The invasion of Ukraine by Russia exposed NATO’s supply chain vulnerabilities, highlighting the need for increased traceability and security. A Georgia Tech study found that blockchain offers the best remedy, as it connects data blocks via mathematical codes, making it more difficult to hack than a centralised ledger. Blockchain applications range from digital currency to financial transactions, supply chains, healthcare, and insurance.
Many NATO members have invested in blockchain exploration, with the US Air Force awarding $30 million in 2017 to SIMBA Chain for integrating blockchain into military supply chains. The European Union launched a project in 2021 to develop a transparent way of tracking the sustainability of critical mineral supply chains. China also launched a Blockchain Application Subcommittee as part of its 2021 five-year plan.
Ukraine is an ideal location to evaluate different technological solutions for NATO’s supply chain problems, including digital databases, RFID tags, QR codes, and blockchain. Digital databases are a good first step, but RFID/QR codes are insecure and easily counterfeited. Blockchain is the most secure and transparent solution, but requires high technological proficiency and has been overhyped due to its use in cryptocurrency.
Adopting blockchain into NATO’s weapons supply chain would not solve all of its problems and would take a long time. Before adoption, the alliance would need to ensure a good digital foundation for its weapons supply chain and access to all lower-tier supplier information. Members would need to be on board with the use of such controversial technology, which would involve education workshops and workforce training.
If adopted, blockchain would ensure a virtually impenetrable and transparent supply chain, making it well worth the investment in a world of increasing great power competition and potential quantum computers decrypting traditional security measures.
Some even believe that blockchain technology could revolutionise warfare, bringing about a so-called Revolution in Military Affairs.
