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Back to Square One
In a general way, Governance is the set of processes, customs, policies, laws and regulations that determine how a group, a community, or a company, for example, is conducted, managed, and/or controlled. The theme Governance is of great importance in the corporate world and has close relationship with blockchain technology. In this edition, we bring the article “How to manage complex governance arrangements from systems that do not depend on intermediaries to make the process more reliable? ”, published by the Institute of Technology and Society of Rio de Janeiro (ITS), written by Roxana Radu and Gabriel Aleixo, that addresses the use of blockchain in governance processes.

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Block News

Boehringer Ingelheim (Canada) partners with IBM to enhance the quality of clinical trialsTo enhance trust, transparency, patient safety and increase patient empowerment in clinical trials, pharmaceutical company Boehringer Ingelheim (Canada) has partnered with IBM. The primary goal of the project is to increase the quality of clinical trials and their storage, which currently have a large margin of error and can potentially put the patient at risk. Using IBM’s blockchain will provide decentralization of the structure, preserving data integrity, increasing transparency and enabling process automation, increasing patient safety and reducing costs. (COINDESK; 13.02.2019)

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Square’s CEO announces that Cash App will have integration with Lightning NetworkCash App is an application developed by Square that aims to facilitate cash transfers, enabling the use of a Visa debit card – known as Cash Card -, as well as ATM withdrawals or transfers to the bank of your choice. In addition to offering traditional currency transfer (fiat), the application started to allow the purchase and transfer of Bitcoins. As one of the problems of the blockchain network is the limitation in its scalability, the bet is to use the Lightning Network. Demonstrating optimism about the solution, Square’s CEO issued a statement stating that it is a matter of time before Lightning Network is integrated into the Cash App. (COINDESK,11.02.2019)

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JP Morgan will issue the first banking cryptoassetJP Morgan, one of the largest US banks, will issue the cryptoasset “JPM Coin”. Each JPM Coin will equal one dollar, working similarly to the stablecoins (explained here in our newsletter of 08.21.2018). Currently, the cryptoasset enables international payments. Even with the bank’s pronouncement, some scholars do not classify JPM Coin as a cryptoasset, but rather as a digital currency that makes use of blockchain technology. One of the arguments is that the JP Morgan token, in addition to being only for institutional clients, is programmed for internal transactions, unlike a usual cryptoasset, which everyone can use. Despite the doubt about its classification, other scholars argue that this step can mean the milestone for the beginning of the banking system of the future. (CNBC, 14.02.2019; THE NEXT WEB, 14.02.2019; MOTHERBOARD, 14.02.2019; CONSENSYS, 14.02.2019)

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Baidu launches platform for Decentralized Applications (Dapps)The Chinese company Baidu has announced the inauguration of the Baidu Blockchain Engine platform that will allow developers to produce applications on blockchain. The platform is based on artificial intelligence, Big Data and cloud computing, which allows consumers to explore and develop new solutions using blockchain technology. (COINDESK, 02.14.2019)

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Germany opens consultation process to exploit blockchain technologyBerlin is a major center for startup development, with a considerable part of it working with blockchain technology. In order to concretely enable the growing interest in the technology, the German government has opened a consultation process on how to exploit the potential of blockchain technology. (REUTERS; 18.02.2019)

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University of São Paulo receives support from Ripple for academic research focused on blockchain, cryptoassets and digital paymentsThe University of São Paulo (“USP”) has joined, as an academic partner, the University Blockchain Research Initiative (UBRI), a project led by Ripple, with the objective of promoting academic research on concepts and applications of blockchain technology, focused on the development of training materials, such as courses and events. The initiative will have an interdisciplinary team, bringing together researchers from the departments of Law, Economics, Mathematics, among others. In addition to USP, Fundação Getúlio Vargas is also a member of the initiative as an academic partner, according to information obtained on the initiative’s own site. (JORNAL DA USP, 11.02.2019)

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University of Michigan invests in cryptoeconomy-oriented fundThe University of Michigan has made an initial investment in the fund managed by Andreessen Horowitz: the CNK Fund I. The fund invests in companies that develop technology for blockchain networks in the early stages. (BLOOMBERG, 19.02.2019)

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U.S. Securities and Exchange Commission (“SEC”) is reviewing two new Bitcoin ETF proposalsAs reported in the newsletters of 08.21.2018, 12.11.2018 and 12.28.2018, the ETFs of cryptoassets are pending approval in the SEC. The first request was made by Startup SolidX jointly with the company VacEck and several others came next. In late 2018, SEC president Jay Clayton said that the approval of ETFs of cryptoassets depended on the end of market manipulation. Now, in early 2019, the requests made by VanEck / SolidX and Bitwise Asset Management (with NYSE Arca) started the 45-day countdown to the agency’s decision. (COINDESK, 20.02.2019)

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Blockchain Trend
In this edition, we introduce the Blockchain Trend section, with the aim of illustrating unusual intersections of blockchain technology with society. This section will be published whenever we identify the use of technology in commemorative landmarks or important social events, for example.

Considering the arrival of Carnival, this will be our first theme, which could not be better. The Carnival in Brazil – and especially in Rio de Janeiro – is internationally recognized for the parades of the “samba schools” in “Marquês de Sapucaí”. The Camarote Corporativo Incentivo Brasil, a cabin located in Sector 05 of Marquês de Sapucaí, will use as an official payment method the cryptoasset BestKoin, issued by BIT- Best Innovation Technology LLC of Dubai. According to the company, the partnership with the cabin in Sapucaí is worth for the next two years, at least. As one of the advantages of using cryptoasset as payment, the company highlights the exemption of the payment of fees charged for exchanging currencies with the exchange offices.

Still in the “samba school”, the Imperatriz Leopoldinense will have as the last wing of its parade a reference to Bitcoin. The theme (“samba-enredo”) of the school makes reference to the relation of the man with the money and the parade will be ended “speaking of a future already present through the cryptographic currencies”.

At the street carnival in São Paulo, Luís Hansen, who works in an artificial intelligence company, created the “Block Chain” (“Bloco Chain”, in Portuguese), which will parade on the carnival Tuesday. The event created on Facebook for the group has almost a thousand confirmations and about 6.5 thousand people interested.

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Blockchain Desk Recommends
One of Blockchain’s main features is security. In order to discuss the subject with regard to “hackability”, we recommend in this issue the article “Once hailed as unhackable, blockchains are now getting hacked”, by Mike Orcutt, that addresses in detail the subject.

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Blockchain Desk.