According to CryptoComLearn, U.S. government agencies are increasingly exploring the adoption of Bitcoin and blockchain technology, aiming to harness the cryptographic security of these protocols to safeguard military systems from mass hacking campaigns, counterintelligence, and other hostile attacks. The Pentagon has shown particular interest in using cryptographically guarded blockchains to aid its operations.
Why Government Agencies Are Eyeing Blockchain
An August 17, 2017 article in the Washington Times elaborated on the rationale behind government interest in blockchain. It stated, “Particularly alarming to U.S. defense analysts are Chinese intelligence collection operations aimed at commercial transactions, which have been highlighted as a growing threat to U.S. national security with the American military personnel, national security decision-makers and critical infrastructure entities increasingly targeted.” Blockchain's tamper-resistant and immutable features are believed to prevent malicious actors from stealing information, ransoming systems, or eavesdropping, while potentially reducing long-term costs.
Pentagon and NATO’s Secret Experiments
The Pentagon and NATO have been working discreetly but aggressively to determine the best utilization of blockchain. NATO is particularly interested in improving the efficiency of intelligence processes, including financing and logistics. The Washington Times noted: “The Pentagon and U.S. NATO allies have been moving discreetly but aggressively in recent months to develop military-related apps exploiting the capabilities of blockchain. NATO is considering the technology to improve efficiencies across such traditional processes as logistics, procurement and finance.”
DARPA’s Blockchain Initiatives
The Defense Advanced Research Projects Agency (DARPA) has also shown strong interest in blockchain technology. It is currently developing a blockchain-based messaging application to provide a secure platform for operatives to send encoded messages in combat situations. Furthermore, DARPA aims to create “unhackable” code for blockchain use, which would help expose attackers. According to a Foundation for Defense of Democracies memo, DARPA’s goals include addressing various attack vectors and the consequences of inaction: “The cost of inaction is great. While we laud the recent focus on supply chain security problems of the defense industrial base (DIB), we endorse a broader notion of the range of U.S. interests threatened by this phenomenon…In a conflict scenario, the collapse of the domestic economy would not only degrade national morale but disrupt the primary source of material support for U.S. forces.”
Blockchain as a Security Guarantor
With these threats in mind, the government views blockchain technology as a potential stronghold. By placing sensitive documentation on blockchain, supply chains could be protected from disruption. However, it remains unclear exactly how various agencies will implement blockchain and Bitcoin to further their agenda. These developments are being closely watched as potential catalysts for broader institutional adoption of cryptocurrency technologies.