The US Senate Armed Services Committee recently urged the Department of Defence (DOD) to evaluate the use of blockchain technology for national security applications. This proposal is an important initiative to improve supply chain management and other critical areas within the Department of Defence.
The Commission Report
Today, the US Senate Armed Services Committee released its report on the National Defence Authorisation Act (NDAA) for the fiscal year 2025. This report includes specific authorisations for various branches of the armed forces, including the Army, Navy, and Air Force, as well as defence-wide programmes. The committee recognised the potential of blockchain technology to improve US national defence supply chains and economic competitiveness. In particular, it highlights how blockchain can improve the cryptographic integrity of the defence supply chain, enhance data integrity, and reduce the risk of data manipulation or corruption by competitors.
Commission Objectives and Directives
The Senate Committee would like the Department of Defence to explore use cases for blockchain to achieve national security objectives and to create secure, transparent, accountable and verifiable supply chain data. To further this effort, the committee directed the Secretary of Defence, retired General Lloyd Austin, to provide a briefing by 1 April 2025.
Six key results requested in the briefing
The blockchain brief is to include six key outcomes, including:
- A plan for pilot programmes or research and development efforts to further the use of blockchain technology in national security applications.
- Supply chain management.
- Cybersecurity for critical infrastructure assets.
- The controllability of procurement.
Potential of blockchain in national security
The blockchain, a distributed ledger technology, is known for its ability to ensure data integrity through encryption and decentralisation. Each transaction is recorded in a block linked to previous ones, making it very difficult for anyone to manipulate the information undetected.
Economic impact and competitiveness
In addition to the obvious national security benefits, the adoption of blockchain could improve US economic competitiveness. A more secure and transparent supply chain can reduce operational costs and increase efficiency, while fostering the trust of international trading partners.
Bitcoin and cryptocurrencies. An evolving context
Although the Senate proposal mainly concerns the use of blockchain for security purposes, it is important to note that US politicians are increasingly supporting the adoption of cryptocurrencies. A recent 8 July update on Republican Party presidential candidate Donald Trump ‘s campaign website reported that the Republican National Committee approved a draft reform bill that includes protection for cryptocurrencies and Bitcoin mining.
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