Revolutionizing Nutraceuticals with Derek Lurth Enhancing Transparency and Trust through Blockchain

Episode Overview

Episode Topic

In this episode of Nutra Preneur, host Bethany Jolley welcomes Derek Lurth, co-founder of HealthLoq, to discuss the innovative ways his company is enhancing transparency and traceability in the nutraceutical industry. HealthLoq is revolutionizing the health and nutrition sectors by utilizing blockchain and zero-knowledge proof (ZKP) technologies to provide tamper-proof document verification and protection. This episode dives deep into how these technologies ensure the authenticity of ingredients and products, building trust between suppliers, brand owners, and consumers. Discover how HealthLoq platform supports sustainable practices and combats counterfeit products, ensuring high-quality standards in the industry.

Lessons You’ll Learn:

Listeners will gain insights into the critical role of blockchain and ZKP technologies in enhancing document security and authenticity within the nutraceutical supply chain. Derek explains how HealthLoq’s platform provides an immutable single source of truth, ensuring transparency and trustworthiness of product origins and compositions. Learn how these technologies streamline the document verification process, reduce the risk of counterfeit products, and support sustainability through traceability and recall management. Derek also shares how HealthLoq facilitates direct connections between suppliers and consumers, empowering consumers to control their data and fostering stronger relationships within the industry.

About Our Guest

Derek Lurth, co-founder of HealthLoq, is at the forefront of leveraging blockchain and ZKP technologies to revolutionize the nutraceutical industry. With a background in technology and a passion for enhancing transparency and trust in health products, Derek brings valuable insights into the importance of secure and authentic documentation in the supply chain. His expertise in creating tamper-proof audit trails and facilitating direct connections between suppliers and consumers positions HealthLoq as a leader in the industry. Derek’s vision for the future of HealthLoq is to become a premier platform for trustworthy information and responsible companies in the global nutraceutical market.

Topics Covered

The episode covers a range of topics including the foundational technologies behind HealthLoq, such as blockchain and zero-knowledge proof (ZKP). Derek Lurth explains how these technologies work together to create an immutable, tamper-proof system for verifying the authenticity of documents and products. The discussion also highlights the importance of transparency and trust in the nutraceutical supply chain, and how Healthloq’s platform supports these values. Additional topics include combating counterfeit products, enhancing supplier-consumer relationships, and supporting sustainability through efficient recall management and traceability. The episode concludes with Derek’s vision for the future of HealthLoq and its impact on the global nutraceutical market.

Our Guest: Derek Lurth, the Visionary Behind Product Transparency & Data Protection Revolution

Episode Transcript

Bethany Jolley: Okay. Welcome back to Neutral Preneur, where we explore cutting-edge innovations in the nutraceutical industry. I’m your host, Bethany. Today we’re excited to have Derek Lurth, co-founder of HealthLoq. Joining us. HealthLoq is revolutionizing the health and nutrition sectors by enhancing transparency and traceability for ingredient suppliers. Derek, thank you for being here today to dive into how your platform is transforming the industry.

Derek Lurth: Glad to be here. Thanks for having me, Bethany.

Bethany Jolley: So, Derek, I think first, it would be great if you could explain how Healthbox document verification and protection features work and why they are critical for ingredient suppliers.

Derek Lurth: Absolutely. So our document protection and verification service is based on the foundation of blockchain and Zero Knowledge Proof or ZKP technologies. We don’t have time, obviously, to dive too deeply into them, but I’ll give you a high-level overview of how they work. So to many people, probably Bitcoin or Ethereum comes to mind when they hear the word blockchain. Uh, blockchain is actually it’s a collection of technologies that allow us to create shared digital platforms or ecosystems that enable us to do some really great things from a product, product provenance, uh, verification and authentication standpoint that we just haven’t been able to do in the past. These component technologies previously existed, but they’ve been put together in a way that has enabled blockchain to function essentially as a new technology. So the the primary components of blockchain are a distributed or a network record, smart contract code, validation mechanisms, cryptography, and digital identity. So people might ask, so why are blockchain-based platforms more secure than existing applications and document exchange. So the foundation to the increased security and reliability of the blockchain data is that all of the participants are operating in the same network or ecosystem-level application with traditional record keeping software. Every time data crosses organizational boundaries, there is an inherent lack of visibility and reconciliation processes, or third parties need to get involved in order for trust to exist. Blockchain participants, however, can see the cryptographic proof that transactions were properly authorized and by Who, and that the data hasn’t been altered. So a story I like to tell to help illustrate this principle on how blockchains work involves kids playing a game of soccer in the street.

Derek Lurth : Let’s say there’s two teams and the first team scores a goal. The kids saw the goal happen, and they all sound off that the score is 1 to 0. Now the second team scores a goal and the process is repeated and everyone agrees the score is 1 to 1. So if a kid on one of the teams tried to assert that the score was actually 2 to 1, that kid would be overruled because that score is going against the group’s validated consensus mechanism. So essentially, blockchains work in much the same way. Blockchains are indivisible, and they enable visibility, track and trace functionality and product provenance and genealogy information. And they establish a single source of truth for multiple parties to refer to. So a metaphor I like to use to show how blockchain establishes a single source of truth involves a small town, let’s say in the middle of that town there’s a book and there’s a town square, and there’s a book in that town square. And all the town’s business transactions are recorded in that book. People can write new transactions into the book, and they can look at past entries, but they can’t rip the pages out and they can’t change or erase any of the past entries. This is much the same way of how a tamper proof, immutable blockchain ledger app can act as a single source of truth for multiple parties. So the other foundational. Foundational technology to HealthLoq is Zero Knowledge Proof or ZKP technology. It could be considered a companion technology to blockchain or as a subset of the cryptography element of blockchain.

Derek Lurth : And it’s basically a clever way to verify the authenticity of a document without needing to know what exactly is in the document. Unique identifiers are applied to digital documents, whether it be certificates, authorization letters, or any other type of electronic file, and verification tools are used to attest to its authenticity. This is a really big deal because we finally have a quick and foolproof way to detect any altered or unauthentic documents, and it’s simple to put in place. So the usefulness of ZKP can be shown through the example of someone buying alcohol from a store. In order to authorize the transaction, the store clerk needs to check the ID of the prospective buyer. The clerk now has access to a lot of personal information home address, height, weight, etc. that isn’t necessary or relevant for this transaction. The clerk doesn’t even really need to know the person’s birthday. All he really needs to know is whether the person is 21 years or older. Yes or no. ZKP can really can make this happen. It can give a thumbs up or thumbs thumbs down without exposing any private or unnecessary information. So ZKP works by putting each document through an irreversible one way encryption algorithm within the IT security perimeter of the document publisher. The output of this encryption algorithm is a unique code or digital fingerprint that represents the original document. This digital fingerprint is called a hash, and it looks like a jumbled mix of random numbers and letters. And note that although each hash is unique to a single document, you can’t reverse engineer it back into the original document.

Derek Lurth : This hash is then sent outside of the IT perimeter of the document publisher to an immutable, tamper proof blockchain ledger. When documents are presented to a third party for verification, the third party runs the document in question through the same hashing algorithm and compares its digital fingerprint to the original digital fingerprint stored on the blockchain. If there is the slightest change or the tiniest difference, it will be detected due to the digital fingerprints not matching. So what this means is that ZKP tech combined with blockchain tech, enables us to track the digital chain of custody of authorizations. For example, a certificate of analysis can be verified as authentic, and the organization that issued the Certificate of Analysis can be verified as having the appropriate certification or accreditation as authenticated directly by the certifying organization. This can be done automatically in the background of normal processes, in bulk, and with a very high level of accuracy and assurance. So HealthLoq document protection and verification features which leverage blockchain and ZKP are critical to the nutraceuticals industry because they take away a major tool that the shady ones in the industry use, which is to make up or monkey with documentation. With the rapid development of AI, it’s easier than ever to make fake or to alter documents. Our technology protects the responsible players in the industry by raising a barrier against illegitimate competition, and most importantly, it helps advance public health and ensure consumers have access to safe, high quality products.

Bethany Jolley: Yes, absolutely. And you know, I know you have an emphasis on product origin. So how does HealthLoq ensure a tamper proof audit trail from origin to consumer.

Derek Lurth : Great question. So like I said, we lean heavily on blockchain and ZKP to create this tamper proof audit trail from origin to consumer. So blockchain helps us build trust in the supply chain first through its ability to serve as as that immutable single source of truth. As I discussed before, a blockchain record cannot be deleted or manipulated, it can only be appended, and a time stamped record is made of all updates and by whom they were made. This audit trail can be viewed by other permissioned parties, so even if the evidence provided by a brand or manufacturer that supported the safety, sourcing or sustainability of a particular batch of a product was only self-reported by the brand. The fact that there are documents in the public domain on an immutable blockchain that are standing by the claims of the company is making for a specific batch that should provide a powerful incentive for that company to be truthful about the evidence it is providing. There’s also this is also a very powerful signal to the public and to consumers that a company is standing by their commitment to quality, safety or sustainability for every batch of product when they contribute to a blockchain record. So blockchain is also the perfect technology to help build trust with consumers because of its ability to operate on a network level application and establish the digital identity of its participants. So these characteristics allow it to essentially enact the law of witnesses in the digital world for thousands of years.

Derek Lurth : Judicial systems around the world have operated under the premise that a testimony is more credible and trustworthy. If there is a witness who backs up or supports the facts or versions of events as told by the first party. If there is more than one witness that supports and agrees with the first party, then truth becomes even more clear and established the court of public opinion and trust of the consumer works the same way. Let’s just say you’re hanging a picture on the wall. If you use one nail, then you can put the picture on the wall, but it will probably be at least a little crooked or skewed to one side. Furthermore, it will not be secured to the wall very sturdily, and a disturbance may cause it to fall off the wall. But when you use two nails, then you get an even more secure picture on the wall and you trust that it will stay hanging on the wall will increase. And so it is with a blockchain enabled audit trail. When a brand provides evidence supporting its claims of quality, sourcing or sustainability to the blockchain, that’s a good thing. And at least there is some basis of trust. But when the brands. Contract manufacturer, analytical testing, lab ingredient supplier, farmer, third party certifier or other supply chain participant contributes directly to the blockchain on behalf of the brand, then the brand becomes much more credible and trustworthy in the eyes of the consumer and other stakeholders.

Bethany Jolley: Yeah, I can see where trust is is so important, and they want to know that the products they’re purchasing are reputable and authentic. And in terms of combating counterfeit products, what measures does HealthLoq implement to maintain the integrity of health products that are out in the market?

Derek Lurth : First and foremost, our technology makes it possible to trust that a given document pertaining to the origin and composition of a product is in fact the unaltered original from the claimed source. We must be able to rely upon the documentation that is passed between companies and our industry supply chain. That is a fundamental requirement. If we cannot, then everything we do is on shaky ground. Beyond that, our technology also verifies that the organization that issued that document or certificate is authorized or qualified to do so by validating that it has the appropriate certification or accreditation as authenticated directly by the certifying organization. For example, a nutraceutical product won’t be able to just say it has a bunch of certifications that it actually, and it actually doesn’t have them.

Bethany Jolley : Yes.

Bethany Jolley: Yeah, I’ve seen that happen quite frequently actually. It’s it’s a bit concerning. And I think another great feature of HealthLoq is that it facilitates direct connections between suppliers and brand owners and consumers. So how does this feature enhance the relationship and trust between these groups?

Derek Lurth : So yeah, one of the features of our platform is that consumers control their own data. They can choose what aspects of their personal profile are visible to suppliers and to which suppliers they want it visible to. They also have the ability to revoke that permission at any time. Also, suppliers have the ability to compensate consumers for sharing their information, either through product discounts or or monetary compensation. When consumers have the ability to directly control how and with whom their data is being shared and are compensated for it, Their relationship and trust with suppliers is strengthened. So additionally, when suppliers have detailed data attributes from consumers who explicitly shared their data with them, they have a higher degree of trust that their future decisions based are based on accurate and reliable data.

Bethany Jolley : Yes, absolutely.

Bethany Jolley: And could you share.

Bethany Jolley : With us.

Bethany Jolley: How receiving feedback specific to individual batches really helps suppliers maintain high quality?

Derek Lurth : Yeah, as you know, the raw materials used in supplements, you know, they come from natural sources such as plants. So and obviously plants can have can vary very significantly in their composition due to factors like growing conditions, harvest time and geographic location. So this natural variability can lead to different to sometimes significant differences in the final product. So by tying the health outcome or effect of a product on consumers to a specific individual batch, which then can be traced back to a specific source, the suppliers can more easily hone in on what is working and what isn’t working in its vendor, you know, quality assurance and selection processes.

Bethany Jolley: Yeah. That’s great. I’m sure that’s very beneficial for suppliers to see that feedback and very helpful for continuous improvement for sure. And how does Healthlake support suppliers and managing those recalls? No one wants to talk about it, but recalls do happen.

Bethany Jolley : So how does.

Bethany Jolley: Healthlake provide support during recalls and what benefits does this bring to the circular economy?

Derek Lurth : Yeah. Good question. So the HealthLoq platform. So in addition to being a tool to trace trustworthy information, upstream in the supply chain can also be used by participants to create blockchain records of downstream participants in the supply chain for a specific batches or lots of product. Thus, if a problem surfaces, unfortunately with a particular supplier and and a recall is necessary, it will be much easier to determine the locations of where the affected batches are and thereby decreasing the potential scope of the product recall. So likewise, by knowing where products end up, companies can help the circular economy by creating closed loop systems where materials are continuously reused, reducing the need for new resources and reducing waste by ensuring that product or packaging uh, containers are, are, uh, are returned for proper disposal or recycling rather than ending up in landfills. So it also helps enhance transparency and accountability by allowing consumers to be aware of the environmental impact of their purchases and participate in recycling programs. So and also also by knowing where their products go, companies can demonstrate their commitment to sustainability by showing how they manage the entire life cycle of their products.

Bethany Jolley : Yes, that’s.

Bethany Jolley: Fantastic, and it’s great that you’re able to to work with them on recalls, because I know traceability can be a huge challenge sometimes, and it can be difficult to determine where all your product was distributed. So it’s great that you can help with that And with blockchain technology at its core. How does HealthLoq stand out in terms of security and transparency compared to traditional systems?

Derek Lurth : Well, in terms of using HealthLoq as a tool for manufacturers and retailers in their product or ingredient qualification process, HealthLoq can act as an authoritative decentralized database, but with the massive advantage of preserving privacy of content and not exposing any sensitive or proprietary data. There is no aggregation of data in a central IT system through the exploitation of documents, but rather digital fingerprints are used for authentications and authorizations so it can be done. And its main difference is it can be used as a continuous scan of documents, uh, automated as a background service. It’s not non-disruptive to existing workflows, and it’s super easy and cost effective to implement.

Bethany Jolley: Yeah. And looking ahead, what are some of the new features or tools that HealthLoq is planning to introduce to.

Bethany Jolley : Further.

Bethany Jolley: Support ingredient suppliers?

Derek Lurth : So we’re currently working on enhancing our document authentication and verification functionality with an AI capability of automatically assessing the content of documents received in the product and supplier onboarding process. So not only will it be able to confirm that a document is the unaltered original as issued from an organization that is qualified to do so, but it will be able to do the bulk of the heavy lifting for you in analyzing the microbiology adulterants heavy metals and other contaminants testing, as well as doing the label claim verification by comparing testing results against the labels. So this will drastically reduce the cost and increase the efficiency of the onboarding process for retailers and large manufacturers.

Bethany Jolley : Yes, absolutely.

Bethany Jolley: Because I know that’s typically a lengthy process with a lot of reviewing that takes place. So being able to increase the efficiency would be huge. And lastly, what vision do you have for the future of HealthLoq and its impact on the global nutraceutical market?

Derek Lurth : Yeah, thank you for that question. I, I envision HealthLoq as one of the premier technology platforms in the world that enables suppliers and consumers to trust the information they receive from upstream in the supply chain. Also, as one of the go to places for consumers to find trustworthy and responsible companies who embrace transparency and aren’t afraid of it. So we’re already making great progress towards that vision, as our platform is a required part of the new Dietary Supplement Product Integrity program that will soon be formally announced in the very near future, in the very near future by the global Retailer and Manufacturer Alliance, which has as its members some of the largest retailers and manufacturers in the world. So we are super excited for the for the future and for the opportunities it will bring and for really the opportunity to make a meaningful contribution to making sure consumers have access to safe and high quality products.

Bethany Jolley: Yes, it sounds like there’s a lot of exciting things ahead at HealthLoq Well, thank you, Derek, once again for sharing such insightful information about HealthLoq’s pivotal role in enhancing ingredient transparency and consumer trust for our listeners. If you wish to learn more about HealthLoq or explore their services, we’ve provided links in the episode description. Remember to subscribe to our podcast for more enlightening discussions on the latest and nutraceutical innovations. Join us next time on Nutra Preneur for more exciting insights. Stay informed and inspired.