Blockchain is rapidly gaining strategic importance for defense, and budgets are pouring into this technology to gain this crucial strategic advantage.
As reported in Defense News, China is heavily investing in blockchain technology to take advantage of supply chain management, smart contracts, asymmetric encryption and consensus algorithms.
China sees blockchain technology as an advantage in intelligence, weapons in war, and overall management of personnel. It also sees itself as a leader in blockchain technology at the expense of competitors such as the USA.
Chinese Prime Minister Xi Jinping wants to use blockchain to gain a new industrial advantage. Last year, China’s Government Information Center, together with various private Chinese companies, set up a blockchain-based service network (BSN) that could offer the Chinese the ability to monitor the activities of American citizens in the markets.
Russia is also researching blockchain technology and military applications specifically for cyber defense systems.
Both Russia and China continue to send large numbers of delegates to blockchain forums, asking a representative of the Russian intelligence agency (FSB) to use the following statements:
The Internet belongs to Americans, but the block chain will belong to us.
Value Technology Foundation, IBM, Amazon and Deloitte’s 2020 report stated that if the US does not increase its spending on blockchain research, it could lag behind its competitors and expose itself to cyber attacks.
The report goes on to say that the current, rather negative view of cryptocurrencies in the US creates a difficult regulatory regime for blockchain applications. Instead, the US should try to join allies such as Australia and Britain to think more strategically about blockchain’s defense and economic implications.
If blockchain is expected to be the next internet, the US should pay much more attention to this technology.