Welcome to the Government Blockchain Association (GBA) Meet Up May 15 th , 2017 Blockchain for Homeland Security, Defense and Law Enforcement
Agenda • Brief Review – What is blockchain and why is it important? • What are the defining characteristics of L.E., H.S. and Defense • What do L.E., DHS and DoD have in common? • What do criminals have in common? • Law enforcement update • Homeland security update • Defense update • Discussion
Government Blockchain Association (GBA) White Papers Working Groups Expertise/Knowledge Industry Government Research/ Conversations Surveys • Need help • /Conferences Show Me The $$ • Collab. Certification • /Collaborations Large/Small • Exposure • Education/ Inputs Training Citizens Citizens Opinion & Opinion Networking Enforce- ment Global Nonprofit Wide view Technology Ethics/Prudence Citizens Advocacy Forums • Standards Access • Annual Leadership Best Practice Neutrality • Pilots / Proofs of Concepts Summit Law Enforcement/Homeland Sec./Health Records/Prop. Rights/Convenience/Taxation/Benefits/Commerce/Intelligence
Government Blockchain Association (GBA) Course Catalog (future)
What is blockchain and a cryptocurrency? • A voluntary “value exchange system” that highly leverages: • Software and mobile devices • A community of participants • Digitally interconnected participants via infrastructure software (i.e., blockchain software over the Internet) • Cryptography (and non-repudiation) • Distributed ledger technology (DLT) • No need to trust the other party in the transaction • No need for third party validation and transaction management (and their delays and fees!) • Treated like a currency to some, treated like an commoditized asset , to others
An Ideal Use Case to Leverage Blockchain • Highly distributed application environment • Loose federation or purely voluntary participation (opt in/opt out) • High transaction frequency • A true need to increase security at all levels (i.e., trust model enhancement) • High need for fluidity and mobility (or at least one side of the dynamic) • A true need for a transactions or bilateral information + confirmation • Anonymity or brokered (permissioned) identity management is required
A Poor Use Case for Blockchain • An application that is not distributed • A very closed network of participants (proprietary) • Low quantity of transactions • High trust already exists (no deep need to enforcement) • Static actors and low need for fluidity or mobility • Pure one way transfer of information or data • Identity is not a big driver in the dynamics of the application
Investors Business Daily – Sat. Edition – May 13, 2017
From IBD, May 13, 2017 • Wireless carriers in a transition now • 4G has peaked… • They’re positioning for Next Generation, i.e., 5G • Will usher in a new bevy of services, enhancements upgrades, etc. • IoT, Machine-to-Machine, expected to play a big part • This represents multi-billion dollar mega evolution • Will take years…
US Federal Spend – to date….
LAW ENFORCEMENT Law Enforcement DLT, How Far Behind are we? Cryptocurrencies, blockchain • General acknowledgement that L.E. is a catch-up game; • There really are crimes being committed by criminals using blockchain-based netwks • “Indeed, the Department of Justice and other federal law enforcement agencies have a long history of adapting and evolving … law enforcement has had to evolve as new technology designed for legitimate purposes is used to facilitate criminal activity.” • Jason Weinstein, Steptoe and Johnson, Attorneys at Law, W.D.C.
• Cryptocurrencies are used by criminals to commit crimes or hold data hostage … and want to be paid in cryptocurrency • 75% of cases bitcoin is the currency of choice • During 2016, DHS funded the dev. of a bitcoin analysis tool specifically aimed at detecting and mitigating ransomware (see next slide) • Internet Crime Complaint Center (IC3) cataloging $275M in losses during 2015 (of these kind) • Combination of blockchain and “old school” investigation protocols
FBI… continued • Collaboration between and among other federal agencies – Treasury, state police, secret service, etc. • Private sector collaboration as well • Battaglia said "the fact that everything is recorded in a public ledger that’s permanent and not modifiable is very good from an evidence collection perspective". • Speaking from the audience at the event, Kramer said that the FBI recognizes the old days of getting "access to content " through wiretaps are largely over .
L.E. agencies getting smarter
Law Enforcement Tools for Investigations • Chainalysis – New York, software dev. company… • BitCluster – determines if transactions are from the same source • Elliptic (Partnering with Internet Watch Foundation) to fight child pornography … both are based in London. • These and others are helping to… • Legitimize the use of cryptocurrencies • Use Collaboration as a very positive approach • See www.bitcoin.com
• Danish law enforcement have arrested drug traffickers after an investigation that included surveilling the blockchain, according to the regional publication Berlingske . The Danish police’s cyber crime unit NC3 claim they have made arrests based on criminal activity tracked via bitcoin transactions.
HOMELAND SECURITY
DHS Writing Software to Analyze Code • DHS S&T /HSARPA paid Sandia National Lab to write application • Software tool for analyzing & investigating Bitcoin transactions • Combines multiple investigative tools and “good ol’ fashioned detective work” • May be duplicative to COTS products -- • Chainalysis • Skry • Elliptic (based in London)
DHS S&T Program for Innovation • The contract is part of DHS’ Silicon Valley Innovation Program (SVIP) Other Transaction Solicitation (OTS), which aims to bring small, innovative companies that haven’t contracted with the federal government into the government contracting space. • Launched in 2015 • Intended to familiarize firms w/DHS Mission and points of focus • Leverages commercial investments (additively) • FOCUS: IT, finance, energy, health, first responders
SVIP Continued • The SVIP is expanding DHS’s reach to find new technologies that strengthen national security with the goal of reshaping how government, entrepreneurs and industry work together to find cutting-edge solutions. • DHS is reaching out to Silicon Valley and all of the innovation communities across the nation to harness the commercial R&D ecosystem for government applications, co-invest in ideas and accelerate transition-to-market.
Call To Action for GBA Members:
DHS Follow Up Contracting Office Address: Office of the Chief Procurement Officer Washington, District of Columbia 20528 Place of Performance: See OTS Washington , District of Columbia 20005 Primary Point of Contact.: DHS-Silicon-Valley DHS-Silicon-Valley@hq.dhs.gov Secondary Point of Contact: Aaron H. Ford, Procuring Contracting Officer Aaron.Ford@hq.dhs.gov Phone: 202-254-6302
• Testing for Camera usage at ports of entry, including borders and airports • Goal: detect & stop intruders who may try to manipulate the data being collected
Former CIA Technologist, OPINION • Critics of Silicon Valley from the national-security Yaya J. Fanusie community charge that technology is enabling terrorists to operate undetected. • This same technological knowhow, however, could help the intelligence community thwart those plotting against us and our allies. • Silicon Valley has become renowned for innovation, but it could one day become a byword for something even more important: keeping America and the world safe. Yaya J. Fanusie is director of analysis for the Foundation for Defense of Democracies’ Center on Sanctions and Illicit Finance and co-founder of the mobile startup ICmed, LLC. Prior to this, Yaya spent seven years as both an economic and counterterrorism analyst in the Central Intelligence Agency.
DoD FY 17 Budget Submission (2/16) • Exhibit R-2, RDT&E Budget Item Justification, DEFENSE • Published: Feb. 2016 (vol 3, page 212) • PEN 0603122D8Z / Combating Terrorism Technology Support: • “This effort will develop statistical models using near real time Blockchain data to determine the probability that a Bitcoin transaction is associated with illicit activities.” • “Phone and walk-in based reporting fail to incorporate the potential to dramatically increase the volume, information security, and quality of reporting possible through crowdsourcing applications, particularly when combined with the micro-payment processing breakthrough afforded by Blockchain technology.”
NATO Comm. And Infor. Agency
NATO 2016 Cyber Innovation Blockchain as part of an integrated solution is much more interesting to military organizations! https://www.ncia.nato.int/NewsRoom/Pages/160425_Innovation.aspx
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