Blockchain is likely to be a technology that solves the most vital issues of such industries as healthcare, education, finance, and public sector. Although not so many countries have a legislative basement for introducing blockchain, there’s still obvious evidence of its reasonability. What if we talk about the military industry? Could smart contracts optimize this industry?
The military industry is based on three components that play the most important role: cybersecurity, secure communications, and supply chain management. Obviously, security is the top priority for the military industry. Blockchain, being famous for its extreme security, could be a good option for bringing new approaches to keep important data safe and secure.
“Smart contracts ensure compliance while eliminating unnecessary middlemen from the process (not to mention limiting systemic waste, fraud, and abuse). When it comes to the military and defense contractors or suppliers, improving transparency is another significant use case for blockchain technology. Consider that:
- Procurement will be able to view the entire product lifecycle at the point of purchase.
- Quality assurance sensors can track the location of materials within the supply chain.
- The efficiency of shipping and receiving can be greatly improved (as with automation).
This will result in cost savings for all parties – procurement, suppliers, end users. Among the cost-of-business benefits that extend this value of blockchain-based transparency are the following:
- Suppliers extend credit to buyers and receive payment on their approved invoices.
- Buyers receive extended invoice due dates, which can be double the original length of time.
Increased data security
Moreover, confidential communication and other information can be stored in encrypted formats, in off-chain databases where cryptographic hash are available on the blockchain. Enforcement by trusted computers (as opposed to unreliable humans) further enhances cybersecurity. A decentralized network can store important military records, bringing added privacy and security. Confidential data can be managed privately and safely via blockchain (as opposed to on a central server). This can power the decentralization of routine processes through a large library of smart contracts.”