Photo by Israel Palacio on Unsplash.
Key Takeaways
- Blockchain could boost cryptographic integrity in defense supply chains.
- Senate mandates DOD briefing on blockchain by April 2025.
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The US Senate Committee on Armed Services has directed Secretary of Defense Lloyd Austin to explore potential applications of blockchain technology for supply chain management and national security within the Department of Defense.
In its fiscal year 2025 National Defense Authorization Act (NDAA) report issued on July 9, the committee recognized blockchain’s potential to enhance the cryptographic integrity of defense supply chains, improve data integrity, and reduce risks of data manipulation by adversaries.
The report calls for the DOD to investigate blockchain use cases to “achieve national security goals and to create secure, transparent, accountable, and auditable data related to supply chains.
The committee has instructed Secretary Austin to provide a briefing by April 1, 2025 covering six key areas. These include plans for pilot programs to explore blockchain in national security applications, identifying benefits and risks for supply chain management, analyzing current adoption in industry and by foreign countries, and providing feasibility and cost estimates.
“The committee notes that blockchain technology has the potential to enhance the cryptographic integrity of the defense supply chain, improve data integrity, and reduce the risk of the manipulation or corruption of certain types of data by near-peer competitors,” the report stated.
This directive comes as US politicians increasingly advocate for crypto adoption. The Republican National Committee (RNC) recently passed a draft policy platform supporting mining for Bitcoin and other proof-of-work networks. Their platform states: “We will defend the right to mine Bitcoin, and ensure every American has the right to self-custody of their Digital Assets, and transact free from Government Surveillance and Control.”
The Senate committee’s blockchain exploration directive and the RNC’s crypto-friendly stance highlight the growing interest in blockchain and crypto applications at the highest levels of US government and politics. Trump, the leading candidate for the upcoming US elections, has stated that he believes the US should lead in crypto and blockchain innovation.
“Our country must be the leader in the field, there is no second place,” Trump said.
These developments could potentially accelerate adoption of blockchain technology in critical infrastructure and government applications, while also shaping how crypto policy could be better understood and implemented in the future.
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