical gaps in biotech research, known as the “Valley of Death,” is the lack of funding between initial discoveries and clinical trials. Kohlhaas explained that many promising treatments never reach the market due to this funding gap.

“On average, it costs around $2.6 billion and takes 10 years to bring a single drug to market. Most of the cost stems from failed drugs that enter the pipeline,” he noted.

BIO Protocol aims to address this by allowing DAOs to bridge this gap, ensuring that research with high potential receives the necessary funding. The decentralized approach also provides more transparency and public involvement, starkly contrasting traditional biotech, which is often conducted behind closed doors.

Decentralized Science: Addressing Ethical Concerns

Wright and Whitehill raised a key concern about the ethical considerations of decentralized biotech research. In response, Kohlhaas stressed that self-regulating systems could offer a better alternative to top-down government regulation.

“Ethical concerns are critical, but I believe in self-regulating systems that allow for open public scrutiny,”

he said, advocating for transparent, decentralized science.

Kohlhaas also pointed to the importance of transparency in drug development, referencing the controversy surrounding the COVID-19 vaccines.

“Some of the data from the first vaccine trials is locked up for 55 years. Decentralized science could prevent such secrecy by making data more accessible and putting development back into the hands of the public,” he added.

Pharma’s Growing Interest in Decentralized Innovation

Interestingly, the pharmaceutical industry itself has shown interest in BIO Protocol’s approach. According to Kohlhaas, large pharmaceutical companies are beginning to see the value in decentralized science. Pfizer Ventures, for example, invested in VitaDAO in 2023.

“Pharma needs constant innovation, and they see DeSci as a way to access more innovation while reducing the risks involved in traditional biotech development,” Kohlhaas explained.

The model also allows for faster funding and development cycles. Kohlhaas cited a project at Newcastle University, funded by VitaDAO, that went from proposal to funded research in just three weeks—an unprecedented speed in the biotech world.

The Future of Biotech: Rapid Experimentation and Collective Intelligence

As decentralized science continues to evolve, the BIO Protocol envisions a future where biotech research is conducted openly and collaboratively. The DAO model enables communities to collectively fund projects and participate in clinical trials, offering a more inclusive and efficient path for drug development.

“If there was a DAO for a new diabetic treatment, and people began allocating capital, we could organize clinical trials on a scale that was previously impossible,” Kohlhaas suggested.

In addition, Kohlhaas mentioned ongoing projects like “Pump Science,” which allows the public to bet on live experiments in animal models such as worms and flies. This approach aims to accelerate the pace of experimentation and encourage public engagement in scientific research.

BIO Protocol’s decentralized approach holds the promise of democratizing biotechnology, empowering patients, scientists, and the public alike. With the growing interest from both the scientific community and the pharmaceutical industry, decentralized science could play a crucial role in shaping the future of healthcare innovation.