Blockchain Benefits for National Security – Applications in the Ukraine War
Russia invaded Ukraine, companies around the world are facing not only a financial crisis but technical difficulties in providing their services. In times of war, we've seen businesses suspend their operations, communication has been infiltrated, finance, transportation and energy infrastructures traditional systems are vulnerable to enemy cyber attacks. Within this instability, cryptocurrency has become the only real certainty and a crucial tool for Ukraine's national security. Blockchain technology and cryptocurrency have already brought numerous innovations, and now we are witnessing how crypto, and NFTs, serve as potential lifelines for survival on all fronts.
With the increased risk of infrastructure and data damage, the security of cryptocurrency is particularly appealing to government and military operations. Crypto has become an essential tool of Ukraine's defense, providing flexibility and speed that literally saved our soldiers' lives. The outpouring of help to Ukraine is a vivid illustration of the technology's potential to help strengthen open societies and safeguard democratic values. Policymakers who specialize in security would rather have more financial activity flow to cryptocurrency because it is easier to trace.
The fact that cryptocurrency transaction is generally quick, secure, and direct process makes it a very effective humanitarian tool. Donating in crypto or NFTs allows funds to land directly in the hand of displaced Ukrainians without the need of a central bank. Crypto also provides a way for donors to track how their contributions have materialized. Blockchain technology makes it possible to see an itemized list of everything that was spent out of wallets, which is absolutely incredible for government transparency.
The decentralized nature of cryptocurrency enables people to use it to a country where they may have traveled for safety. Giving citizens access to money in currencies other than their own can mean the difference between poverty and subsistence.
Ukraine's current experience exemplifies the opportunities and challenges ahead for the blockchain industry and may transform how aid is distributed globally. It might also help the sector demonstrate a side of crypto that policymakers and regulators often overlook in their concentration on using currencies as a means of illicit finance. Blockchain and cryptocurrencies clearly offer a myriad of benefits, as evident in this article. However, a comment must be made regarding these assets' regulation. An adequate set of regulations compiled smartly could ensure both a high level of investor & consumer protection while ensuring market integrity and promoting innovation. Emphasizing regulations that protect consumers and investors from some of the dangers associated with investing in crypto-assets and other blockchain-based financial products, as well as assist them in avoiding fraudulent schemes. This would bring the industry in line with similar regulations legacy financial institutions have been subject to for decades without harming serious industry players or changing the nature of De-Fi technologies. Having regulations in place would actually promote a more widespread adoption of the technology, make its benefits more apparent and increase trust in the market.