{"id":12666,"date":"2019-06-05T19:58:27","date_gmt":"2019-06-05T19:58:27","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2019\/06\/05\/is-the-us-the-weak-link-in-the-blockchain\/"},"modified":"2026-08-08T04:34:46","modified_gmt":"2026-08-08T04:34:46","slug":"is-the-us-the-weak-link-in-the-blockchain","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/it-networks\/2019\/06\/05\/is-the-us-the-weak-link-in-the-blockchain\/","title":{"rendered":"Is the US the weak link in the blockchain?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Blockchain advocates on a June 5 panel warned that the United States could be falling behind other countries on the technology.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The discussion at the ACT-IAC Emerging Technology Forum identified two central problems hindering more widespread adoption of blockchain in the government: a lack of funds from the government and a lack of understanding from policymakers about the technology.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019re at a stage where we\u2019re trying to get beyond bitcoin,\u201d said Bill Rockwood, staff co-chair of the Congressional Blockchain Caucus. \u201cEveryone\u2019s seen bitcoin in the news, the market volatility, what is it used for and why those things are important. I think people often conflate bitcoin and blockchain and it\u2019s very hard to separate the two, especially when you\u2019re dealing with members that, you know, didn\u2019t grow up with smartphones or \u2026 they have trouble with email.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Alan McQuinn, a senior policy analyst at the Information Technology and Innovation Foundation (ITIF), called for the government to invest more money into blockchain, pointing to other \u201cfoundational technologies\u201d that the government was involved in creating, like the internet and the cellphone.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But right now, McQuinn said, federal money allocated for blockchain technology is a \u201crounding error of a rounding error of a rounding error.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe really need to start thinking about how we can be competitive,\u201d McQuinn said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Blockchain technology can have immediate security benefits for the government, McQuinn said. Land registration through the government agencies is one example.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cYou have a network where people often have to submit paper files that can be faked and then it\u2019s up to the government agency to decipher whether something is real or not,\u201d McQuinn said. \u201cBlockchain offers the ability to create this much more fundamental auditing process.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Blockchains for record keeping can be an important security measure because \u201cpublic blockchains enable permanent, time-stamped records of transactions that are auditable to everyone but cannot be changed by any single party,\u201d according to an <a href=\"https:\/\/itif.org\/publications\/2019\/04\/30\/policymakers-guide-blockchain\">ITIF report<\/a> from April.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">McQuinn also said blockchain could help agencies with complex supply chains, like the Defense and State Departments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While much attention is focused on the trade war between the United States and China, the Chinese government has taken steps toward blockchain development, backing the creation of a blockchain-centric city, according to cryptocurrency news site <a href=\"https:\/\/cointelegraph.com\/news\/chinese-government-supports-development-of-blockchain-city-in-malaysia\">Cointelegraph<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the end of last month in a speech, Chinese President Xi Jinping praised blockchain technology, calling it a \u201c<a href=\"https:\/\/www.cnbc.com\/2018\/05\/30\/chinese-president-xi-jinping-calls-blockchain-a-breakthrough-technology.html\">breakthrough<\/a>.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Jason Brett, founder of the Value Technology Foundation and board adviser at the Wall Street Blockchain Alliance, said the United States needs to wake up when it comes to blockchain.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cMy personal belief is that the United States has a problem with this new emerging blockchain technology,\u201d Brett said. \u201cAnd it\u2019s not cryptocurrency. What it is is us potentially losing the blockchain race to other nation states and other foreign countries.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As blockchain develops, Brett said the U.S. government needs to lead the advancement of the technology.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIs it possible that this might happen where another country could end up with this technology over us? Let\u2019s not find out,\u201d Brett said. \u201cBecause we\u2019re the United States. We were on the forefront of the internet, and a lot of the internet and work we do today is all U.S.-based and has open standards for free societies, and that\u2019s a critical part of this discussion.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A lack of funds and understanding is slowing down government adoption, according to a panel of technology 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