News Supply chain

South Korea to use blockchain for arms procurement

arms defense procurement

Today South Korea’s state arms procurement organization “Defense Acquisition Program Administration” (DAPA) announced plans to use blockchain. The aim is to enable transparency and prevent fraud by sharing data between different agencies. Bidding for defense contracts, as well as the bid evaluation and results will be logged on the blockchain.

Korea’s Agency for Defense Science and Technology will also participate in the project. In the future, defense contract bids will be submitted digitally.

Additionally, Korea runs some funding programs for the defense industry. The process of applying for and granting funding will be logged on a blockchain.

A third blockchain application will be to record military firearm transport permits. This will particularly help with data sharing between the Defense Business Agency and the National Defense Technology Quality Agency.

Last year Accenture published a report in which it predicted 86% of companies in the aerospace and defense sectors will use blockchain technology by 2021. The consultant is also working with French aerospace and defense contractor Thales to use blockchain to record the configuration of in-service aircraft.

“Knowing the actual configuration of an in-service aircraft at any point time is important,” said John Schmidt, Accenture’s global Aerospace & Defense lead. “Blockchain enables aerospace and defense companies to securely share, capture and authenticate data from a single source.”