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Months ago, the U.S. Navy announced its search for private-sector partners to commercialize a blockchain-based security platform called PARANOID—short for Powerful Authentication Regime Applicable to Naval OFP Integrated Development. Developed by the Naval Air Warfare Center Aircraft Division (NAWCAD), PARANOID is designed to secure software development environments and verify the integrity of software throughout its lifecycle.
With growing concerns over cyber threats and software vulnerabilities in military applications, the Navy was seeking a commercial partner to build and expand PARANOID’s capabilities. Shortly afterwards, Veridat secured a Cooperative Research and Development Agreement (CRADA) with the Navy, officially becoming its strategic partner in further developing, integrating and commercializing the PARANOID platform.
“The Navy was looking for a commercialization partner to expand the reach of their initial framework for adoption in additional use cases, and it turns out, we were chosen to do that,” said Robert Huber, founder of Veridat. “We signed the CRADA with the Navy to co-develop PARANOID and bring it to a wide range of civilian use cases.”
Why the Navy needed a blockchain security solution
In today’s world, software underpins nearly every technology, including the Navy’s aircraft and defense systems. This reliance on software makes military assets vulnerable to cyberattacks, as attackers can exploit multiple entry points to manipulate or sabotage critical operations. To combat this risk, the U.S. Navy turned to blockchain technology as a solution, leading to the development of PARANOID, a platform that ensures software integrity by verifying that no unauthorized changes occur throughout the development lifecycle.
How PARANOID Works: Blockchain-powered software security
At its core, PARANOID functions as an immutable security log, tracking every step in a software development process. Each action—whether it’s writing, editing, compiling code, or making modifications in a digital environment—is recorded on the blockchain. This creates a transparent, unalterable history of the software’s development. This leaves a PARANOID user with an indestructible logbook that keeps track of who changed what and when.
When a software package is ready for deployment, the final product is compared against the blockchain records. If any unauthorized modifications are detected, the system flags the issue and prevents the software from being installed.
This approach ensures that companies, governments, and organizations can fully secure their development processes, fortifying their software against tampering. While this is critical in any industry that values security, it is especially crucial in military applications, where even minor software compromises can lead to catastrophic consequences.
Expanding Veridat capabilities through PARANOID
The Veridat integration of PARANOID enhances its capabilities, transitioning to a continuous, dynamic, real-time process monitoring. “Up to this point, we were taking snapshots,” said John Giantsidis, CEO of Veridat. “As we continue to work with the Navy developing our integration, our goal is to capture data in a way that is akin to taking video. This will create a continuous, dynamic, immutable record of any process or transaction.”
By shifting from isolated, static data points to a seamless, tamper-proof record, PARANOID could set a new standard for process cyber resiliency and data integrity.”
The future of PARANOID beyond military applications
While PARANOID was originally built for military defense, its potential applications extend far beyond that. Veridat sees an opportunity to commercialize the technology for any industry where authenticity and security are paramount. Industries such as luxury goods, supply chains, and artificial intelligence (AI) could benefit from PARANOID’s end-to-end verification capabilities. But Veridat is optimistic about its potential impact on AI security in particular.
“PARANOID could secure artificial intelligence training workflows,” added Huber. “It’s really about keeping infrastructure secure with accurate monitoring. Being able to do that with AI-based tools that are secured against malicious intrusion would be the gold standard.”
The black box problem in AI—the lack of transparency in how AI models make decisions—has become a growing concern. Many AI systems operate as opaque, unexplainable decision-making processes, even to their developers. By implementing an immutable, verifiable log, PARANOID could introduce much-needed transparency into AI model training and deployment.
A new standard in trust?
In today’s digital world, accomplishing complex tasks requires seamless integration of multiple systems, automation, and data-driven decision-making. However, as digital processes become more interconnected, they also become increasingly vulnerable to unauthorized changes, cyber threats, and data manipulation. Ensuring the integrity, authenticity, and security of digital transactions and workflows is critical to maintaining operational efficiency and trust. Organizations risk financial losses, reputational damage, and regulatory non-compliance without robust safeguards.
These factors increase the need for a comprehensive trust standard that would help establish verifiable and tamper-resistant processes to ensure that digital operations remain secure, transparent, and resilient in the face of evolving threats. According to Huber, this is especially important in AI, where a comprehensive trust standard is needed to safeguard AI integrity within and across systems.
“Our current development project with NAWCAD aims to generate the needed frameworks that can ensure that models function as intended, data remain tamper-proof, and decisions are explainable and auditable. Lacking such safeguards, AI systems could be exploited by fraud, misinformation, or other harmful activities, eroding confidence in AI-driven innovations across industries,” said Huber.
NAVAIR Public Release 2025-0291. Distribution A – “Approved for public release; distribution is unlimited.”
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