Blockchain In Defense

Defense and National security are of utmost importance to maintain the integrity of the nation. Defense data and communication security are paramount and pivotal for national strategies and intra defense communication. Any breach in the same can cause catastrophic damage to an entire nation. The defense industry of a nation is structured with convoluted range of products and deep supply chains involved in defense aircrafts and traffic control. There are significant challenges that the defense companies have to deal with. However, the right amount of investment, technology, and effort has yielded tremendous benefits to these areas. Still, the continued growth of industry demands a more appropriate solution.

The defense companies are therefore investing in digital technologies to support these goals, and blockchain is one of the emerging technologies which have gained attention in this sector.

The blockchain, a distributed, immutable and highly secure database, can answer data integrity and security challenges of the Defense Industry.

“Blockchain is well-suited to improve the performance of one of the world’s most complex, globally interconnected and security-dependent supply chains,” said John Schmidt, leader of Accenture’s Aerospace & Defense practice globally. “This elegant and paradigm-shifting technology has the potential to deliver profound benefits for the hundreds of suppliers typically involved in the manufacturing of a single aircraft.”

“86% of research respondents from aerospace and defense companies said they plan to integrate blockchain in their corporate systems by 2021”

As accenture reports, the challenges of defense companies in managing their extended enterprises beyond tier one suppliers, to introduce and deliver on new value-added services in the aftermarket, and to do so while simultaneously managing costs, has tested existing technologies. Blockchain offers aerospace and defense companies an intriguing value proposition to augment existing technology investments.

Use of Blockchain in Defense

Aircraft Configuration — It is essential to have the actual configuration of the in-air and in-service aircraft at all times. Blockchain has the ability to enable defense companies to securely share and pin-point, capture and authenticate data from a single source.

Blockchain Technology does not solve issues of complexities involved but instead, it makes the complexities more organized in order to improve real time efficiency in the current system. The complexities cluttered in the current system is a major challenge the industry aims to resolve.

Defence Supply Chain & Procurement — However globally connected the world is digitally, the geographical boundaries will always need to be protected. The failure or defense lapse can eradicate an entire nation and can affect global peace worldwide. It is hence of great importance to have authentic and genuine machinery procured and essentials supplied.

Blockchain, a distributed ledger has proved its case in supply chain management and the defense supply & procurement system needs a blockchain upgrade to eradicate the third party and corruption involved in the defense bureaucracy. For importance of Blockchain in Supply Chain Management, refer this article.

Security & Cyber and Physical Attacks — The ability to relay communications securely is a fundamental requirement of a defense organization. The defense sector has to deal with data manipulation and hacking threats and for managing this risk — they have to invest in hiring skilled security personnel and expensive data protective systems. The very characteristic of the blockchain technology provides a safe platform for carrying out transactions and communicating globally thus reducing the need for costly infrastructure and systems for managing security.

As tetranoodle reports, Cyber-attacks have been a consistent and critical issue in the defense industry, and the military organizations have been continuously battling the threats from data manipulation to hacking. The current databases and security protocols can no longer fend off the global cyber threats; as there is a need for heightened security at each level. Therefore, to deal with this, the defense companies are investing in blockchain technology-based systems. This technology represents a giant leap in the field of assurance and information security.

The defense industry has a geographically distributed supply chain that serves a uniformly dispersed set of operators, and all of them value

traceability, security and auditability. The blockchain technology appears to be a natural match and as this technology evolves in the years to come, we shall see defense as a major industry use case for this revolutionary technology.