Source: Cointelegraph Original: "{title}"
Author: Ismael Hishon-Rezaizadeh, Co-founder and CEO of Lagrange
In the current geopolitical realignment, trade wars and proxy wars are underway, but the next phase of competition will not be decided through tariffs or drones. It will be determined by who leads in the field of cryptography.
Just as past industrial and technological revolutions provided the United States with a global power advantage through its private sector, the ability to protect and verify information through breakthroughs in cryptography, particularly zero-knowledge proofs, will determine the balance of power in the digital age.
The United States faces the risk of falling behind. While China and other countries actively invest in technological advancements, the U.S. lacks a national strategy to maintain its leadership in this critical area. It is time to view cryptography as a foundational technological asset and a key to ensuring the future of national economic and security interests.
During the world wars of the last century, the United States maintained global dominance through industrial strength. The country supplied about 75% of the oil used by the Allies in World War I and approximately 85% of the oil used by the Allies in World War II. The U.S. also manufactured about two-thirds of all military equipment used by the Allies in the latter, playing a crucial role in the outcome of the war.
Industrial strength is not just an asset; it is a strategic advantage in global conflicts. U.S. influence will continue to be linked to innovation in the private sector, especially as we enter more technologically advanced forms of warfare.
The most effective way to maintain U.S. leadership globally is through software superiority. Stuxnet is a recent example in history. In 2010, a software operation led by the U.S. and Israeli governments was able to remotely destroy Iran's nuclear development program without deploying a single soldier.
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Today's private companies have followed suit, developing new software technologies for national defense purposes that have become crucial in maintaining U.S. competitive advantage. Defense contractors enhance America's global influence through their contributions to artificial intelligence, surveillance, and advanced analytics for national security purposes.
As cryptography begins to play an increasingly important role in defense technology, this historical trend will continue.
The use cases for cryptography, especially zero-knowledge proofs, extend far beyond protecting financial transactions. Consider shifting the focus away from the AI race. In this context, zero-knowledge proofs become essential for more direct practical purposes, such as protecting the nation's digital infrastructure.
The U.S. Advanced Research Projects Agency and the Department of Defense have recognized the strategic importance of zero-knowledge proofs in defense and national security and have developed the Secure Information Verification and Evaluation (SIEVE) program.
NASA and the European Space Agency are exploring blockchain and zero-knowledge proofs to ensure the authenticity of satellite communication commands and prevent cyberattacks.
Contributions from the private sector are embedding secure cryptographic elements into drones to prevent hacking and ensure the operation of secure defenses and critical infrastructure. Meanwhile, cybersecurity companies are leveraging blockchain to create secure digital identity ecosystems.
The private sector is currently at the forefront of innovation in this field. In 2019, there was a surge of research papers on zero-knowledge proof technology, primarily driven by the private sector, aimed at finding better solutions for blockchain scalability through zero-knowledge rollups (ZK-rollups).
New and innovative methods of zero-knowledge proofs are emerging, with most research led and funded by private sector crypto companies. These are production-ready, future-oriented technologies entering civilian applications but can be equally swiftly applied for military purposes.
The vitality of the United States in the digital age, particularly in cryptography and blockchain technology, will define its future role as a global power. The U.S. must make bold strategic investments in research and development in both the private and public sectors to maintain its leadership in cryptographic technologies, which are now critical to national security, defense, and economic stability.
With the emergence of pro-cryptocurrency governments and supportive Congress members, it is time to move beyond merely viewing cryptocurrencies as an investment category. There must be active nurturing and support for innovation in cryptography and emerging technologies like zero-knowledge proofs. The centuries-old relationship between the private sector and government must continue to defend national interests.
This is the moment for the United States to establish a new wave of industrial and technological dominance. It is time to seize this opportunity to ensure that the global leadership of the next century is driven by American innovation.
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