JULY 20, 2023 – Most people equate blockchain technology to Bitcoin and the crypto industry, which is highly inaccurate but at the same time makes perfect sense since the Bitcoin price boom from a few years ago was the event that made blockchain a popular term in the first place. However, it would be wrong to assume that blockchain’s use cases are limited to underpinning digital currencies. A lot of things have happened since the early days of the crypto industry, and blockchain technology expanded its scope tremendously over the years, now being used across a range of industries from finance and banking to healthcare and real estate.
More recently, defense and military have been added to the ever-growing list of blockchain applications, and it’s expected that this innovative technology will bring massive improvements to the sector. The ongoing power competition has prompted countries like USA, Russia and China to turn to blockchain technology to improve their defense strategies and give their military forces an advantage over their rivals. As the former NATO Secretary General Anders Fogh Rasmussen stated, digital solutions have been used in warfare ever since the ‘90s, so the introduction of cutting-edge technologies such as blockchain might be definitory for the future of the military industry.
Blockchain use cases in the military
Despite its staggering progress, blockchain technology is still in its infancy, so we have yet to unravel all its capabilities and use it to its full potential. However, even at the current stage, blockchain can provide a series of benefits to militaries around the globe. By implementing blockchain-based solutions, armed forces will be better equipped to counter cyberattacks which have grown in sophistication and prevalence in recent years as many terrorist organizations have started using the internet to carry out criminal activity.
The nuclear arms race is another major point of concern in today’s military scene. There are currently nine nations that hold nuclear weapons and continue to ramp up their arsenal. And although there are treaties and laws in place to control nuclear activities in these countries and maintain peace, the risks involved in the spread of nuclear weapons call for stronger measures to navigate this problematic space. Nuclear diplomacy is a very shaky ground where parties don’t trust each other. As a technology that uses a trustless mechanism to ensure consensus between different parties, blockchain could become a game-changer in nuclear deterrence.
Due to its inherent security and immutable nature that makes data manipulation virtually impossible, blockchain can also prove extremely useful in the event of armed conflicts, enabling the confirmation of military commands and intelligence. But the area where blockchain could bring the biggest improvements is without a doubt military logistics and supply chain.
Modern-day conflicts are infinitely more complex and unpredictable than those of the past owing to the technological advances of the last decades and the many moving parts involved in military operations these days. Therefore, the management of military logistics and supply chain has become a major point of concern, mainly because militaries are now relying heavily on private contractors for a variety of activities, inducing consulting, software development, simulations, equipment maintenance, threat analysis, and so on. While outsourcing services comes with a series of benefits, it also creates vulnerabilities since private enterprises don’t benefit from the same security levels as government entities.
For example, many military organizations are now employing advanced software for equipment manufacturing purposes, allowing them to improve overall operational efficiency. However, if cybercriminals gain access to these programs, the consequences could be devastating. Not only would this damage the functionality of the software, but it could also compromise classified information. It’s extremely important for these prices of software and equipment to be thoroughly protected against cyberattacks in order to avoid these scenarios.
By including all supply chain components on a blockchain, no malicious entity would be able to enter these systems, as cybercriminals would have to hack all the computers on the network to gain access. The amount of resources required to break into a blockchain-based system is enough to deter any hacker from trying. Bitcoin and other popular digital currencies stand proof of blockchain’s inherent security as none of these crypto projects has ever been hacked.
The first steps towards blockchain integration
Blockchain’s potential for the military industry in terms of operations, management and security has been noted by a number of NATO countries, including the United States. Blockchain is mentioned in the 2018 National Security Doctrine Act of the U.S. Congress, where the technology is acknowledged as a potential solution to be explored by the military. It wasn’t long until the United States Naval Aviation Command took the first step in this direction by employing the technology in marine aviation operations for accurate record-keeping or aircraft spare parts and reducing operating costs.
What’s more, the U.S. The Department of Defense (DoD) has already expressed interest in using Blochian technology to mitigate risks and secure defense-critical supply chains. The DoD operates a massive and extremely complex supply chain worth over $100 billion, which requires them to employ unique supply chain management solutions to address vulnerabilities. Blockchain technology might be able to fill security gaps and help create a more robust and resilient defense supply chain.
But the U.S. is not the only country that has its eyes set on using blockchain technology for military purposes. Its Russian counterparts seem to take a similar approach as they have been confirmed to study potential blockchain applications in cybersecurity, as well as the integration of blockchain-based solutions to streamline communication on the battlefield.
Final thoughts
Although blockchain has only recently entered the radar of militaries around the world, it is already clear that leveraging this innovative technology for military purposes can provide numerous benefits. It might be too soon to say to what extent this will impact global defense operations, but we can easily assume that blockchain’s role in the military will increase in the years to come.