Blockchain technology has gained traction across the U.S. government as a practical tool for multiple diverse purposes. From streamlining procurement to preventing fraud, agencies are increasingly exploring how blockchain can enhance transparency, security, and efficiency in federal operations. However, with innovation comes risk. The government is also looking into how to ensure the technology is not misused to conceal illicit activity, commit fraud, or obscure accountability.

Fraud Prevention

Since every transaction in a blockchain is recorded permanently, malicious actions are traceable, which increases accountability. Each transaction is unique and chronologically linked, meaning a record cannot be copied, altered, or duplicated without triggering detection. This level of traceability allows governments to confirm that payments are going to the intended recipients. For foreign aid, payments can be tracked not just to the intended country but as they continue on from there. In terms of domestic benefits, blockchain can verify the identities of welfare recipients, while simultaneously confirming their eligibility. Continue reading →