U.S. Department of Defense explores blockchain technology
The U.S. Senate Armed Services Committee proposed exploring the role of blockchain technology in national security and defense applications in the draft National Defense Authorization Act (NDAA) for Fiscal Year 2025. The draft was submitted to the Senate for consideration on July 9, stating: "The committee recognizes the potential for blockchain technology to have broader national security uses in the defense industry."
Blockchain technology was first mentioned in the FY 2018 NDAA, signaling the technology’s initial recognition in defense legislation. At that time, the U.S. House of Representatives added two blockchain-related amendments to the annual defense spending bill, requiring the Department of Defense to explore the potential of blockchain technology in offensive and defensive cyber capabilities and report its results within 180 days. The Department of Defense subsequently submitted a report assessing the application of blockchain in cybersecurity, its use in U.S. government and critical infrastructure networks, and its cyberattack vulnerabilities.
Source: Army.mii Mark T. Simerly, Director of the U.S. Department of Defense Logistics Agency
The potential impact of blockchain technology on national defense
In its latest NDAA report, the Senate Armed Services Committee continues to explore the potential of blockchain technology for national security and defense applications. The report directs the Secretary of Defense to investigate the use of blockchain in supply chain management and highlights its potential to improve data integrity and reduce the risk of adversary data manipulation. These instructions include:
Evaluate the pros and cons of implementing blockchain in supply chain management.
Analyze the current status of blockchain within the Department of Defense and the defense industrial base.
Develop pilot projects or research plans to explore the use of blockchain in national security applications, such as supply chain management and cybersecurity.
Analyze the dynamics of foreign countries (especially China and Russia) in blockchain research and development activities.
Propose organizational recommendations to promote blockchain development, including the feasibility of establishing a coordinating office or center of excellence.
Propose legislative or regulatory recommendations to enhance supply chain transparency and auditability through blockchain technology.
These directives underscore the importance of blockchain in protecting defense supply chain data integrity and increasing data transparency and auditability. In addition, the Department of Defense has begun to explore blockchain applications and signed a contract with blockchain startup Constellation in 2024 to use blockchain technology to improve the network security of back-end systems and protect data transmission of defense transportation systems.
The military also engages in blockchain! The U.S. Navy wants to develop the "PARANOID chain" and is seeking cooperation from private companies
The application prospects of blockchain and Bitcoin in national defense
In addition to continuing to explore applications for blockchain technology, the Department of Defense may soon consider incorporating Bitcoin into its strategic plans. Bitcoin expert Jason Lowery pointed out in his book "SoftWar: A New Theory of Power Projection and the National Strategic Significance of Bitcoin" that Bitcoin has potential for national security and suggested the establishment of the "US Hash Force". Involving agencies such as the Department of Energy and Defense. He suggested the establishment of a joint hash force command by U.S. Cyber Command or U.S. Strategic Command to cooperate with the Five Eyes Alliance (FVEYE) and NATO countries to deal with digital warfare operations by hostile countries such as Russia and China.
This proposal is consistent with the Senate Armed Services Committee’s directive to explore the application of blockchain in national security and reflects the government’s use of blockchain technology to enhance national defense and cybersecurity while strategically promoting the use of blockchain technology to improve Trends in overall national security and defense capabilities.
As these developments unfold, the intersection of blockchain technology and national security policy represents a pivotal moment in U.S. defense strategy and cryptocurrency advocacy, foreshadowing the transformative impact both industries may have in the future.