So, let us consider the development of tokenization technology. In the middle of last year, tokenization technology appeared in the Gartner Hype Cycle at the Trough of Disillusionment or Deliverance of Illusionism. This is the stage where the technology is no longer regarded as perfect and revolutionary, but rather examined from a critical technology perspective. It is field-tested, and experts highlight its shortcomings as well as ways to address them. Society begins to dispose of illusions and look for realistic ways to use the technology in the next 5 to 10 years.

Let's also look at a report published by one of City's major financial institutions in March 2023. According to their forecasts, the tokenisation market will grow by more than 80 times, and by 2030 it will be around $6 trillion.

What factors have driven this prediction and what might be the future growth in the use of this technology? 

At the moment, the most promising areas for tokenization are the tokenization of physical and financial assets. Physical assets include, for example, real estate, art, and intellectual property. And financial assets are those that directly express financial value, for example, money, stocks, bonds, and funds.

The tokenization of physical assets is mainly aimed at monetising illiquid assets or sharing ownership. For example, this process can reduce the minimum amount of an investment in real estate or art objects by fractionally distributing the asset to a group of investors.

According to the City GPS study, financial assets are the most promising for tokenization. 

The application of distributed ledger technologies, including tokenization and smart contracts, to the global financial structure will enable a unified and transparent data infrastructure. This will significantly speed up the handling of classic financial instruments and help avoid bureaucratic processes. 

In the financial industry, there are many layers of intermediaries that work with the same data, but in their own isolated systems. This results in many unnecessary transactions, wasting unnecessary computational, financial, and time resources. Examples include cross-border payments made through a multi-tiered banking infrastructure. Or post-trade bond settlements, which 

go through a consistent technological flow of Central Securities Depositories and Counterparty Central Clearing Chambers. The purpose of such processes is to reduce the risk of settlement failure in traditional workflows.

With the introduction of smart contracts and DLT technologies, the financial asset infrastructure can be globally accessible, seamlessly operating, and intelligently optimized. 

There are certainly many opponents to such innovations. Indeed, it could be questioned if investors need to trade bonds twenty-four hours a day, whereas settlement failures are relatively rare. Private funds continue to use Excel or Power BI to record data and do not need the increased liquidity of assets. There are many arguments to be made that prove that the systems are functioning properly and do not need to be changed. But when you consider all the possibilities offered by distributed ledger and tokenization technologies and their maturity according to Gartner, you can conclude that now is the best time to start using them. In a few years time, they will be adopted globally and you have a unique opportunity to be among the first to create a special competitive advantage for your business. 

About debt, crisis and recession:

• The World Bank warns that the global economy could fall into recession in 2023.

• The U.S. and Japan are facing serious debt problems. The U.S. could face a financial crisis in the coming months once its debt reaches $31.4 trillion. The U.S. Treasury Department has begun using "extraordinary measures" to manage money in an attempt to delay a default on the debt until June.

• Tightening of monetary policy.

  What to fear and what to prepare for:

• Energy crisis (especially in Europe). Urgent revitalization measures in Europe. Abandonment of coal. Transition from fossil fuels to renewable (alternative) energy sources (very difficult transition given current infrastructure).

• Accelerated transition to green energy (alternative energy) We are on track for a temperature rise of 2.5° Celsius by the end of the century, a shift that will multiply the climate disasters we are already experiencing. Climate change is the greatest challenge of our time, with rising temperatures and ecosystem degradation threatening life on Earth as we know it.

• A call for a global response to the growing cyber storm. Cybersecurity was the main topic of discussion at the annual meeting. Experts predict that 2023 will be a year of cyberattacks and cybersecurity.

• A serious level of geopolitical division. The division between East and West. The separation of the world's two largest economies. A tectonic split that will create two different sets of trade rules, two dominant currencies, two Internet and two conflicting artificial intelligence strategies.

• The emergence of trade wars.

• Continuing the war between Russia and Ukraine (supporting Ukraine with weapons, resources and food supply).

• Artificial Intelligence (DALL-E / ChatGPT is a black box, so we don't understand how it works). AI can go so far as to negatively affect many areas. For example, replacing many jobs (increasing unemployment); AI-based weapons; new opportunities for cyberattacks.

  Trends and technologies for 2023 (what is especially important for 2023; where will there be a huge infusion of money; what is highlighted as #1 to explore, develop, and implement)

1. Central Bank Digital Currency (CBDC) development and implementation. Despite global financial instability, central bank digital currencies (CBDCs) are becoming a high priority for central banks. Whether in response to current market conditions, a growing belief in the potential of the technology, or a desire not to be left behind in this innovative exploration, there is a clear message from central banks that CBDCs are a top priority.

2. AI (technology adoption in many industries - healthcare, manufacturing, pharmaceuticals, mobility and verticality of human resources, security). AI spending is expected to exceed $500 billion by 2023, driving rapid advances in adaptive and generative AI. Adaptive AI can continuously retrain its models to learn and adapt based on new experiences without requiring its developers to retrain it, leading to faster and better results. Generative AI uses neural network models to create something new.

3. Metaverse. Metaverse is the next quantum leap. It will change the way we communicate, play, learn, shop and work. According to industry experts, its "disruptive" or "transformative" impact is expected to grow this industry to $5 trillion by 2030. For example, Metaverse can be used to recruit top talent - from the recruitment process (meeting with virtual job fairs) to the first tour of the virtual office. Create a hybrid work environment. In an Adecco Group 2022 survey, more than 50% of Generation Z and Millennials said they would work in the metaverse. Introducing 3D avatars, augmented reality, gamification of space. Changing the approach to learning through AR (augmented reality) and VR. (Metaverse is an opportunity to build a "training ground" for real life, allowing practitioners with minimal risk or cost). Training and selecting specialists such as structural architects, ecosystem developers, and metaverse designers or operators through the metaverse (allowing them to perform tasks and tests there). Solving the talent shortage by moving some tasks from the real world to the digital world. For example, in the future, prototypes may not need to be built physically, and you can already create digital twins, such as a virtual train to test the ergonomics of its design, the position of its seats, or to perform maintenance tasks remotely, etc. The metaverse can break down barriers and bring people together regardless of race, gender, ethnicity, age, language, or culture. "Metaverse is an immersive, interoperable and synchronous digital world that is projected to be an $800 billion market by 2024." Metaverse will rely on the widespread adoption of Extended Reality (XR), a combination of augmented, virtual and mixed reality, and the viability of digital assets, wallets and identities to conduct business and create social spaces. However, challenges remain, including ensuring equitable access to the necessary tools, as virtual reality headsets, haptic gloves, and other advanced technologies are expensive. There are also questions about ethics, privacy, and digital addiction. All of these tensions are increasingly relevant as the scale and value of the metaverse continues to grow.

4. Green technology (renewable energy) (2023 will be a turning point). It will also make it possible to save $12 trillion worldwide by 2050.

5. Cybertechnologies.

6. Quantum computing technologies. Quantum computing, which uses subatomic particles to create new ways of processing and storing information, promises to be the future of computing. Although quantum technologies are still in their infancy, huge investments by government and industry mean that we are likely to see rapid advances in hardware and software over the next year, and quantum products will begin to reach the market. Currently, 17 countries have invested in a national research and development program for quantum technologies. The impact of quantum technologies will be far-reaching in areas ranging from cybersecurity to drug development.

7. Gene editing is going mainstream. Until recently, CRISPR, the gene-editing technology that won its developers the Nobel Prize in 2020, was used primarily as a research tool to understand the importance of specific genes and to discover new drugs. Since the first person received gene-editing therapy three years ago, the technology has been used to treat congenital blindness, heart disease, and sickle cell disease, among other conditions. And while single-gene mutations are the main application scenarios, early studies show that conditions such as Alzheimer's and chronic diseases can also be treated with CRISPR.

   Cloud technology, artificial intelligence and the metaverse are the defining technology trends that will shape our future. Leading companies are turning to these technologies to increase resiliency, accelerate growth, streamline operations, and reinvent their ability to innovate, setting the stage for revenue growth during and beyond economic uncertainty.

   At the same time, quantum technologies will exponentially accelerate the fourth industrial revolution. For those who lead the way, the impact will be far-reaching and significant, stimulating countries' industrial bases, creating jobs, and providing economic and national security benefits. This compounding effect will result from revolutionary advances in three key areas of quantum technology: cybersecurity, quantum modeling and optimization, and quantum probing. The day is coming when quantum computers will break our current technology. Bioengineering is the next "general purpose" technology. Like the steam engine and the Internet, bioengineering can affect the entire economy and change society through political, economic, and social structures. Given the sobering and uncertain outlook, it's best to embrace uncertainty.

DeSci is a decentralized, democratic, and very effective tool for funding scientific work. It uses tools such as DAO, quadratic and retroactive funding, as well as incentives through the tokenization of certain structures.

DeSci creates an ecosystem that provides scientists with the ability to share their research openly and receive certain resources in return, such as rewards and support. The DeSci ecosystem also makes the research process transparent, accessible, and more resistant to censorship and control by central governments and corporations.

There are some problems in the scientific world nowadays: 

1. Most good scientists like to do science, but they do not tend to spend most of their time pitching their projects to grantmakers.

2. A lot of research projects are not commercially attractive, or their timelines are not agreed with the financial model. Thus, such research is not funded and not properly supported.

3. There are many specialists (researchers, inventors) who work in private or for closed organizations, and institutes. They face difficulties in finding supporters or investments. 

4. The process of publishing academic papers in various journals takes a long time (from submission to publication) and can extend to up to half of a year. The duration of the review is related to a number of human factors, as well as to the priority given to publishing according to a certain topic. Moreover, such work is not paid. Moreover, authors have to pay for the publication themselves. In this case, only the publishers get the commercial benefit.

5. Academic censorship restricts the freedom of research and the expression of scientific ideas. It can be manifested as a ban on the dissemination of certain scientific papers and discoveries, as well as indirect pressure on scientists to limit their work in certain research areas. It can also take the form of a ban on certain viewpoints by public authorities and corporations.

6. And also many other issues such as bureaucracy, long decision-making processes, limited transparency, scarcity, and inappropriate allocation of resources within individual organizations, etc. It leads to many problems in terms of funding. Moreover, there are currently few traditional funding mechanisms for science in general.

7. Issues related to intellectual property (IP). From use within universities only, or not use at all to difficulties in valuation.

Where “DeSci” was mentioned first?

DeSci was first discussed as part of the organized community "DeSci London" at the Francis Crick Institute.

After that, the topic continued to be discussed on ethereum.org!

What technologies are already available today?  And how might this affect science development?

Funding mechanisms:

DAO (Decentralised Autonomous Organisation) is an organization that uses blockchain technology to manage its activities without centralized control. DAO is governed by the voting of its members, who make decisions collectively using digital assets and smart contracts. DAO can be used to manage various projects, such as blockchain protocols, crowdfunding campaigns, collective investment, and other projects where decentralized management is required.

Public goods quadratic funding is a funding mechanism that enables people to pay for as many votes as they wish. This uses a series of 'vote credits' quadratic in the votes they buy.

Retroactive public goods funding means providing funding for a period of time that has already passed before the funding was provided. For example, if an organization has received a grant for retroactive funding, this means that it would have received funding for a period of time that has already passed before the grant was awarded. This can be useful for projects that have already been implemented but have not been paid for, or to offset costs that were incurred before the funding was awarded.

Tokenized Incentive Structures are systems that use tokens (blockchain-based digital assets) to encourage participants to complete specific tasks. Tokens can be used to reward participants within the project ecosystem, for example, by rewarding them for publishing scientific papers or solving a communities' problem.

Information solutions and incentives:

New mechanisms for publishing scientific papers and opinions can be developed based on Web3 as well as transparency and universal access principles.

Ability to earn rewards in tokens and accumulate a digital reputation for peer-reviewed papers.

New principles for dealing with intellectual property (IP) based on NFTs (non-interchangeable tokens). The author will be able to create their own NFTs (IP, scientific data, articles) and distribute them according to transparent conditions. Another big advantage of NFT is the ability to pass the income from future transactions to the original authors. It enables rewarding researchers and organizations (like DAO).

IP-NFT is another promising solution, used as a key to decentralized data storage of conducted research experiments as well as connecting tools to NFT and DeFi funding (from splitting to credit pools and valuation).

Available projects today:

Today, one of DeSci's most developed companies is Molecule Ecosystem. Their headquarters office is located in Switzerland.

The Molecule ecosystem is a decentralized biotech protocol for transferring intellectual property to web3 and launching biotech DAOs. The ecosystem includes such projects as VitaDAO; PsyDAO; Research Marketplace; BioDAOs; IP-NFTS; ValleyDAO; AthenaDAO; HairDAO; CryoDAO.

Molecule develops collaborative ecosystems where stakeholders in drug development can work together to accelerate the delivery of new therapies to patients. The company connects leading researchers to funding, turning intellectual property and its development into a liquid and easily investable asset. 

PsyDAO forms a decentralized organization to fund research at the interface of psychedelics and mental health.

Bioxyz connects the next generation of science with capital, talent, and resources to create DAO and DeSci biotech projects of the future.

VitaDAO funds and promotes longevity science that can improve human life. (According to their website, they have already funded over 12 projects for $3 million. Also, you can read about the funded projects on their website.)

If you are a scientist, researcher or have your own laboratory, you can choose the DAO to apply and receive funding of up to $200,000 for 1-3 years, according to your field of science.

If you are a philanthropist, you can participate in funding such projects through DAO. (But do not expect to make any profit, as the community policy is to make a profit and distribute that profit to fund other projects).

It is also important to highlight that when the company funds a certain project, it requires to re-issue copyright (IP) to the DAO. The DAO finances projects and acquires intellectual property through sponsored research agreements that are concluded with the commercialization office of the host university.

Although I haven't done a detailed FA (just looked through Coinmarketcap, read their websites, and studied tokenomics), I am not sure about their actual functioning as a DAO. Current projects are not decentralized. 

More than 70% of the tokens are managed by one party; all funding and management decisions are in fact made only by the core project team. In my opinion, this is a quite classic company with a centralized decision-making system. But despite this, they are worth observing and analyzing. While I was studying their ecosystem I was inspired and got a lot of new ideas. Thank you for being there, you are doing an amazing job. 

DeSci Labs 

The second interesting project is DeSci Labs. I think this is one of the Ethereum Labs divisions. 

DeSci Labs establish tools for open science development. The platform publishes and integrates their research, software codes, various data sets, videos, and more into dynamic, interoperable research objects. You too can contribute to reproducible, open, and equitable science.

Also important to highlight the DeSci Foundation. The DeSci Foundation is an independent organization of leading scientists and innovators. They are committed to exploring the potential of applying new technologies, incentives, processes, and funding models to the scientific ecosystem. The DeSci Foundation aims to make science more robust, transparent, independent, and open. They also aim to change the culture in the scientific ecosystem.

These are 6 additional projects that I found interesting and meaningful in the nascent direction of DeSci.

DeSciWorld is a universal platform that helps users view, interact and understand all that is happening in the world of decentralised science.

UltraRare Bio is a web3 community at the intersection of science and art. A podcast platform.

Decentralised Science (DeSci) London explores decentralised science. It is a growing web3 movement in London. They hold various conferences, workshops, and networking events. The main aim is to create a hub where DeSci builders can exchange ideas, get information from researchers and get funding from investors. To be a catalyst for the whole DeSci community.

Gitcoin is a set of tools to enhance community-led funding opportunities and robust digital experiences.

Hypercerts is a new funding and incentive protocol. Each hypersert is a public claim to discrete work and the impact that results from that work. Projects can create hyperserts and distribute them to participants. Sponsors can own the hyperserts and the rights that come with them. Evaluators can create value for projects and sponsors by rating the quality of the hyperserts and offering ratings. Hyperserts create interoperability by acting as a single, open, shared, decentralised database for impact applications and funding mechanisms.

Ocean Shipyard is an early-stage grant program created to fund the next generation of Web3 dApps built on the Ocean Protocol. It is designed for entrepreneurs who want to build Web3 open-source solutions on the ocean, provide valuable data, innovate, and create value for the ocean ecosystem.

To write this article, I have reviewed more than 100 DeSci projects (many of them are at MVP or even the idea stage). This field certainly deserves attention from investors, crypto-enthusiasts, and representatives of the scientific world.