Blockchain in the defense sector

Main article: Blockchain

2020

PwC: Defense of countries should use blockchain for three reasons

In late August 2020, PriceWaterhouseCoopers (PWC), a consultancy, released a report on the benefits of using blockchain in the complex supply chain of parts needed for defense production. The document focuses on three reasons why the use of blockchain in this industry is extremely important: increasing transparency, checking suppliers, improving the level of security in cyberspace.

As an example that best demonstrates the entanglement of the supply chain, PWC introduced F-35 fighters. Each aircraft consists of about 300 thousand components produced by more than 1,900 suppliers. Some individual parts require components from multiple vendors. The more levels in the supply chain, the more predisposed it is to disruption and cyber attacks. Consequently, the PWC recommends a greater focus on supplier risk management.

PwC: Defense of countries should introduce blockchain technology for three reasons

According to the PWC, blockchain does an excellent job of verifying each stage of the component lifecycle. The capabilities of the innovative solution allow you to control all levels of the supplier network, and not manage only one part. Blockchain also allows identification and qualification verification of persons involved in the supply chain, which is especially useful in the case when those who are responsible for certain elements of armed systems are involved in the process.

The US Department of Defense is clearly aware of the potential of blockchain, having awarded several contracts to blockchain companies over the past year. Thus, the US Navy signed a $9.5 million contract with the blockchain company SIMBA Chain for the deployment of a messaging and implementation platform.

Blockchain is no longer an untested new solution; it has the potential to improve transparency and performance... Given this potential, the only question is which OEM dares to seize the initiative,[1] report said[2]

The United States lags behind Russia and China in using blockchain for military purposes

In mid-May 2020, experts from Amazon Web Services (AWS), IBM, Deloitte and a number of other companies that took part in a briefing organized by the Value Technology Foundation think tank agreed that the United States is lagging behind Russia and China in the race to use blockchain for military purposes.

The event was held with the participation of representatives of technology, consulting companies and developers of blockchain technologies. In addition to AWS, IBM and Deloitte specialists, Accenture, CGI Federal, ConsenSys, SIMBA Chain and Colvin Run Networks participated in the creation of the document.

The Value Technology Foundation, supported by Amazon Web Services, IBM and Deloitte, presented an analysis of the application of blockchain in the military industry, noting that the United States is lagging behind China and Russia in this regard.

Both superpowers, which pose the greatest threat to the United States, invest heavily in both research and development of blockchain technology, according to a report compiled following a briefing.

Experts believe that China he is conducting an offensive in the "economic war," preparing to introduce digital currency, and Russia is actively developing a defense laboratory that should track and prevent cyber threats using blockchain technologies.

According to the authors of the document, the United States should similarly launch its blockchain research and prepare for hostilities in the new sector using new technologies. Experts are confident that all efforts will immediately pay off.

In the field cyber security , blockchain can be used by the military in all directions - from "releasing weapons" to preventing the erasure of information, which is impossible in the case of ordinary databases. In addition, blockchain can support governance and control mechanisms through multi-party. authentications If the powers of the command are possessed by several parties and they must reach consensus before taking certain measures, then the system will be better protected from errors.

Such tactics can have certain advantages for all units of the US armed forces, especially in the field of space forces, experts say. Blockchain can contribute to the development of this unit by adding multifactor authentication to satellite communication systems. Usually such systems are unsafe and, according to the report, have previously been exploited or found to be vulnerable to the actions of hackers. It is with such problems that blockchain technologies could cope.

To confirm their command, an attacker will need to gain control over an arbitrary number of accounts and find the ability to use these accounts to perform certain actions on the blockchain, the document says.

Lockchain can be used in military supply chains according to the same principle as in civilian scenarios, namely, to identify counterfeit products

Experts also advocate the use of blockchain in military supply chains for the same purpose pursued by civilian logistics companies: identifying counterfeit goods, tracking the origin of products, ensuring food safety, and quickly searching for goods. All this is necessary for the military no less than civilians, experts say. However, it should be noted that military supply chains have already begun to introduce blockchain technologies. The report documented several blockchain tests in defense aerospace, additive manufacturing of aircraft parts and naval contracts.

The defense industry would benefit from introducing blockchain into the procurement process, the panel of experts said. Smart contracts will help log deals whose data is only shared with authorized parties, while allowing real-time oversight by the Defense Department. In this way, blockchain will increase transparency and the ability to audit in the giant military-industrial procurement system, which in 2018 admitted that it lost hundreds of billions of dollars due to contract fraud.^[3]

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