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Back to Square One
In our last newsletter (01.29.2019), we brought a video about the origin of proof-of-work and a comparison with proof-of-stake. In order to complement the analysis of the topic, we recommend in this edition the article “A (Short) Guide to Blockchain Consensus Protocols” published in Coindesk, which deals with the Consensus Protocol in general, addressing several consensus methods developed to the present.

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Block News
Know Your Transaction para stable coins – Chainalysis, a company that is considered a reference in compliance tools for the crypto market, has made available on 01.24.2019 an anti-money laundering protocol for cryptoassets, focused on stablecoins, called “Chainalysis Know Your Transaction – KYT”. The goal of KYT is to monitor all transactions made with the use of stablecoins, from issuance to redemption, and to enable identification of illegal uses of cryptoassets. (CISION-PR NEWSWIRE; 01.24.2019)

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Partnership between Harvard and Levi Strauss & Co to develop a blockchain project focused on workers’ health – The Harvard’s Public Health Graduate School, New America and the North American apparel company Levi Strauss & Co have announced a partnership to develop a system based on blockchain, in order to broaden the external audit on the health and safety of the workers of the Levi Strauss factories. The goal is to record the annual surveys answered by the company’s employees in the blockchain. According to Tomicah Tillemann, founder of New America’s Blockchain Trust Accelerator (BTA), it will be possible to provide a secure, standardized, auditable and transparent platform in which employee survey data can be aggregated and analyzed. According to Reuters, factories located in Mexico, which employ about 5,000 workers, will be the first to use the system in blockchain in the year 2019. (REUTERS, 01.24.2019)

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With the death of its CEO, QuadrigaCX, the largest Canadian exchange, loses access to $ 190 million in crypto – The death of Gerald Cotten, 30, has generated major problems for his exchange, QuadrigaCX. He was the only person allowed to transfer funds from the exchange wallet to its cold wallet, stored on a laptop. With the death of the CEO, the company’s transactions were frozen and all amounts deposited in the company’s cold wallet became inaccessible. As the widow of the CEO failed to unlock his computer, even with the help of professionals, the exchange saw no way out except to seek credit protection with the Supreme Court of Nova Scotia, the Canadian province. On 02.05.2019 Judge Michael Wood ordered the suspension of the filing of law suits related to the case for the next 30 days. (THE GUARDIAN, 04.02.2019; REUTERS, 05.02.2019)

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The Securities and Exchange Commission (SEC) seeks tools for data analysis of blockchain platforms – The SEC issued a public notice, to identify potential tools to provide data for analysis of the most commonly used cryptoassets’ blockchain platforms on the market. The goal is to monitor risks, improve compliance, and provide information about the agency’s policies regarding cryptoassets. One of the necessary requirements of the tool is the possibility of extracting and analyzing information correlated to the data recorded in the blockchain, such as identifying someone through a given address. (FEDERAL BUSINESS OPPORTUNITIES; 01.01.2019)

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Grin: “private” version of Bitcoin, inspired by the wizarding world – In July 2016, someone using the name Tom Elvis Jedusor (the true name of Lord Voldemort in French), posted a text describing the blockchain MimbleWimble, which, as opposed to Bitcoin, would “totally hide” the identity in transactions registered in the blockchain. Then, another (or the same) individual with the pseudonym Ignotus Peverell (another character of the franchise) released the cryptoasset Grin in the blockchain MimbleWimble. The initiatives, clearly inspired by the Harry Potter world, have the main objective of making blockchain transactions anonymous, so that the techniques for relating real-world people to virtual wallets and their connections are not effective. (MIT TECHONOLOGY REVIEW; 01.31.2019)

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IBM finalizes test of tracking shipment of oranges from China to Singapore using blockchain – Approximately twenty-eight tons of oranges that left China for Singapore were tracked using IBM’s blockchain. The Bill of Lading (“BL”) – document describing goods and transportation details, among other information – has been registered in blockchain. IBM created an electronic bill of lading (e-BL) that helped reduce and streamline the entire procedure due to automated document flow. (COINDESK, 02.01.2019)

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Facebook hires team involved in Chainspace, startup specialized in blockchain – Chainspace is building a decentralized system of smart contracts that can facilitate payments and other services, making use of blockchain technology. Facebook hired the team involved in the startup, giving hints that will intensify investments in blockchain. According to the news, in addition to the startup team, Facebook has hired academics, engineers and lawyers with blockchain experience. (CHEDDAR, 02.04.2019)

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Zcash finally announces that it has found a bug on its platform and that the problem has already been fixed – On 02.05.2019, eleven months after the discovery of a vulnerability in Zcash, an official statement was issued on the subject. According to the text released, the problem found allowed the creation of false Zcash, but did not affect the privacy of users. As informed by the network administrators, no action is required on the part of the cryptoasset holders. The platform decided to keep it secret until finding a solution, implemented on 10.28.2018 by means of an upgrade made in the network. (ZCASH, 02.05.2019)

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Blockchain Desk Recommends
In the words of Gerd Leonhard, author of the book “Technology Vs. Humanity”, data is the “new oil” and society’s most powerful weapon today. In recent years, we have seen a strong regulatory movement (GDPR in Europe and LGPD in Brazil are two clear examples) of the treatment and protection of personal data, with important consequences for blockchain technology. Considering this scenario, we recommend the article “Blockchain from a perspective of data protection law”, prepared by Deloitte, that analyzes the blockchain technology and its intersection with the General Data Protection Regulation (GDPR), European law of data protection.

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Blockchain Desk.