The U.S. Department of Homeland Security invests in blockchain projects such as Factom, with security and privacy as primary concerns

The U.S. Department of Homeland Security, which was established in the aftermath of the 9/11 terrorist attacks, has shown a growing interest in blockchain technology.

In June, the U.S. Department of Homeland Security (DHS) announced that it had awarded $199,000 to blockchain startup Factom, which is researching how blockchain technology can be used to secure cameras used to monitor the U.S. border.

But while the project is specifically focused on the Internet of Things and data security, Anil John, director of the Department of Homeland Security’s data privacy program, stressed that the government agency has a broader interest in the strengths and potential weaknesses of blockchain technology.

“For DHS, the projects we fund are focused on applications of blockchain for proving or disproving security and privacy. This is broader than just IoT and identity verification,” John told CoinDesk.

In addition to Factom, projects such as Solarity Solutions, Respect Network, and Digital Bazaar have received funding from the Department of Homeland Security.

Additionally, to explore the use of blockchain technology within the DHS Silicon Valley office, the organization has developed an innovation program that seeks to hire startups to work on homeland security challenges.

Managing director Melissa Ho said her group is comparing data privacy procedures, with a focus on strengthening authentication, which is what led to the U.S. Department of Homeland Security’s partnership with Factom.

Equipment identification

While both Ho and John expressed interest in blockchain technology and its capabilities, they sought to emphasize that the DHS’s exploration is still in its early stages and that the tests the organization is currently conducting are only small-scale.

For example, in its partnership with Factom, John said the blockchain could help the U.S. Department of Homeland Security establish an “identity” for machines and devices, which he sees as a way to expand the agency’s monitoring services as more devices become interconnected in the coming years.

Open Technology

Another question, however, is whether the DHS sees more value in closed-source, permissioned blockchains versus open-source, public blockchains, as more agencies tend to leverage the former?

Notably, John said that from the DHS’s perspective, it “doesn’t matter” which type of blockchain technology is used, as each can be beneficial for certain purposes.

“We were interested in both blockchains, but in order to certify them, we needed to know how each performed in terms of security and privacy,” John said.

Next step

Nevertheless, John said the government agency's activities are not limited to investments.

For example, he mentioned that the U.S. Department of Homeland Security is also involved in work being done by the web standards body W3C to consider using blockchain technology to streamline online payments.

John stressed that DHS’s interest in blockchain technology remains “cautious,” and he wants the agency to study the technology in a “rational” way, focusing on determining fundamentals, such as security.

Finally, John concluded: “We wanted to get some input from the community and gain some insight into the current state of the technology and what is possible.”