This month is a little different, but hopefully no less interesting, as we reflect on how a home reno project highlights some possibilities for the future of contracts and trust.
1. How did this happen?
The research was done. An award winning designer, outstanding quality, budgets planned, 'aesthetic' in spades! Deposits, quotes, production payments, equipment - all agreed and paid... ready for installation!
Until it wasn't quite finished.... You know "Covid, Ukraine and all that"... Just a little delay.... Ready soon...
And then the questions got asked.... and then some more.... and it eventually came out.
We, and quite a few others, had been scammed.
That's it.... money gone. Lots of crap to learn about and tidy up.
It was to be a dream kitchen.... a place where we'd hang, make great food and even more memories - all in a space where you can't help but feel grateful for it.
We're lucky. It hopefully will become just a sh!tty and inconvenient memory in future.... but there's others who are way worse off. And that sucks.
This month, we've been fairly distracted as you might appreciate.... and so a little light on in relevant research, unless we count consumer law, builders acts, liquidators and all that pa-la-va!!
BUT we also committed to this newsletter being about reflection and learning, remember?
So the following is an attempt to: a) make this sh!tstorm a learning one; and 2) offer some real world examples of how reimagining our organising systems with new technology is playing out and the implications for health care. As usual we finish on The 4th Point where subscribers have some more reflections on how this applies and what action you can take.
2. A recipe for the future
Let's be clear - bad actors will always be around - and the basics of how we transact are fairly unchanged over centuries. In essence there's some form of demand-supply dynamic, an agreed denomination of value, and a means of agreement on the steps of a transaction.
It relies largely on trust and humans who follow those agreed upon steps.... where needed there are ways to increase trust, and if something goes wrong, there are corrective mechanisms and systems for justice... that in time inform improvements...
Our kitchen scenario essentially relies on trusting humans to make information and money flow between different networks..... For example the suppliers (designer, manufacturer, transport etc) and the installers (builders, sub contractors etc)... it's wholly dependent on the conduct of multiple transactions by someone (quotes, invoices, decisions, payments, communication and so on).
In the future technology, such as blockchain and smart contracts, will mitigate these by creating a more secure, automated, and transparent method for transacting, minimising human dependence and some people's propensity for fraud. Here's a 4min video with some examples.
The future kitchen scenario might therefore go something like this:
We want a nice kitchen and can prove we have funds to pay (for example: a digital token of certain value or a key to a digital wallet or escrow account that has adequate and transparent funds in balance)
The kitchen contractor can attest to their ability to deliver great kitchens through things like their smart contract (where consumers could use AI tools to review it) and in the volume of previous successful contract executions. All of which can be verified via the blockchain.
The smart contract then automates the data requirements and processes for transaction flows between different participants. As these are generally done within a network, and are repeatable, they can be coded and the sources of 'trust' connected across the participants (who have proven their identity or credentials - as we outlined in last month's brief) .
All participants in the contract have access keys and digital assets that govern their roles and requirements. As the data flows and agreed milestones are achieved (based on the code) the money is exchanged.
There's plenty of literature on this from lawyers, builders, and even regulators like the RBA, who have trialed the concepts in construction.
3. Applying this to health care
The video above provided a small anecdote in dental care. The ability for data from a connected device (a toothbrush) to flow into and derive incentives from within insurance products is just one insight into the possibilities.
Take another example from our personal experience - weight loss.
Why can someone have a pretty seamless, digital experience for online weight loss consultation and access through the likes of Pilot by Eucalyptus, and not be able to integrate other elements that unlock additional incentives?
In future, imagine consumers engaging with an AI tool that supports them to identify their needs - maybe even by integrating all that 'health' data we have in various locations. It then helps the user sign up to a smart contract or (heaven forbid) even create their own through an insurer or other payer like Government.
A smart contract could then deliver incentives based on outcomes like weight loss or health program participation with data collected from smart devices like scales, or provider engagement.... Now isn't that pretty much consumer-centric and value based care?
Practically, this really isn't too far away. You can currently shop around for insurance products, changing out of pocket amounts and premiums based on various choices. New products like ExtrasJar are also entering the market and expand on this integration of incentives and personalisation in consumers' financing of health care.
This potential for personalisation, information and value exchange is one key area we see with scope for imagination. The technology is now becoming available to take some serious steps in addressing these challenges. We're working on building out these use cases more - so if you have ideas or challenges to put forward, lets chat!
We contend that it is through the building of new systems that we can start to overcome inefficient processes and vested interests that have been baked into the evolution of health care over the last century or so.
And maybe in the process of building these new ways we can also deal with those few, but impactful, cockroaches that want to do the wrong thing.
The 4th Point
Each issue we finish with 'The 4th Point'.... this is meant to be a section with some 'so what, what next' thoughts, together with links, research and take home points.
But honestly, this month we just didn't have it in us..... so if you feel the need, take some time to be kind to yourself or someone else, and seek out the good and great all around you.
In keeping with some of our inspiration, here's a fitting quote from Euripedes, who despite his colourful history, noted:
In goodness there is all kinds of wisdom".
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