Use of blockchain is steadily rising across government as a secure, transparent, and cost-effective way to track the movement of goods, services, and data. From 2020 to 2023, government spending on blockchain more than doubled. In fact, spending may be even higher as blockchain may be used as part of other solutions, like the cloud, so spending on it is buried in larger technology procurements. Additionally, more and more procurements are specifying the need for blockchain expertise.
Blockchain in Government Today
Blockchain is being used to meet a wide variety of key government challenges, from combating fraud to reducing spending waste to improving the transparency of government services. The IRS is using blockchain data analytics to track down transactions and confirm their legitimacy. The Air Force is looking at it as a key component to drive predictive maintenance. The Defense Threat Reduction Agency is exploring how blockchain can secure systems against quantum computing threats to modern encryption.
Customs and Border Protection (CBP) has used blockchain to protect intellectual property rights on American imports. The technology enabled CBP to securely exchange data with manufacturers, retailers, rights holders, and importers digitally, which reduced the need for physical examinations. Now, a group of legislators is pushing CBP to expand their use of blockchain to support border security operations. A House oversight subcommittee suggested that CBP utilize blockchain in a system to house data like biometrics, visa information, and customs documentation to help CBP more efficiently verify travel and identity documents, improve the tracking of goods through customs, manage border control personnel deployment, and share data across relevant agencies in real-time.
Securing Blockchain
With these mission-critical use cases, securing blockchain technology is paramount. Security starts with knowing the source of the blockchain technology. A bipartisan bill, the Creating Legal Accountability for Rogue Innovators and Technology Act of 2023, or the ''CLARITY Act of 2023,'' would prohibit the Federal government from using blockchain technology developed in China or other adversarial nations. The aim is to ensure that U.S. intelligence or other valuable data cannot be accessed by foreign powers.
Blockchain technology already in use is being monitored for security. Recently, the Government Accountability Office said the Federal Reserve and the Securities and Exchange Commission have succeeded in establishing coordination mechanisms with other federal regulators and financial working groups to identify the risks posed by blockchain-related products and services. However, the report also found that the agencies have not convened these review bodies frequently enough to meet the desired level of risk mitigation.
Stay on top of government efforts to implement and regulate the use of blockchain with these resources from GovEvents and GovWhitePapers.
- Data Forum 2024 (September 18, 2024; Reston, VA) - This event is a collaboration between ACT-IAC and the Data Foundation. Learn how government and industry are governing, exploring, and utilizing data to make future business decisions.
- Border Technology Summit 2024 (September 24-25, 2024; Del Mar, CA) - Hosted by the Institute for Defense and Government Advancement, this event provides a forum to explore the latest advancements in border security technology.
- Imagine Nation ELC 2024 (October 27-29, 2024; Hershey, PA) - This event brings together the government technology community to discuss the issues facing government and work together to develop practical solutions and innovative strategies. The format maximizes interaction and learning among the participants, allowing them to delve deeper into areas of interest.
- Trend Report: The Future of Blockchain in Government - More Than Crypto (white paper) - This publication discusses how blockchain is used, how it evolves on the dark web, its future with digitizing assets, and how it could be used within the government.
- Automated Systems: The Complexity of the Supply and Logistics System of the U.S. Army and the Need for Automation (white paper) - It is important to look at how supply chains and the entire logistical operation of the U.S. Army can be updated to combat new logistical threats and better defend the Nation. How is the Army (and the entire U.S. Armed Forces) prepared to deal with supply chain issues in times of direct action and during combat operations?
For more on blockchain use in government, visit GovEvents and GovWhitePapers for additional events and resources.
