Blockchain use-cases in defense

1. What is Blockchain?

 1.1 Blockchain is a shared, distributed, tamper-resistant database. Access to the database is shared by a group of network participants, all of whom can submit new records for inclusion. However, these records are only added to the database based on the agreement, or consensus, of a majority of the group. Additionally, once the records are entered, they can never be changed or erased. In sum, blockchains record and secure digital information in such a way that is becomes the group's agreed-upon record of the past.

1.2 Blockchain is composed of "blocks" (e.g., a group) of records, with each block containing a cryptographic link to the previous block, forming a chain. The header of each block contains several pieces of information like hashes, timestamp etc. A hash can be the digital fingerprint of the previous block, or the content of the current block. Timestamp denotes when the block was created. The collection of information stored in each block can be any digital content, including simple text, structured messages, images, and videos. Any information stored in the blockchain is permanently secured – a historical record that can never be changed.

1.3 The strength of blockchain security is attributable to its core elements:

1. Secure hashing
2. Back-linked data structure
3. Consensus mechanism

1.4 In a blockchain network, consensus is used to prevent dishonest actors from writing potentially invalid information to the database. The network architecture used for storage may range from completely centralized one to completely decentralized one. With completely centralized data structure, the risk of whole data being compromised increases with hack of a single ‘boss’ node. With decentralized data structure, even if a single node gets compromised, the whole network may still remain intact.

 1.5 Hash function is like digital fingerprint of the block within the chain. The hash of the previous block is embedded in the header of the current block, which directly affects the current block's own hash. Thus, if the previous block changes in any way, its hash will change, which will affect the hash of the current block and every block thereafter. The farther back the change is implemented, the more difficult it is for a hacker to make changes to the data. An attacker must re-compute the hash not only for the target block, but for every block after it as well, which is both time and resource intensive. This allows the owner to figure out where and when data manipulation has happened and employ corrective mechanisms on a real time basis. Finally, the rules of the consensus mechanism control which new data entries are transmitted, verified, and ultimately appended to the blockchain. Consensus makes use of the blockchain’s internal consistency, which any node can easily verify.

1.6 Blockchain solves a challenging problem of reliably exchanging information over an unreliable network where not all participants can be trusted. By using a variety of messaging and consensus techniques, blockchain ensures data integrity by both rejecting invalid data and preventing valid data from being secretly modified or deleted.

2. Use Cases:

 2.1 Resilient Communications

a.   Potential pain points

In a conflict situation, defense services should be prepared for the adversary to contest the electromagnetic spectrum, particularly against critical communication systems such as satellites, undersea cables, and tactical data links. Additionally, adversaries may attempt to manipulate the data used to complete the kill chain. Countering this threat will require the capability to securely generate, protect, and share data that is impervious to these adversary actions.

b.   Blockchain solution

• Solution may be found in the architecture of Bitcoin (one of the most widely used blockchain based crypto-currency). It uses a peer-to-peer messaging model that propagates every message to every active node across the world within seconds.
• Every node on the Bitcoin network contributes to this service, including smartphones. If a node's terrestrial, wireless, or satellite internet service is disrupted, a bitcoin message can be sent through alternate channels, such as high-frequency radio, fax or even transcribed into a barcode and hand-carried. However it is received, the servicing node will verify the message, then retransmit it to every connected peer. Some of those peers are the 7,000 full nodes that are can independently aggregating messages into new blocks.
• Because there is no "master“ centralized node to disrupt, the network will continue to operate even if large portions become disconnected. Finally, the consensus mechanism ensures that invalid messages and blocks, generated by dishonest actors, are ignored.

c.    Benefits

• Bitcoin is relatively immune to suppression due to the mutually reinforcing nature of its security protocols, which include its messaging system, the adaptability of its protocol to various communication mediums, the distributed blockchain database, and the consensus mechanism.
• Blockchain can ensure that verified message traffic is reliably transmitted across the world, despite malicious attacks against communication paths, individual nodes, or the blockchain itself.

d.   Implementation case

U.S. Defense Advanced Research Projects Agency (DARPA) signed a deal with Indiana Technology and Manufacturing Companies (ITAMCO) to develop a "secure, non-hackable messaging and transaction platform” for the U.S. military.

2.2 Multi Echelon Supply Chain Management

a.   Potential pain point

Managing supply chain visibility and orchestration of all tiers of the supply chain is difficult.

b.   Blockchain solution

• Transfer of goods along the supply chain can be registered on a blockchain as transactions along with relevant information such as parties involved, price, date, location, quality and state of the product
• In specific reference to the Ghost fleet incident with F-35s, blockchain offers a solution that could establish the provenance of every circuit board, processor, and software component from "cradle to cockpit." The card design firm could use blockchain to log every design iteration of a circuit. Manufacturers could log every model and serial number of every card they produce. Finally, distributors could log the sale of batches of circuits to system integrators, who could log the allocation of circuits to specific aircraft assemblies, and so on. In this context, blockchain creates a permanent record for the transfer of assets between owners, thereby establishing provenance.

c.    Benefits

• Improve the accuracy of multi-echelon track and trace
• Improve coordination between supply chain partners

d.   Implementation case

Lockheed Martin is working with Virginia-based GuardTime Federal to integrate blockchain into its supply chain risk management, after the two firms began working on cybersecurity initiatives.

2.3 Cyber defense and data integrity

a.   Potential pain points

• Cyber threats are a critical and consistent issue in the defense sector. Military organizations constantly battle threats from hacking to data manipulation. In light of this heightened security situation, current security protocols and databases are no longer fit for security purposes.
• The cyber landscape has exposed the inherent vulnerabilities in legacy information management systems. Cyber security relies on secrets and trust to maintain security, but neither can be assured.

b.   Blockchain solution

Blockchain can ensure digital events are widely witnessed by transmitting them to other nodes on the blockchain network. Then, using consensus, it can secure those events in a database that can never be altered by a single adversary.

c.    Benefits

With the power of blockchain technology, defense organizations can confidently make decisions based on improved data and information confidence. Blockchain systems enable addition of data inputs to a single, distributed ledger, significantly reducing the risk of error and improving the efficiency of data capture and data source reliability.

d.   Implementation case

1) ERP

Blockchain may be used in implementation of ERP systems within defense services. 

2) CCTV Camera system

Blockchain can be employed to store data securely and to perform analytics on the data captured by CCTV camera system.

2.4 Certification of people, partners, parts

a.   Potential pain points

Difficulty in ensuring that workers, partners, and parts are certified to be used (license management).

b.   Blockchain solution

Certifying authorities can run a node on the blockchain to register the necessary certifications for certain properties of a products, people or partners on the blockchain, such as the origin of products. This use case leverages smart contract application of blockchain.

c.    Benefits

• Improve product and process quality
• Improve regulatory compliance
• Increase accuracy of service history

2.5 Management of configuration – design, build service

a.   Potential pain point

Difficulty in creation of a digital thread that captures asset configuration from initial design through in-service. This creates time and cost overruns during program management.

b.   Blockchain solution

?      Using blockchain, the configurations of every component in the system can be imaged, hashed, secured in the database, and continually monitored.

?      Changes will be visible to all stakeholders on a real time basis and any unscheduled change to any configuration, no matter how small, can be detected almost instantly.

c.    Benefits

• Improve engineering-manufacturing integration
• Improve asset availability
• Improve service contract profitability

2.6 Securing and verifying remote assets using IoT

a.   Potential pain points

Managing remote assets is a significant responsibility for defense and security organizations. Logging the movement or use of military assets, through various stages in an engagement process, will be more secure when done using blockchain technology.

b.   Blockchain solution

Blockchain systems are capable of operating offline and can authenticate data using just a partial blockchain, enabling efficient and faster management of offline and online assets.

c.    Benefits

Improve IoT security and insights

The use cases till now leverages the data security provided by blockchain infrastructure. Blockchain implementation has an added advantage of having less number of conflicts which in turn reduces legal costs for an entity:

2.7 Inter-company/department reconciliation

a.   Potential pain points

Currently the process is challenged by multiple systems, complex accounting, significant reconciliation, and manual efforts

b.   Blockchain solution

A blockchain-based solution can allows access to transaction documents, such as sales orders and purchase orders to perform data capture, matching, and validation as well as facilitate tokenized redemption of funds

c.    Benefits

• Single source of truth for reconciliations
• Decreased manual reconciliation
• Real time settlement of cash positions

Confidentiality is an important issue for blockchain security. Anything in the blockchain can be viewed by all users with permission in the network. However, additional security measures can be added to blockchain network. One example is traditional public key infrastructure, which is used in common access cards and network tokens. This approach allows a data owner to encrypt a record, store it in a blockchain, and subsequently maintain control access to it. This approach has been adopted in Estonia, which now protects every citizen's healthcare record inside a blockchain. The patient (i.e., the data owner) can now control which healthcare providers have access to her healthcare record, inspect the changes that have been made to the record, and revoke access when it is no longer necessary.

Globally, countries are exploring and implementing blockchain in various aspects like supply chain management, program management, legal resolution etc. With the number of people, weapons and complex supply chain network, blockchain offers a big opportunity for stakeholders to leverage its advantages and streamline business operations.

The views expressed in this article is not representative of the views of any organisation the author is or has been associated with.