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Back to Square One
The difference between utility and security tokens has been the subjectof debateby enthusiasts about the study of Blockchain and cryptoassets. For a better understanding of the discusion, we recommend the article “Security Tokens vs. Utility Tokens — How different are they?”, which explains, in a simple and clear way, the main differences between both types of tokens.

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Block News
News released about the Facebook’s project involving Blockchain – In previous editions of our newsletter (02.12.2019 and 03.27.2019), we informed that Facebook was hiring blockchain specialists to, as all indicated, the development of a cryptoassets to WhatsApp users (as noticed in the newsletter of 03.12.2019). Recently, it was announced that the platform wants to launch, at the beginning of 2020, the cryptoasset GlobalCoin, was announced that the platform wants to launch, at the beginning of 2020, the cryptoasset GlobalCoin

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Agencies points toregulate exchanges and cryptoassets – At the end of May, the Financial Action Task Force (FAFT) indicated, atthe Private Sector Consultative Forum, that it is finalizing the parameters which exchanges will have to adopt. The recommendations of FAFT aren’t biding, but the countries that do not obey them are likely to suffer restrictions in the global economy. (COINDESK; 05.20.2019)

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Telegram starts the tests of Telegram Open Network (TON) blockchain – At the end of last month, Telegram published files and instruction manualsso its users could test their blockchain net, the TON. According to the company, TON allows itsusers to create smart contracts, and its token works asa payment token. One of the company’s goals is to bring together the technology and the general public. (LEDGER INSIGHTS; 29.05.2019)

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Salesforce wants to popularize the use of the Blockchain technology – At the conference TrailheadX, the Salesforce announced and demonstrated the Salesforce Blockchain, a solution that use the technology to create “networks of trust”. The solution aims to uncomplicate the use oftechnology by the general public. The idea is that the clients could develop networks in blockchain without any complex programming. In the conference, the company announced that it already has clients using the product, as the Arizona State University – to verify information such as records and grades – and the S&P Global Ratings – to reduce time spent with revisions and approval of new bank accounts(ÉPOCA NEGÓCIOS; 05.29.2019).

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EDP Brazil and Accenture start a partnership to develop new solutions to the electric sector with the use of blockchain – With the creation of the Smart Energy Lab, EDP Brazil and Accenture started a partnership to innovate in the Brazilian electric sector. One of the goals of the partnership is the use of blockchain technology to upgrade the solar energy sector efficiency. Recife, a important city in the northeast of Brazil,will be the base of the initiative, but other tests will occur in the Accenture’s headquarterin São Paulo. (28.05.2019, CRIPTOFACIL)

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Blockchain Desk Indica
In May, the Financial Crimes Enforcement Network (FinCEN), department of the North-American government responsible for combating money laundering and terrorist financing, published the FinCEN Guidance FIN – 2019- G001, a guide to applythe Bank Secrecy Act (BSA) to companies that transact with convertible virtual currencies, including cryptoassets. In this edition, we recommend its careful reading.

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Blockchain Desk.

Welcome to Blockchain Descomplicada!

We hope you enjoy our newsletter! Give us your opinion by clicking here. Your feedback is very important for the improvement of the newsletter!

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Back to Square One
With the advance of new technologies and its increasing use by the world’s population, we are facing an unprecedented generation of data. This phenomenon brought concepts like “big data”, the analysis and interpretation of large volumes of data, structured or unstructured. Whereas blockchain is, in essence, a distributed database, there is a clear intersection between this technology and big data. In this edition, we suggest the article “How Blockchain Will Disrupt Data Science: 5 Blockchain Use Cases in Big Data”, by Salih Sarıkaya, which addresses the relationship between the two themes, in a direct and simple way.

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Block News
The Central Banks of Canada and Singapore made their first swap of digital currencies through Blockchain technology – On a joint statement, the Bank of Canada (BoC) and the Monetary Authority of Singapore (MAS) announced the achievement of their first foreign exchange swap, between central banks, of digital currency using Blockchain technology. Through the connection between the autonomous projects of each country (Jasper Project, from Canada, and Ubin Project, from Singapore), the two countries have cooperated in use of distributed technology to make the international payment process more cheap, fast and secure. According to Sopnendu Mohanty, Chief Executive of MAS, the union of these projects has approached several technical issues and taken the technology to a higher level of maturity. (BLOOMBERG, 05.02.2019)

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Starbucks will track coffee using Blockchain technology – Starbucks, the coffeeshop network, is working with Microsoft to prepare its “Azure Blockchain Service”, designed to track their shipping of coffee around the globe, ensuring traceability in real time. With the partnership, Microsoft blockchain will register all changes along the transportation, providing a more complete view of the supply chain. Based on such data, Starbucks will update the application, allowing its customers to have access to information on the production of coffee beans and evaluate them. The project also aims to help farmers, by granting them the verification of location from their final coffee bean customer. (COINDESK; 05.07.2019)

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The United States intends to combine 5G, Blockchain technology and Artificial Intelligence – Targeting at a revolution in wireless technology speed, the Federal Communication Commission of the United States (USFCC) plans to combine 5G, Blockchain and Artificial Intelligence and, thus, overcome their biggest rival, China. According to Jessica Rosenworcel, USFCC Commissioner, the combination of Blockchain with Artificial Intelligence (AI) will allow the wireless spectrum to have a more dynamic and flexible function, in order to allow the connection of billions of devices to the 5G network at the same time. In the U.S., in China and in other countries it is already common the use of AI for the advance of wireless technology, but it has not yet been possible to use the 5G in this equation. (MIT TECHNOLOGY REVIEW; 05.07.2019)

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Microsoft releases an identity tool built in the Bitcoin Blockchain – Microsoft announced the Ion project, a decentralized identity solution based on the Bitcoin blockchain. The Microsoft identity infrastructure is the first created directly on the Bitcoin blockchain. An anonymous source informed CoinDesk that the Ion will pass from the test network to the main network of Bitcoin by the end of this year. (COINDESK; 05.13.2019)

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A partnership between big retailers and Blockchain platforms enables payment of products via crypto – Flexa, a payment startup, and Gemini, the Winklevoss brothers’ company, partnered with the objective that big retailers accept payments via cryptoassets. The payment is made via mobile consumer application, that transfer cryptoassets from the app or the virtual wallets to the store by simply reading the code that appears in the mobile. According to the CEO of Flexa, Tyler Spalding, the adoption of this form of payment is a great alternative in comparison with existing methods, taking into account the fees paid to the existing payment networks. (FORTUNE; 05.13.2019)

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Blockchain Desk Recommends
Over the past few years, the cryptoeconomics has grown significantly and everyday some billion dollars in transactions are processed. To map where the cryptoassets operators are spread around the world, the DataLight published the study “How are crypto traders distributed across the globe?”, which here we indicate.

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Blockchain Desk.

Welcome to Blockchain Descomplicada!

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Back to Square One
Blockchain technology gains market space every day. Several technology companies that already offered their products in the SaaS (software as a service) model, began to commercialize the BaaS (blockchain as a service). In this edition, we bring the article “The Rise and Rise of Blockchain as a Service”, by Aran Davies, which explains the trend and lists some companies that already offer the BaaS to the market.

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Block News
Brazilian biotechnology company initiates project for DNA mapping of BraziliansOn 04.25.2019, during StarSe’s HealthTech Conference, the biotechnology company Portunus announced the “Cores do Brasil” Project, which will map the DNA of the Brazilian citizens. According to Portunus, the objective is to identify, genetically, the ancestry and miscigenation of the country, tracing a genetic map of the citizens. The data collected in the project will be stored in the GenoBank blockchain, which is specialized in DNA. The chosen blockchain has the premise that the participants are the owners of their own data, and can even monetize them. (STARSE; 04.29.2019)

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Chinese Internet Court employs artificial intelligence and blockchain to render decisions At the 2019 Forum on China Intellectual Property Protection, Zhang Wen, the president of the Beijing Internet Court, stated that it employs artificial intelligence and blockchain to render decisions. Zhang also stated that “of the 41 cases concluded [with blockchain technology] until now, in 40 (with evidence recorded in blockchain), the parties preferred to make extrajudicial agreements to litigate.” The Court’s position is in line with the decision rendered in September last year by the Chinese Supreme Court, which judged valid proofs verified or recorded in blockchain. (COINTELEGRAPH; 04.25.2019)

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Hackers attack Microsoft software for the purpose of stealing cryptoassets In the beginning of April, Motherboard reported that an attack to the Outlook, from Microsoft, allowed hackers to access the content of its users’ emails. According to Motherboard, the victims believe that the attack aimed to empty their wallets of cryptoassets by the following method: with access to e-mails, the hackers were able to check in which accounts they held cryptoassets (analyzing the confirmation e-mails from exchanges), access these accounts, request new password before the exchange and see the email with the link to generate a new password, getting access to the wallets by changing the users password. Interesting to note that there was no security breach in the Blockchain technology itself, but rather the discovery of a way to obtain the wallets passwords through the weaknesses of other softwares. (MOTHERBOARD, 04.29.2019)

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Lightning Labs launches a desktop application for the Bitcoin platform As reported in the newsletter of 02.27.2019 , the Lightning Network, from Lightning Labs, is the stake to solve the scalability limitation of the Bitcoin blockchain. In April, the company launched the desktop application which is integrated into Bitcoin blockchain. In April, the company launched the desktop application which is integrated into Bitcoin blockchain. The application works on MacOS, Windows, and Linux. According to Coindesk, the Lightning Labs is preparing to launch the application version for smartphones in the future. (COINDESK; 04.23.2019)

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Washington State recognizes records made in blockchain as evidence valid and feasible for Court The State of Washington approved on 04.26.2019 the Law no. 5638/2019, that recognizes and protects the legal status of electronic records made in distributed records, as the blockchain network. The law will enter into force at the end of July of this year. The new law also defines the terms “blockchain” and “distributed record”. (COINTELEGRAPH; 05.02.2019)

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Carrefour launches the use of blockchain for tracking food in Brazil The Carrefour supermarket launched its first line of products with the use of blockchain in the State of São Paulo, in partnership with Safe Trace. The technology aims to track, initially, the Suíno Sabor & Qualidade food line. Therefore, consumers will be able to access detailed information about the steps of production and distribution of foods, such as batch number, livestock farming, animal nutrition and among other information. (ÉPOCA NEGÓCIOS; 04.23.2019)

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Blockchain Desk Indica
On May 07th, the Normative Ruling RFB No. 1888/2019 (NR) , issued by the Brazilian Federal Revenue, which creates the obligation to provide information concerning transactions involving cryptoassets. The Normative Ruling statement is a result of the previous Public Consultation RFB nº 06/18 , finished in 11.19.2018. The NR final text brings several changes with respect to what was submitted on the Public Consultation. Both crypto exchanges and individuals or legal entities are obliged to provide information, and the first set of data shall be delivered in September 2019, relating to operations carried out in August 2019. Finally, the rule sets forth penalties for failure, delay or inaccuracy in information provision. There are some sensitive points that certainly will be an object of future discussions, especially regarding your legality and its effects on the development of the crypto economy in Brazil. In order to assist the analysis of the Normative Ruling, we prepared a comparison between the writing of the draft published on the public consultation and the final version. To access, click here.

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Blockchain Desk.

Welcome to Blockchain Descomplicada!

We hope you enjoy our newsletter! Give us your opinion by clicking here. Your feedback is very important for the improvement of the newsletter!

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Back to Square One
Originally, sidechains were developed to solve problems related to blockchains, such as the scalability. They work as “extensions” of a main blockchain, increasing its main function by providing the validation of the information more rapidly. Due to its innovative potential, we bring, on this issue, an article that illustrates, in a didactic way, the concept, main features and functions of sidechains.

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Block News
New bill of law to regulate cryptoassets in Brazil is presented in the House of RepresentativesOn 04.04.2019, congressman Aureo Ribeiro (SOLIDARIDADE-RJ), submitted to the House of Representatives a new bill of law (no. 2,060/2019), aiming to determine the legal regime of cryptoassets as well as criminalize their fraudulent use, including increased penalties for cases of “pyramid scheme”. The new bill of law has a different approach from the first bill presented by the same congressman (PL nº 2.303/2015), which included the cryptoassets in the definition of “payment arrangements, under the supervision of the Central Bank”. (CONJUR, 04.10.2019; CRIPTOMOEDAS fácil, 04.14.2019)

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The National Civil Aviation Agency (ANAC) authorizes the use of blockchain technology in its activities Through Resolution No. 511, published on 04.11.2019, ANAC authorized the use of blockchain Resolution No. 511, published on 04.11.2019, ANAC authorized the use of blockchain to record information on civil aviation in Brazil. As reported by the Bitcoin Portal, “[t]he old rule that dealt with data authentication, public and private keys, hashing and asymmetric digital encryption, now includes Blockchain as a way to guarantee the immutability of the information registered within the agency”. The registration of the information in Blockchain will have to follow the guidelines of the Information Technology Superintendence (STI) of ANAC, which will be drafted by ANAC after public consultations, as pointed out by Article 1 of the Resolution. (PORTAL DO BITCOIN, 04.12.2019; DIÁRIO OFICIAL DA UNIÃO, 04.12.2019)

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Blockstack announces Security Token Offering (STO) under Securities and Exchange Comission (SECs) A+ regulation to enable decentralized Internet In 2017, Blockstack, a company that develops software with blockchain technology, announced that it would create a decentralized internet infrastructure. Recently, in April 2019, the company said that it plans to raise about 50 million US dollars with an STO using the A + Regulation of the SEC. This procedure is more flexible than an IPO, for example, and will occur through the subsidiary Blockstack Token LLC that will issue the token Blockstack Stacks. (COINDESK; 04.11.2019)

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Coinbase launches debit card that enables the payment of products and services with cryptoassets Exchange Coinbase has placed on the UK market the debit card named Coinbase Card, which aims to enable payment with cryptoassets. The card uses the VISA system that synchronizes directly with the user account in the Coinbases system. Suppliers of products and services will not receive payment in cryptoassets, as Coinbase will convert the crypto in currency before transferring the value to the supplier. (CNBC; 04.10.2019)

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International Chamber of Commerce (ICC) starts partnership with startup for blockchain use ICC is an international non-governmental organization that works to promote and advise international trade and globalization and is one of the world’s leading centers for dispute resolution. In order to promote the use of technology by all industry sectors, ICC has partnered with the startup Perlin to create a group called “ICC Blockchain / DLT Alliance”, a reference to distributed registration technology. In the initial phase, the partnership will focus on the traceability of the production chain and the simplification of international transfers. The ICC will connect Perlin with several companies in the market, and name it as an official technology partner, with free access to the Perlin platform during the initial phase of the project. (FORBES; 04.10.2019)

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France will try to boost regulation of cryptoassets in the European Union After the approval by the French Parliament of a bill of law for the issuance and sale of cryptoassets devices on French territory, France begins a campaign to persuade the European Union to adopt a unified regulatory framework in line with the French one. The law passed by the French Parliament allows the issuance and commercialization of cryptoassets, provided that a certificate issued by the French Financial Market Regulator is obtained. One of the consequences is that issuers, traders, custodians and investors will pay taxes on any gains obtained. (REUTERS; 04.15.2019)

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Blockchain Desk Indica
In this issue, we bring the article “Token Taxonomy Act of 2019: The Digital Token Exclusion”, written by Grant Gulovsen, which analyzes in detail the bill of law known as the “Token Taxonomy Act of 2019”, which proposes changes in US securities legislation and the tax regime applicable to cryptoassets.

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We hope you enjoy our newsletter! Give us your opinion by clicking here. Your feedback is very important for the improvement of the newsletter!

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Back to Square One
In recent years, especially over 2017, the Initial Coin offerings (ICOs) were one of the most related topics to blockchain technology in the media. Recently, the discussion on the subject began to consider a broader classification of “ICOs”, depending on the type of token or structure adopted – Initial currency offer (ICO), Initial Token Offering (ITO), Securities Token Offering (STO), Consumer Token Offering (CTO), among others. In order to contribute to the debate, we bring in this edition the overview da ICO Finch, which discusses the basic differences between a STO and an ICO, in a simple way.

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Block News
Most exchanges do not possess proper verification and customer identification policiesCoindesk obtained exclusive access to a study by the startup Coinfirm on Know-your-customer (KYC) of the exchanges. About 126 exchanges were analyzed and 69% of them did not have a complete and transparent KYC policy. In addition, only 26% were classified as having a high level of Anti-money Laundering (AML) policies. (COINDESK; 03.2.2019)

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Default in Brazil in the insurance sector can be reduced with the use of Blockchain According to the article published in Valor Economico, the technology is being used in the insurance industry in order to reduce costs and achieve greater accuracy in risk analysis. Seguros Sura, a company of the sector, has been using the technology since 2017 through smart contracts, sending bills, endorsements and policies. According to the company’s president announcement, the technology reduced by 20% the default in all product lines offered, in addition to a 32% reduction in the reissuance of collection documents, bonds, slips and endorsements. (VALOR ECONÔMICO, 03.29.2019)

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Russia postpones first parliamentary reading of Cryptoactive Regulatory legislation The Russian Duma has postponed the reading of the law that it intends to recognise, define and regulate financial digital assets, including cryptoassets. The debate on regulation was scheduled for the 03.22.2019, followed by the choice of the date for plenary voting. The bill is controversial among Russian parliamentarians, having been edited to withdraw the terms “cryptoassets”, “smart contracts” and “token” of the text, and, on account of the whole controversy, their discussion was postponed to April. (CCN; 03.24.2019)

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QuadrigaCX may have its bankruptcy declared As reported in our previous newsletters (02.12.2019 and 03.12.2019)), the saga of QuadrigaCX is far from over. Ernst & Young, designated as the exchange’s judicial administrator, suggested that a bankruptcy process may be “more beneficial” for the creditors of the exchange. Still according to the announcement, the process of recovering the blocked money may continue during the bankruptcy process, not being an impediment to the procedure. (COINDESK; 04.02.2019)

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U.S. Securities and Exchange Commission (SEC) postpones, again, decision on Bitcoin ETFs As repeatedly reported in ours last year’s newsletters, cryptoassets ETFs are pending approval in the SEC. Last March, the SEC decided to postpone the decision on the subject. In This way, it will have more 45 days to analyze all requests made. While The SEC does not approve them, different personalities from the community have pronounced themselves believing that approval will still take place at 2019. (COINDESK; 03.29.2019)

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U.S. Securities and Exchange Commission (SEC) publishes regulatory framework on investment in digital assets In order to guide companies and startups according to the U.S. federal legislation, the SEC has published a normative framework so that the market can verify how its token will be classified in the agency view. The Framework does not expose all current legislation, but will assist the market by indicating which legislation should be followed depending on the cryptoasset. (SEC; 04.03.2019)

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LawBlock
At the end of March (03.25.2019), the Fifth Chamber of Private Law of the Court of Justice of São Paulo (TJSP) considered the registration of a document in the blockchain as a valid proof in a lawsuit about offensive content. The former governor of Goiás, Marconi Perillo, has file a suit to remove false content about him, claiming that the content was published in order to discredit him with the public opinion. To prove the alleged, the author recorded the offensive publications in the blockchain of OriginalMy, in order to demonstra-te the truthfulness and existence of the contents published on the Internet. Although the decision was contrary to the request of the author, the TJSP considered that the registration made in OriginalMy is sufficient to prove the “authenticity” of the publications.
The case demonstrates that there is a tendency to accept the records performed with the use of blockchain technology as a means of proof. The understanding of the TJSP is aligned with the current legislation, especially article 369 of the CPC/2015, that says that the “parties have the Right to employ all legal means, as well as morally legitimate, even if not specified [in] the Code, to prove the truth of the facts in which the request or defense is founded and to effectively influence the conviction of the judge. ”

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Blockchain Desk Indica
In the same line of the theme covered in the Back to Square One section of this issue, we bring “the Brookling Project Token Taxonomy” framework, which defends the existence of the Consumer Token Offering. In order to deepen the study of the subject, we also indicated the reading of the article “Will Consumer Token Offerings pass muster with the SEC?” by Guillermo Jimenez, who analyzes this new type of token in light of the latest positions of the SEC.

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Blockchain Desk.

Welcome to Blockchain Descomplicada!

We hope you enjoy our newsletter! Give us your opinion by clicking here. Your feedback is very important for the improvement of the newsletter!

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Back to Square One
Blockchain technology offers application possibilities both in the private and in the public sector. Throughout our newsletters, we have pointed out some examples of the social impact and institutional improvement promoted around the world by its use. In order to present the possibilities of the use of blockchain technology “integrated with the preservation of public interest”, the Institute of Technology and Society (ITS), with the support of the Institute of Reference in Internet and Society (IRIS), created the report “Blockchain para aplicações de interesse público”, which we indicate in this issue.

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Block News
Berlin proposes blockchain technology to record registrations and electronic bonds – The Ministries of Justice and Finance of Germany published a joint statement that proposes guidelines for the adoption of a government record of electronic securities in blockchain, in order to regulate the sector and protect investors. In addition, the possibility of ICO’s regulations was discussed. The goal is to reinforce Germany’s role in developing a blockchain strategy, according to a coalition agreement promoted in March 2018, between conservatives of Chancellor Angela Merkel and the center-left Social Democrats (SPD). (REUTERS, 03.08.2019; BUNDESMINISTERIUM DER FINANZEN, 03.08.2019)

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Cryptoassets creators will be prosecuted for money laundering, as determined by TJ-DF – According to the decision of the 2nd Panel of the Federal District Court of Appeals (TJ-DF) in Brasilia, capital of Brazil, four suspected targets of the Operation Patrick will answer for money laundering, due to the participation in a financial pyramid scheme that explored the cryptoasset named “Kriptocoin”. The decision of the 2nd Panel reverted the previous ruling of the 8th Criminal Court of Brasilia, which did not consider the existence of money laundering. The defendants were convicted, in 2018, for crimes against the popular economy, concealment of property, fraudulent misrepresentation and criminal organization. The assets seized in the operation – including luxury cars and helicopters – will be auctioned and the money will be used to compensate the victims. (G1, 03.09.2019)

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Banco do Brasil must reestablish bank relationship with Foxbit, as determined by TJ-SP – In a lower court judgment, a judge of the Court of Appeals of the State of São Paulo forced Banco do Brasil to reinstate the bank account of the Foxbit brokerage firm, which suffered the unilateral closure of its account in 2017. The Bank’s defense argued that transactions with cryptocurrencies, carried out anonymously and without governmental oversight, could bring risks to the institution. According to the judge, the unilateral closure of the current account, in addition to violating rules contained in the Code of Consumer Protection, configures abuse of right, considering that the bank account is essential for the maintenance of the brokerage firm activities. Moreover, it also states that there is no law, nor judicial determination that declares illegal the activity performed and, in addition, that the values maintained by Foxbit come from deposits of its customers who, in turn, maintain relations with other banks. The decision goes against the STJ´s (Brazilian Superior Court of Justice) rulling at the end of the year 2018, as reported in our newsletters (12.28.2018) (COINTIMES, 22.03.2019; CRIPTOMOEDAS FÁCIL, 25.03.2019)

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Denver will develop pilot project for blockchain voting system – The City of Denver, Colorado, USA, announced that it intends to utilize blockchain technology to track and store votes in its municipal elections. The pilot project will be developed in partnership with the startup Voatz, which has already successfully implemented the same solution in the state of Virginia (reported in our newsletter of 08.21.2019) . The program will allow voters overseas, military and their eligible dependents to participate in the voting through a blockchain-based smartphone app. Voters should declare their absence, go through an authentication process, and, if approved, may vote for the application in the election that will take place in the 23 to the 27 March. (COINDESK, 03.07.2019)

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Facebook announces job offer for counsel with experience in blockchain initiatives – Facebook continues to demonstrate its interest in the potential of blockchain technology. This time, the company has published an announcement for a job offer for lawyer with experience in and that wishes to work on initiatives with technology. According to the text, the selected candidate will be responsible for “drafting and negotiating a wide variety of contracts related our blockchain initiatives, including partnerships needed to launch new products and expand such products internationally”. In addition, one of the requirements is to have 5 years of legal experience, including 4 years of experience in transactions involving the technology. (COINDESK, 03.21.2019)

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Sensitive Data from 36k Unick Forex users are freely published on the Web – A considerable amount of sensitive data from Unick Forex users has been released on the Web , including Individual Taxpayers’ Register, email, bank details, passwords and Bitcoin adresses. The alleged responsible for the data leakage of 36k customers asks four bitcoins to delete the database and 0.0067 bitcoins to permanently withdraw the data. (GUIA DO BITCOIN, 03.11.2019)

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Basel Committee expresses its concerns with cryptoassets and publishes guidelines to banks – The Basel Banking Oversight Committee, which brings together the world’s leading banking regulators, published a report raising concerns about financial products related to cryptoassets citing a number of risks, such as liquidity, fraud, cyber attacks, money laundering, terrorist financing and other legal risks. In addition, the Committee criticized the high volatility and lack of standardization of cryptoassets and advised that banks should ensure that they have technical knowledge to adequately assess such risks, as well as they should maintain a public disclosure of any activity related to cryptoactive material. (FORBES, 03.13.2019)

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Blockchain Desk Recommends
Bringing a new perspective on Crypto Legal System, Vlad Zamfir (researcher of Ethereum Foundation and leader of the development of the CasperLabs Consensus protocol), in his article “Against Szabo’s Law, For a New Crypto Legal System” , identifies and questions The current crypto world rules to address blockchain governance conflicts.

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Send your opinion, suggestions for topics and everything else that can contribute to the improvement of our newsletter by clicking here.

Check out our previous newsletters by clicking here.

See you on the next issue!

Blockchain Desk.

Welcome to Blockchain Descomplicada!

We hope you enjoy our newsletter! Give us your opinion by clicking here. Your feedback is very important for the improvement of the newsletter!

Do you want to receive our newsletter? Sign up by clicking here.

* * *

Back to Square One
“Privacy” is undoubtedly one of the most important and discussed topics today. In the crypto world, the debate is highly relevant, ranging from anonymity in the blockchain to privacy in transactions with cryptoassets. There are several platforms that promise some kind of privacy (above the pseudo-anonymity of traditional networks), creating the so-called Privacy Coins. In this issue, we bring the article “The Privacy Coin Dilemma – What Are The Options On Offer?”, written by Gerald Fenech, which discusses some existing privacy coins on the market.

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Block News
BTG Pactual launches ReitBZ (RBZ) – BTG Pactual – together with Enforce – has launched ReitBZ, a cryptoasset that represents virtually an investment in properties in the Brazilian real estate market and will be backed by urban properties in Rio de Janeiro and Sao Paulo. According to the bank, the cryptoasset may be acquired by investors from anywhere in the world, except for Brazilians and Americans. In addition to the initial investment expected of fifteen million dollars, the bank intends to establish a secondary market to generate liquidity in the negotiations. (VALOR ECONÔMICO, 02.21.2019)

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Samsung Galaxy S10 will allow secure storage of private keys – According to the official statement, the Galaxy S10 will have the Samsung Knox defense mechanism, as well as allow secure storage of private keys for services based on blockchain technology. In early 2019, images of the Samsung Blockchain KeyStore were released, a mechanism that will allow the support of private keys. In addition, the mobile phone will have an integrated cryptoasset wallet that will support ERC-20 tokens, including Basic Attention Token (BAT) and EnjinCoin (EJN). The mobile phone began to be sold in selected countries on 03.08.2019, with no forecast to be launched in Brazil. (THE BLOCK, 02.21.2019; SAMSUNG NEWSROOM, 02.20.2019; PORTAL DO BITCOIN, 02.27.2019)

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Brazilian Federal Congressman Áureo Ribeiro intends to present new bill to regulate cryptocurrency – On 07.08.2015, Federal Congressman Aureo Ribeiro presented Bill No. 2303/2015 that aimed to regulate virtual currencies and air miles programs, including them in the definition of “payment arrangements” under the supervision of the Brazilian Central Bank. The bill was shelved in January 2019. In an interview with the Portal Bitcoin, o deputado informou que irá apresentar novo projeto de lei, com uma abordagem diferente, com fim de “fortalecer e dar garantia as pessoas que transacionam com criptomoedas”. (PORTAL DO BITCOIN, 24.02.2019; site da CÂMARA DOS DEPUTADOS, acesso em 07.03.2019)

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Russia plans to issue an official cryptoasset – Segundo Oleg Nikolayev, membro da Comissão de Política Econômica da Duma (Congresso Federal Russo), a bill on cryptoasset is in the final stages of proceedings. If the bill is passed, it will be possible to officially develop the technology and the cryptoassets. Among development initiatives, there is the prospect of launching an oil-based cryptoasset. (CRYPTORADAR, 02.26.2019)

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EXODUS1 mobile phone gets updates – HTC’s Exodus1 cell phone, as reported in the newsletter of 12.28.2018 is considered the first mobile phone with blockchain technology, will receive about 20 new decentralized applications. Among the applications, it was announced a tracker that will collect personal data and allow the sale of this data to previously registered companies in a transparent way and fully controlled by the user of the mobile phone. In addition, the Opera browser will be integrated into the mobile phone and through its wallet, it will be possible to perform micropayments on sites that accept cryptoassets. (THE VERGE, 02.26.2019)

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Facebook plans to launch a cryptoasset – As reported in our newsletter of 12.02.2019, Facebook hired a team involved in the startup Chainspace, giving indications that it will intensify investments in blockchain. Now, according to the New York Times, Facebook is developing a cryptoasset for WhatsApp users, which would function as a payment system similar to the one in WeChat. (NEW YORK TIMES, 02.28.2019)

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QuadrigaCX’s Cold Wallets were found empty – As reported in our newsletter on 02.12.2019, Canada’s largest exchange, QuadrigaCX, lost access to $ 190 million in cryptoassets over the death of Gerald Cotten, its CEO. At the time, it was informed that QuadrigaCX was managed by its CEO through its personal computer and its widow described that the usual procedure was the transfer of the cryptoassets to a cold wallet to protect them from hackers and virtual thefts. However, it has recently been identified that six cold wallets in which the Exchange kept its assets were empty. According to the detailed timeline posted on the site Amy Castor in February 2019, 104 bitcoins were transferred from the hot wallet of the Exchange to the cold wallet of the CEO reported as dead. With such twists and turns, there is some speculation about the CEO’s death. (BLOOMBERG, 03.01.2019; AMY CASTOR, accessed 03.07.2019; INVEST IN BLOCKCHAIN, 02.11.2019)

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Blockchain Desk Recommends
In order to deepen the studies on Smart Contracts, we recommend in this issue the article “An Introduction to Smart Contracts and Their Potential and Inherent Limitations”, published in Harvard Law School Forum on Corporate Governance and Financial Regulation, written by Stuart D. Levi and Alex B. Lipton. The article analyzes smart legal contracts under the light of the US legal system, but also raises important points for studying the subject in Brazil, from its effectiveness to the possible future of technology.

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Blockchain Desk.

Welcome to Blockchain Descomplicada!

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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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Check out our previous newsletters by clicking here.

See you on the next issue!

Blockchain Desk.

Welcome to Blockchain Descomplicada!

We hope you enjoy our newsletter! Give us your opinion by clicking here. Your feedback is very important for the improvement of the newsletter!

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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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Send your opinion, suggestions for topics and everything else that can contribute to the improvement of our newsletter by clicking here.

Check out our previous newsletters by clicking here.

See you on the next issue!

Blockchain Desk.

Welcome to Blockchain Descomplicada!

We hope you enjoy our newsletter! Give us your opinion by clicking here. Your feedback is very important for the improvement of the newsletter!

* * *

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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See you on the next issue!

Blockchain Desk.