Decentralised Science (DeSci)
If you are familiar with the Web3 ecosystem, you may have come across a new narrative - “DeSci” which stands for decentralised science. Is this the new hot narrative where millionaires could be made or is it just another FAD?
Let’s start by firstly defining what DeSci actually is:
Decentralised science (DeSci) is the use of Web3 infrastructure in the scientific process. Through leverage blockchain technology, DeSci enhances accessibility, collaboration and transparency in research. This is achieved through decentralising data storage and introducing innovative funding mechanisms.
DeSci operates on three fundamental principles
- Open access: research is stored on the blockchain, making it free for everyone
- Fair funding: DAOs and smart contracts allow researchers to raise funds directly from the community, reducing reliance on traditional funding institutions.
- Secure data sharing: scientists retain ownership whilst safely sharing their work to advance progress.
Okay, so now we know what DeSci is, let's dive into why DeSci is even being talked about in the first place.
Why DeSci?
DeSci aims to solve the problem in traditional science referred to as “the valley of death”. This refers to the stage between basic scientific research and real-world applications. Many promising discoveries remain underutilised or unpublished due to funding constraints, bureaucratic hurdles and inefficiencies in the research ecosystem. Blockchain technology’s transparent and decentralized nature enables open access to research, fostering alternative funding models, ensuring secure data-sharing mechanisms. DeSci aims to bridge the Valley of Death and accelerate scientific innovation.
Now much of the opportunities of DeSci actually lie in the faults of traditional science, as DeSci aims to capitalize on said inefficiencies. One could argue the competitive advantages of DeSci are directly linked to the shortcomings of TradSci. To fully appreciate the potential of DeSci and assess its suitability for the future, it is essential to first explore the challenges facing traditional science, which DeSci aims to address and overcome.
Challenges in Traditional Science (TradSci)
Currently, the scientific community is at a crossroads,as it continues to deal with the complexities and inefficiencies of traditional research and publishing systems. It has become increasingly evident that these structures may actually hinder innovation and accessibility. Here are some of the key challenges facing traditional science:
Research and Publishing
The traditional scientific publishing system is complex and slow, consisting of numerous bureaucratic hurdles. Researchers face stringent prerequisites before they can start their work, slowing the pace of innovation.
Peer Review Issues
Peer reviews can significantly slow down the communication of insights, and even create a false sense of quality assurance, as favourable reviews are often necessary for publication, sometimes taking precedence over the actual quality of work.
Gatekeeping in Publishing
Scientific journals act as gatekeepers, deciding which researchers get visibility. Their objectives don’t always align with open science, as financial interests and business goals often take priority.
High Fees
Scientific journals tend to charge exorbitantly high publication fees, especially for open-access papers. This system exploits unpaid academic labour and restricts access to research, especially for independent scholars and institutions with limited funding.
Centralization of Research Control
Traditional science is dominated by government agencies, major publishers and well-funded universities. Independent researchers and smaller institutions face challenges in obtaining funding and publishing their work due to centralised control.
Paywalls and Restricted Access
Groundbreaking research is often locked behind paywalls, limiting accessibility for independent researchers, smaller institutions and the general public.
As we've seen, traditional science faces significant challenges, particularly in terms of accessibility and transparency. The restrictive nature of paywalls and centralized control over research data not only limits the dissemination of knowledge but also hinders global collaboration and innovation. However, these inefficiencies present a compelling opportunity for Decentralized Science (DeSci) to transform the scientific landscape. By leveraging blockchain technology, decentralized repositories, and community-driven governance models, DeSci offers a promising alternative to traditional publishing systems.
How DeSci Enhances Scientific Research
Just as Decentralized Finance (DeFi) removed intermediaries in the financial sector, DeSci eliminates centralised authorities in science, advancing research through:
Increased Access
DeSci ensures research is publicly accessible by leveraging decentralised repositories like the InterPlanetary File System (IPFS), a peer-to-peer network for data sharing. Blockchain’s immutability prevents tampering and allows researchers to maintain control over their work.
Projects such as Bacalhau enable researchers to analyse data directly where it is stored, avoiding the need to download large datasets. Each computation generates an unique record on IPFS, ensuring reproducibility, transparency and efficient workflows.
Transparent and Fair Funding
Traditional research funding is often opaque, leading to favouritism and underrepresentation. DeSci promotes transparency through DAOs, as community members have the power to collectively decide which projects to support. Decentralised crowdfunding platforms such as BioProtocol and Gitcoin, use models like quadratic funding to distribute resources in an equitable manner.
When it comes to funding, many DAOs have specific focus areas. VitaDAO looks to fund research into longevity, whereas ValleyDAO addresses climate challenges.
Incentivised Peer Review
DeSci implements token-based incentives for peer review, allowing researchers and reviewers to earn tokens as rewards. These tokens can enhance reputation or provide monetary compensation in cryptocurrency. Blockchain’s transparency ensures that all peer review contributions are permanently recorded, fostering trust in the review process by preventing manipulation and ensuring accountability.
Projects such as Ants-Review introduce an incentivised peer review system on Ethereum, where professional, paid reviewers are held accountable by the community. Researchers submit payment to the protocol for their study to be reviewed, but funds are only released to reviewers if the community votes that the review meets rigorous standards.
Transparent Research Methods and Open Datasets
DeSci enhances transparency in how studies are designed and conducted. Currently, many funding DAOs collaborate with external entities, such as contract research organizations (CROs), to execute research initiatives. However, a growing number of DeSci-native organizations are emerging to drive decentralized scientific collaboration. For instance, LabDAO enables members to initiate and participate in research projects while sharing tools and services.
Enhanced Collaboration
Fosters a collaborative research environment through enabling participation from a diverse, global community, including professional researchers, students and scientists. Open data access further allows public contributions to scientific projects, promoting inclusivity and innovation.
Tokenisation of Intellectual Property
Researchers can tokenise their work using NFTs, representing ownership of intellectual property. This innovation unlocks new revenue streams, allowing scientists to directly monetise their discoveries, secure funding from a decentralised network of backers and explore novel fundraising models beyond traditional institutional support.
Molecule in 2021 pioneered the use of IP-NFTs, which serve to protect intellectual property while enabling open collaboration. Unlike traditional patents which restrict access, IP-NFTs allow DAOs to monetize their research through licensing, shared ownership, data trading and collateralization.
Market Sentiment: Why Investors are Bullish on DeSci
Decentralised Science (DeSci) is gaining significant momentum, driven by its potential to disrupt the traditional scientific ecosystem and address long-standing inefficiencies. Several key factors contribute towards the bullish outlook on DeSci:
Expanding Total Addressable Market (TAM)
The U.S. spends around $900 billion annually on research and development (R&D), while the 2022 U.S. healthcare expenditure reached $4.5 trillion. The combined market opportunity for DeSci, spanning both R&D and healthcare, is projected to approach $10 trillion over the next decade, offering significant growth potential.
Industry and Thought Leader Endorsement
High-profile figures such as Vitalik Buterin and CZ have publicly supported DeSci initiatives, hosting events such as DeSci Bangkok to promote awareness and adoption. Brian Armstrong co-founded Research Hub, a DeSci Project focused on academic research and peer review.
Addressing Corruption and Inefficiencies in Biotech
As previously mentioned, the bioscience, biotech and pharmaceutical industries face high levels of corruption, opaque funding mechanisms and restrictive data access. DeSci aims to mitigate all the aforementioned issues, improving transparency and accountability in scientific research.
Public Demand for Scientific Transparency
The global pandemic significantly increased public interest in scientific transparency and accessibility. With 57% of US adults stating they have increased trust in scientific research findings if those findings are made publicly available, with 52% of Americans stating they trust scientific findings more if those findings have been reviewed by an independent committee. The heightened trust combined with preference for open data perfectly positions DeSci to leverage blockchain technology and decentralised repositories to ensure scientific data is accessible and immutable.
Market Sentiment: Why Investors are Bearish on DeSci
Market Concentration and Over-Reliance on Key Players
DeSci’s current market structure raises concerns about an over-reliance on a few dominant players, which could hinder long-term growth and adoption. As of March 2025, OriginTrail (TRAC) and BIO Protocol account for 51.26% of the total DeSci market capitalisation, with valuations of $172 million and $136 million respectively. DeSci’s over-concentration in just two firms suggests the ecosystems is still in its early stages. If either of these projects faces operational challenges, governance issues or regulatory scrutiny, their impact could destabilize the entire DeSci market. Furthermore, if these projects fail to deliver real-world scientific breakthroughs, they are prone to experience severe price corrections, negatively impacting the entire DeSci market.
Funding Constraints In High-Stakes Research
According to Root Data, funding in the Decentralized Science (DeSci) sector reached $11.2 million in November 2024, an 18% decline compared to the previous year. Historically, the largest funding rounds in DeSci have ranged between $5 million and $10 million. Recent examples include BIO Protocol, securing a $6.2 million funding public funding round and AminoChain receiving $5million. However, these figures remain relatively insignificant when compared to the financial demands of large-scale scientific research.
The cost disparity between DeSci funding and traditional scientific R&D is stark. In biotechnology and pharmaceutical research alone, development expenses significantly exceed what DeSci funding can currently support. Deloitte estimates that bringing a single new drug to market requires approximately $2.3 billion, a sum that dwarfs the entire DeSci sector’s funding in a given year. Similarly, large-scale genomics projects, clinical trials, and advanced materials research often require hundreds of millions, if not billions, in investment.
Additionally, DeSci’s financial model presents structural limitations. While the sector promotes decentralised, community-driven funding mechanisms, these models lack the stability of traditional R&D financing. The fragmented nature of funding, reliance on crowdfunding, and limitations in securing long-term financial commitments make it difficult to sustain high-risk, multi-year research initiatives.
Without significant increases in capital inflow, DeSci is likely to remain limited to smaller-scale projects, rather than driving groundbreaking advancements in fields that require extensive resources, infrastructure, and regulatory navigation.
Accountability and Decision-Making Risks
The pseudonymous participation in DAOs can facilitate unethical activities, and core members may collude to alter decisions for personal gain. Token-based voting systems can lead to an accumulation of decision-making power among a few token holders, potentially misaligning with the broader public interest. Sybil attacks and flash loans are one of many risks which are ever-prevalent within DAOs.
Intellectual Property (IP) Risks
IP-NFTs pose risks of ownership centralisation, governance efficiencies and commercialisation challenges. Fragmented ownership complicates licensing and commercialisation, particularly within biotech and pharmaceuticals. Governance inefficiencies, including voting apathy have the potential to stall decision-making, leading to slower R&D and underutilised research. Without strong governance structures, tokenized intellectual property could become a barrier rather than a catalyst for innovation.
Ethics
The absence of traditional regulatory oversight throughout the funding and approval process could potentially pave the way for unethical research. DeSci DAOs could potentially fund controversial or dangerous research, such as bioengineering experiments, genetic modifications or AI-driven surveillance projects. Furthermore, the reduction in censorship may act as a catalyst for the spreading of misinformation, as decentralisation removes safeguards against pseudoscience.
Leading DeSci Projects
Bio Protocols
Bio Protocol is a decentralised biotech launchpad and incubator, facilitating the creation of BioDAOs. They serve as an index fund for BioDAOs, their BioDAOs are collaborative collectives that fund and support biotech initiatives. Bio Protocols is backed by Binance Lbs, underscoring its potential to revolutionise scientific research funding. The platform offers a 16-week hybrid accelerator program, providing mentorship, financial support and technical resources for biotech projects. Participants can be educated on the utilisation of Web3 tools, such as Intellectual Property Non-Fungible Tokens (IP-NFTs) and tokenomics, to aid in navigating the challenges of building biotech organisations and launching DAOs.
VitaDAO
VitaDAO is a DAO dedicated to longevity research, funding scientific projects through the sale of IP-NFTs. These NFTs represent ownership rights to intellectual property emerging from funded studies, allowing holders to convert them into IP tokens for collective governance over research initiatives.This model promotes decentralised collaboration while ensuring researchers maintain full ownership of their discoveries.
ResearchHub (Research Coin - RSC)
Decentralised science protocol co-founded by Brian Armstrong, aimed at improving the peer review process and the distribution of academic research. It incentivises researchers to post and review papers using its native token, ResearchCoin (RSC). Contributions are rewarded depending on community upvotes, promoting active collaboration and participation. ResearchHub seeks to streamline scientific communication and dissemination.
Expert Insights: A DeSci Leader’s View on the Sector’s Potential
Steos
Quote from Elsi of Steos Foundation on the state of the DeSci market:
“The main driver behind DeSci’s growth is the scientist’s strong need for transparent, efficient and convenient way to get financing, store and share research findings. Funding is especially important, as it’s the foundational factor that enables independent research by scientists worldwide.
Soon, we’ll see more projects that allow researchers to interact directly with investors and the public, bypassing many bureaucratic barriers. The most successful projects will not offer just tokens, but rather a full ecosystem of services, including secure storage, decentralized joint research and exchange of results. It’s crucial to remember that this field is still very young and we’re only at the very early stages of its hype
However, real success will come to those who’ll have strong scientific expertise (for example, platforms represented by scientists recognized in their fields) and with a focus on practical solutions”
Conclusion: The Future of DeSci - Opportunities and Challenges
Decentralized Science (DeSci) is gaining traction among academics, technology leaders, and blockchain innovators. However, its widespread adoption remains in the early stages, with proof-of-concept initiatives yet to transition into fully integrated solutions within scientific and industrial sectors. The sector's long-term trajectory will depend on advancements in technology, regulatory developments, and its ability to scale beyond niche applications.
From an investment standpoint, DeSci presents both promising opportunities and intrinsic risks. Early-stage projects with strong scientific utility and lower market capitalization may offer significant growth potential, particularly as blockchain-driven solutions address inefficiencies in biotechnology, medical research, and academic publishing. However, challenges such as regulatory uncertainty, speculative market behaviour, and slow institutional adoption pose considerable risks. Investors should employ strategic approaches such as diversification, ongoing market analysis and a balanced approach of scientific value and market forces to navigate this ever-changing sector efficiently.
Despite these hurdles, DeSci holds the potential to transform research funding, data-sharing, and scientific collaboration. Its long-term success will be dependent on the ability to scale from experimental projects to large-scale, real-world applications. As the sector matures, stakeholders who combine innovation with risk management will be best positioned to seize emerging opportunities.