CAN BLOCKCHAIN HELP THE DEPARTMENT OF DEFENSE ACHIEVE A CLEAN AUDIT?

[...]the 2017 high risk report noted DoD's inability to provide sufficient appropriate evidence to support the accuracy of its financial statements as a major factor precluding the military services, subcomponents, and the larger department from achieving clean, unmodified audit opinions.4 Furthermore, the 2017 report highlights deficiencies in internal controls over DoD finances. Problems with reconciliations were identified at each military department as well as the Defense Finance and Accounting Service (DFAS) and other defense organizations (ODO).6, 7' 8' 9' 10, 11 Delivering Accuracy A blockchain, or distributed ledger, is a database in which each time-stamped batch of records (i.e., block) references the previous block in the chain using a cryptographic hash that makes attempts to alter history easily detectable.12 Digital currencies, such as bitcoin, use blockchain and asymmetric cryptography to create distributed, immutable records of account balances, so funds can only be spent if the balance is sufficient and the transaction authorized with a valid private key.13 Blockchains can be designed as open networks for transparency and inclusion to allow transactions to be recorded and viewed by the public. [...]any major systems changes should be tested and carefully studied before scaling up to other applications or entities. Furthermore, successful execution of a widespread blockchain system in DoD would require coordination among a sprawling set of stakeholders, including, at least, the Office of the Secretary of Defense and departmental leadership; each military department; DFAS; the Defense Logistics Agency; the Defense Information Systems Agency; other defense support agencies; Congress; Treasury; OMB; DoD OIG; GAO; and other regulators, overseers and auditors.