The U.S. Department of Homeland Security (DHS) Science and Technology Directorate (S&T) has announced a $199,000 grant to Austin-based blockchain company Factom for a project titled "Blockchain Software to Prove Integrity of Captured Data From Border Devices." The initiative aims to use distributed ledger technology to secure the digital identity of Internet of Things (IoT) devices, preventing spoofing and tampering.
Factom to Build Immutable Identity Logs for IoT Devices
In a press release shared with Bitcoin.com, DHS revealed that the funding was awarded under Solicitation Number HSHQDC-16-R-00035, focused on securing IoT devices. This is the first proposal funded through the newly created Silicon Valley Innovation Program (SVIP). Dr. Reginald Brothers, DHS Under-Secretary for Science and Technology, stated: "IoT devices are embedded within our daily lives – from the vehicle we drive to devices we wear – it's critical to safeguard these devices from adversaries. S&T is excited to engage our nation's innovators, helping us to develop novel solutions for the Homeland Security Enterprise."
Factom plans to create an identity log that records key device attributes such as manufacturer information, available firmware updates, known security vulnerabilities, and granted authorities, while adding a time dimension for enhanced security. This log will be stored on Factom's blockchain, making it immutable and resistant to tampering. The system will enable DHS to verify that IoT devices are authentic and have not been compromised, ensuring the integrity of data collected from border sensors, wearables, and other connected equipment.
Tiana Laurence, CMO of Factom, told Bitcoin.com: "We are excited to work on the project with DHS. The US government has been looking at the potential of blockchain technology for a while and we feel honored to help. This will be an interesting use case, because of how interconnected all of our devices have become. IoT devices are also deeply woven into our lives. They are not that secure, yet they contain a lot of private and intimate data about us. We hope to add some security and redundancy." She emphasized that the mission is to thwart hackers and corruption of device records, making them free from fraudulent activity.
DHS Continues Blockchain Support: Previous SBIR Funding
The grant follows a trend of DHS engagement with blockchain startups. Only last week, DHS issued a press release detailing the funding of six blockchain startups under the Small Business Innovation Research (SBIR) initiative, each awarded $100,000 to help DHS further its technological progression. Factom's award, however, is specifically aimed at IoT security and is larger in value, reflecting the agency's heightened focus on this domain.
Melissa Ho, Managing Director of S&T's Silicon Valley Innovation Program, added: "The start-up community is already developing innovative commercial solutions for IoT, so why not take advantage of that? DHS is engaging this community to gain access to products that will have a large impact to our enterprise, and we're excited by the diversity of solutions this solicitation is able to bring to the Department."
Factom will use the funds to accelerate the development of a prototype that can be piloted within DHS operational environments. The system is expected to eventually be deployed across the 16 critical infrastructure sectors monitored by DHS, including energy, transportation, and finance. As IoT devices proliferate — from smart city sensors to medical wearables — blockchain's decentralized trust model offers a promising solution for securing digital identities at scale. Factom expressed satisfaction with the funding and plans to leverage its blockchain technology to deliver secure solutions for DHS and other global infrastructure systems.