The Sei Foundation, governing body of blockchain developer Sei Network, announced Thursday its bid to acquire DNA testing company 23andMe following the latter's bankruptcy filing last week. The proposed acquisition aims to give users control over their genetic data through blockchain technology.
The move comes amid growing concerns about the fate of sensitive genetic information from over 15 million 23andMe customers worldwide. The Sei Foundation frames the acquisition as a matter of "national security," promising to implement encrypted, confidential transfers that would allow individuals to manage how their data is accessed and monetized.
"Traditionally, health data is controlled by a small set of centralized actors. We want to put control back into the hands of those it belongs to," said Eleanor Davies, Head of Decentralized Science at the Sei Foundation.
The foundation plans to create a secure platform using both public and private keys to handle genomic datasets while maintaining user privacy. However, technical experts raise questions about the feasibility of storing massive genetic data on blockchain systems.
"The size of the blockchain can't handle the volume of human DNA," notes Professor Ahmed Banafa of San Jose State University. He suggests that encrypting DNA data and storing only encryption keys on the blockchain could be a potential workaround.
Legal and regulatory challenges also loom large. The acquisition would need to navigate various privacy laws, including the California Consumer Privacy Act and the Genetic Information Protection Act. Several state attorneys general have already issued consumer alerts regarding 23andMe's financial situation.
Founded in 2006, 23andMe has struggled with declining demand for DNA testing and difficulties generating repeat customers. The company's financial troubles have sparked debates about data privacy and security in the genetic testing industry.
Since announcing the potential acquisition on March 27, Sei's token value has decreased by approximately 18%, dropping from $0.21 to $0.17.
As the bid moves forward, questions remain about how the Sei Foundation will address technical limitations, regulatory requirements, and security concerns while delivering on its promise of user data sovereignty.