America’s new government is studying ways to make its future operations more efficient but both the public and private sectors can benefit from enterprise blockchain technology solutions that are available in the here and now.
An executive order issued by President Trump says the Elon Musk-led Department of Government Efficiency (DOGE) has been given until July 4, 2026 to recommend ways to modernize “federal technology and software to maximize governmental efficiency and productivity.”
This is a more narrow focus for DOGE than originally envisioned, but it makes sense given Musk’s background as a tech titan with an interest in blockchain technology. DOGE is now reportedly exploring how blockchain might help improve the federal bureaucracy.
Musk is said to have had talks with representatives of several public blockchains (no names provided). Transparency in federal spending, payment systems, securing data and property management are reportedly among the potential areas in which blockchain tech might be applied.
DOGE issued a public call for suggestions on how they should proceed, and I think considering blockchain’s role is a good idea. But I would caution them to consider each blockchain’s capacity to do what it claims, because ‘efficiency’ requires both capability and reliability.
For instance, the two Trump family memecoins were released on Solana, a network with a reputation for having to shut down and reboot when traffic gets too demanding. The Trump coin volume nearly sank Solana again, but it just managed to avoid flicking the on-off switch. This time.
In my opinion, priority should be given to blockchains that are not only more robust but which prioritize utility over financial speculation; blockchains that are already offering the kind of efficiency solutions DOGE wants to achieve.
Take the inefficiencies plaguing the supply chain. In the UK alone, £12 billion of revenue is lost annually to these inefficiencies. The global figure is obviously many multiples of that. Those wasted billions can and should be reclaimed and reallocated to more productive uses.
Blockchain solutions exist to verify data quickly and accurately across multiple touchpoints. Networks capable of handling both the volume of transactions and the reams of data that global shipping demands are already deploying these solutions.
Trust will be increased due to inalterable record-keeping (which applies to all data needs, not just supply chains). Compliance costs will come down because transactions will be both secure and auditable. Fraud is reduced by making every step along a product’s journey visible and verifiable.
As for DOGE’s reported interested in blockchain-based payments, efficiency must walk hand in hand with economy. A blockchain-based system needs to be capable of handling significant transaction volume at fee levels that don’t match or even exceed current costs.
DOGE says it will be public about its plans, and transparency is the hallmark of public blockchains. But if efficiency is the goal, pick the blockchain that can handle the job NOW, not a blockchain that merely has aspirations to achieve this capacity and durability three iterations down the road.
If anyone at DOGE is interested in discussing this further, let’s talk.
Calvin Ayre
Jan 27, 2025
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