The Use of Blockchain to Track DOD Funding and Auditing
Abstract
The Department of Defense (DoD) currently faces a significant problem when it comes to auditing and tracking financial transactions. The DoD has failed every audit since 2017 although it is gradually improving its auditable rating year after year. Concurrently, Blockchain is an emerging technology that has typically been used for cryptocurrencies but has slowly been adapted by private enterprises for their auditing and invoicing problems. This study investigates the value proposition of blockchain technology to improve DoD financial tracking and auditing. To test the hypothesis that blockchain is the optimal option for the DoD, this paper employs an industry blockchain adoption flowchart, requirements matrix for financial regulations and audit weaknesses, and a rigorous benchmark comparison chart between the current financial system and well-established private company's blockchain (which DoD could replicate). The results of the flowchart and matrix demonstrate that Permissioned Private Blockchain can track government transactions in instances where contracts between a government agency and contractor could be condensed into variables and formulas. The outcome of the comparison shows that a DoD replicated blockchain system would excel at Latency, Error Rate, Time, but not Cost Metrics when compared to other established DoD financial accounting systems.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 15, 2022
- Accession Number
- AD1181347
Entities
People
- Prithvi Prasanna
Organizations
- Air Force Institute of Technology