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Blockchain technology has enabled the development of several applications, such as the creation of cryptoassets and decentralized apps (DApps). An essential element for some of these innovations is the so-called “Smart Contract”, concept introduced in the 90s by Nick Szabo. In this edition, we bring to you the guide “What Are Smart Contracts? Guide For Beginners”, published by Cointelegraph, which addresses some of the key features and applications of Smart Contracts.

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The Brazilian Securities and Exchange Commission (CVM) authorizes the indirect investment in Cryptoassets by investment funds – At the beginning of the year, the CVM, through the Directive Release No. 01/2018, prohibited the direct purchase of Cryptoassets by investment funds regulated by the CVM Instruction No. 555/14 (IN 555). In the CVM’s view, the Cryptoassets “cannot be qualified as financial assets”; therefore, its direct acquisition would not be allowed. However, on 09.19.2018, the CVM published the Directive Release No. 11/2018, concluding that the IN 555 “authorizes indirect investment in Cryptoassets by means, for example, of the acquisition of shares and derivatives, among other assets traded in third Jurisdictions, provided that they are admitted and regulated in those markets”. In the Directive Release, the independent governmental agency lists some cautions that must be adopted by the managers and administrators of the funds in such operations. (CVM; 09.19.2018)

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Judge of the 12th Civil Court of São Paulo (TJSP) grants injunction for reopening of an exchange account at Banco Bradesco – As published in our newsletters of 06.08.2018, 21.08.2018 and 17.09.2018, the discussion on the possibility of unilateral closure, by the banks, of the accounts of cryptoassets exchanges is on the agenda, both on the Superior Court of Justice (STJ) and the Administrative Council of Economic Defense (CADE)-, . On 09.12.2018, a TJSP judge granted an injunction for the reopening of Braziliex’s account at Bradesco, with the view that the bank closed unilaterally the account only four days after the Exchange notification. According to the injunction, there would be “sufficient evidence that the termination of the current account, by the defendant [Bradesco], would be carried out without the granting of reasonable time to the author for adopting measures that he understood pertinent, causing him surprise” (JOTA 09.24.2018)

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Exchanges react to the “Virtual Markets – Integrity initiative” report by the New York Attorney general’s office – On 09.18.2018, the New York State Attorney General published the report of the “Virtual Markets – Integrity Initiative”Virtual Markets – Integrity Initiative”, which analyzed the data provided by the major cryptoassets exchanges, provided in response to letters and questionnaires sent by the Office of the Attorney General. One of the exchanges that questioned the report was Coinbase, denying that 20 percent of executed volume on its platform were for its benefit on a proprietary basis. (OFFICE OF THE NEW YORK STATE; 18.09.2018; COINDESK; 20.09.2018)

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PNC will begin to use Ripple Network to process international payments from its customers – Ripple announced, on 09.19.2018, that PNC, one of the largest U.S. financial institutions, is going to use its blockchain network to process international payments. According to the announcement, PNC will use the xCurrent, which will allow the execution of instant payments. Also in September, a demonstration of the conversion of XRP (Ripple network token) to Yen in an ATM in Japan was released. (COINTELEGRAPH; 23.09.2018; RIPPLECOINNEWS; 24.09.2018)

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Developers of Bitcoin Core announced that a bug could have broken Bitcoin – One of the advantages of blockchain technology is its security, especially because of the difficulty of hacking. Bitcoin, as the first blockchain network and due to the market value of its cryptocurrency, is the main target of hackers. Recently, the developers of Bitcoin Core released a new version of the software, after identifying a bug in early versions. According to the information disclosed, such bug in the Bitcoin Core could have affected the blockchain network of bitcoin. (MOTHERBOARD; 19.09.2018)

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Walmart’s greens vendors will have to register in its Blockchain – Since last year, Walmart Inc. has been testing the Blockchain “IBM Food Trust” to improve the monitoring of its supply chain. Now, Walmart has determined that all its suppliers of lettuce, spinach and other greens must join its blockchain by 01.31.2019.The use of the technology will allow better traceability of the products, with a complete view of the supply chain, increasing the speed and accuracy in any necessary corrections, with direct impact on the improvement of the quality of the products and in the Public Health (THE WALL STREET JOURNAL; 09.24.2018).

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Blockchain Desk Recommends
When the subject is blockchain and energy, the most common approach is the discussion about the high energy consumption in the “mining” processes of some cryptoassets, especially Bitcoin. However, there are other interactions that are much more interesting between the two themes. Last year, the MIT Technology Review published the article “How Blockchain Could Give Us a Smarter Energy Grid”, by Mike Orcutt, which explores the use of technology to improve the management of an intelligent energy network (smart grids), increasing its efficiency.

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Blockchain Desk