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Back to Square One
In our newsletter of August 6th,, 2018, we indicated in this same section a video teaching the concept of hash, mining and Merkle Tree, in which was also presented the concept of proof-of-work. In this issue, we bring a new video, with a didactic explanation about the origin of proof-of-work, some of the difficulties related to this method of consensus and a comparison with the proof-of-stake.

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Block News

BitPay, the largest payment platform in cryptoassets, reached the mark of US$1 billion in transactions in 2018 – Since 2011, the year of its creation, this is the second time that the company reaches such a landmark. Stephen Pair, CEO of BitPay, said that such results demonstrates the relevance of Bitcoin in solving real problems worldwide. The company stated that, in 2018, its revenue grew 225%. One of the factors for this result was the admission of new clients, as law firms, Data Center and IT professionals, who began to accept their payments in cryptoassets, as well as other possibilities of use, such as the payment of taxes with Bitcoin (as in the state of Ohio), wich contributed to the financial advance of the company. (PORTAL DO BITCOIN; 01.19.2019)

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The Port of Algeciras, in Spain, one of the most important in Europe, joins the blockchain platform – According to Cointelegraph, the Port Authority of the Bay of Algeciras (APBA) signed an agreement in which it will collaborate with IBM and Maersk, a giant of the maritime transport, on its platform Tradelens, based on blockchain technology developed by the two companies. The Spanish port is one of the 10 busiest ports in the world, receiving more than 70 million tons of cargo traffic per year. According to APBA, the platform will allow the exchange of information and documentation in a safer and more efficient way between partners in the supplychain. (COINTELEGRAPH; 01.21.2019)

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BNDES encourages startups with investment that can reach R$ 5 million – The Brazilian National Bank for Economic and Social Development (BNDES) created the “BNDES Garagem”, an initiative to support Brazilian startups seeking innovative solutions, and the blockchain technology is one of its focuses. The program, which seeks to develop and foster entrepreneurship in Brazil, is being conducted by the Wayra– LigaVentures Consortium and the selection of entrepreneurs will prioritize the proposals of health and welfare segments, social and environmental sustainability, creative economics, security, financial solutions and education. (BNDES website)

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Pennsylvania Department of Banking and Securities (DoBS) clarifies that Exchanges and service providers related to cryptoassets do not require a money transmission license to operate – According to the Department, bitcoins and other types of cryptoassets are not money, so transactions with these assets are not subject to the currency transaction rules. However, this understanding is not shared by some federal entities. In March 2018, the Financial Crimes Enforcement Network (FinCEN) said that an exchange that sells ICO coins or tokens, or exchanges them for other value that substitutes for currency would typically also be a money transmitter. (COINDESK; 01.23.2019)

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IBM and Ford work together in the first cobalt extraction screening project in Blockchain – The project, designed by IBM, LG Chen and Ford, will be developed in the Democratic Republic of Congo and will use the blockchain technology to record the entire cobalt supply chain. The goal is to curb the illegal extraction of the mineral, thus reducing the geopolitical conflicts of the region and the practice of child labor. The cobalt will be tracked from the mine extraction to the lithium battery factory, in China. From there, the products will be routed to the Ford plant in the United States. (REUTERS; 01.16.2019)

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Blockchain Desk Recommends
In this edition, we bring the article “Beyond the doomsday economics of ´proof-of-work´ in cryptocurrencies”, by Raphael Auer, published by the Bank for International Settlements (BIS), which brings an economic analysis of the way in which Bitcoin operates, criticizing the “proof-of-work” mechanism, especially in relation to the transactional cost.

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Blockchain Desk.