- The US Senate Committee directed the Department of Defence (DOD) to explore blockchain technology for supply chain management and national security, on July 9.
- Governments widely recognise blockchain as an essential tool for data security and anti-counterfeiting, with Nigeria, South Korea, and Germany having initiatives in this regard.
OUR TAKE
The US Senate Committee directed the Department of Defence (DOD) to explore blockchain for national security. In the coming years, blockchain adoption is expected to accelerate significantly across various sectors. Governments and institutions will increasingly recognise its potential for enhancing data security, transparency, and efficiency. At the same time, the growing advocacy for bitcoin and cryptocurrency adoption among US politicians, including Donald Trump’s support for cryptocurrencies and bitcoin mining in his policy platform, indicates substantial political momentum for digital currencies.
–Sylvia Shen, BTW reporter
What happened
The US Senate Committee on Armed Services directed Secretary of Defence Retired General Lloyd Austin to investigate how blockchain technology could enhance supply chain management and national security within the Department of Defence (DOD) on July 9.
The US Senate Committee on Armed Services released the fiscal year 2025 National Defence Authorisation Act (NDAA) report, detailing authorisations for Army, Navy, Air Force, and Department of Defence projects.
The committee acknowledged that blockchain technology could significantly enhance US national security and economic supply chains.
They stated, “The committee notes that blockchain technology has the potential to enhance the cryptographic integrity of the defence supply chain, improve data integrity, and reduce the risk of the manipulation or corruption of certain types of data by near-peer competitors.”
The Senate committee has tasked the DOD to explore blockchain’s potential for national security, focusing on creating secure, transparent, and auditable supply chain data. The report recommends pilot programs and research into supply chain management, cybersecurity for critical infrastructure, and procurement auditability.
Secretary of Defence Retired General Lloyd Austin has been instructed by the committee to provide a briefing on the testing domains by April 1, 2025.
Also read: Nigeria plans nationwide AI and blockchain research centres
Also read: 5 ideas from Sergey Gorbunov on blockchain interoperability
Why it’s important
Governments worldwide are increasingly recognising blockchain as a crucial tool for safeguarding sensitive data and preventing counterfeiting.
Germany exemplifies the trend by exploring blockchain’s potential in the healthcare industry through workshops and pilot projects led by the Federal Ministry of Health, including secure electronic prescriptions and decentralised patient consent services.
In June, the South Korean government announced plans to launch a $14.5 million program to support and advance blockchain technology. Meanwhile, Nigeria is also advancing its blockchain initiatives with plans to develop its own technology, called “Nigerium,” which will be overseen by the National Information Technology Development Agency (NITDA).
The global push to leverage blockchain technology for enhancing national security and driving economic progress is undeniable.
