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Blockchain Technology: Four Uses for the US Government

Updated: Jul 13

The United States has always been known for encouraging innovation in every aspect. Nowadays, one of the main methods of innovation is the use of blockchain. How does it work? Blockchain holds data in distinct chunks. New individual blocks are created as each authorized participant contributes data using secure credentials. Blockchain's decentralized structure promotes efficiency, security, and transparency. Its technology may potentially be used by the federal government to strengthen its cybersecurity initiatives in four different ways:

1. Secure data sharing: a blockchain might be used by government agencies that deal with sensitive personal health information to keep such information on a secure network and enable communication between the US Department of Veteran Affairs (VA) and healthcare providers. The chain ensures that the data is neither lost nor altered by acting as a verified record that is immune to hostile actors. If used correctly, this technology might assist the VA in preventing data breaches and providing for the requirements of US veterans.

2. Identity management: The objective of the Department of Homeland Security includes identity management as a vital component. The organization of this data as nodes on a blockchain increases the security, speed, and accuracy of these procedures. Automation of the verification process would be aided by the use of a blockchain for identity management. Increased productivity brought on by cutting-edge technologies like blockchain in homeland security problems might save lives.

3. Medical supply chains: Blockchain enables effective streamlining and retrieval while also keeping an eye out for illegal or fake activities. Governmental organizations are looking into how new technologies, like blockchain, may be used to carry out development projects. Blockchain technology might enhance the global health supply chain during the COVID-19 pandemic when vaccinations must be safely made, shipped, and received throughout the world.

4. Smart energy grids: International gas commerce and the development of decentralized energy networks can both benefit from blockchain technology. For instance, scientists are developing ways to finance solar microgrids using "smart contracts" that can recognize solar resources and make payments easier. US Agency for International Development (USAID) is still researching to better understand smart grid technology and to build collaborations with NGOs.

Blockchain is an established technology that is no longer considered speculative. With its use, the US government at the Federal Emergency Management Agency, the US Department of Defense, the VA, and the USAID will be driven by the need to protect its citizens against fraud and cyberattacks, increase efficiency, and ensure data privacy.