The People’s Liberation Army could soon be rewarding its soldiers’ good performance with cryptocurrency tokens if China’s military brass embrace blockchain technology, according to a military newspaper.
Applying the technology to military management would likely spur innovation, the PLA Daily, a military mouthpiece, stated.
The paper said the military should establish a digital currency token reward scheme for staff performance assessments based on criteria including training, speciality skills and task completion, the South China Morning Post reported.
“To award or deduct tokens according to one’s daily performance and thus generate an objective assessment would effectively energize the human resource management,” it said.
Thie article was published a few weeks after President Xi Jinping spoke positively about blockchain technology, which sparked a price surge in the cryptocurrency market and boosted related company shares.
In a group study session on blockchain with other senior Communist Party leaders, Xi called for accelerated development of the technology and an increase in investment in the sector.
“More efforts should be made to strengthen basic research and boost innovation capacity to help China gain an edge in theories, innovation and industries of the emerging field,” Xi said.
Central government departments have been quick to respond, exploring possible applications including anti-corruption measures.
Blockchain is a system of decentralized encrypted digital ledgers that are unalterable by design, making them impossible to copy.
The chain grows as each new transaction is recorded, with records of previous transactions retained for verification purposes. Its characteristics could make it highly useful in situations where tracking records and trustworthiness is required.
“Blockchain technology solved the problem of traditional digital data being vulnerable to tampering or hacking and lack of credibility,” the PLA Daily article said.
The paper examined the possible military uses of the revolutionary technology. Applications could include storing military secrets on embedded blockchains with high-level encryption, so that they can be distributed but not copied, significantly improving intelligence security.
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Another possible application could be an electronic shooting range that automatically detects markings on a target and produces blockchain records for each trainee, “in order to maximize the authenticity of training results.”
Citizens could even pledge their loyalty to the Communist Party of China on blockchain, the article said, adding: “It provides a technological guarantee to clean and open training and examination.”