Brazilian Development Bank Introduces Blockchain Network

On May 30th, a distributed and public blockchain by the name of the Brazilian Blockchain Network was officially launched by the Brazilian Development Bank. The Court of Accounts of the Union also assisted in the launch of this structure, which has been introduced with the sole purpose of helping other institutions in Brazil in ensuring transparency. The goal is to invite other institutions onboard for collaboration that would bring about the growth and development of this Blockchain network. The responsibility of the development of this network was of the Brazilian Development Bank’s president, Gustavo Montezano.

He stated that other government institutions would sign agreements with the bank for collaborating on this particular project because he said that it was better to work collectivity on this task. He said that the next milestone that the Brazilian Blockchain Network has to achieve is to move out of the lab and come up with a production prototype. He said that this would come in handy for third parties, as they will be able to use the network for building apps. It should be noted that they do not expect to have any working applications available before next year because the project still remains experimental for the most part and institutions are working on it in their laboratories.

A large number of Brazilians do not trust state institutions and this is a problem that this network aims to address. The head of the Department of the Information Technology Inspection at the Courts of Accounts of Union, Wesley Vaz said that they could resolve this major problem when they use this blockchain network for dealing with public processes and ensure compliance with pre-established constraints. They will design constraints and rules for the blockchain that will be meant to play the same role as the standard procedures that are applicable today.

According to Montezano, the purpose of this blockchain network is to achieve the said objectives. He said that they could change and improve public processes with the Brazilian Blockchain Network when it comes to ensuring security, efficiency and transparency. It is important to note that the Brazilian Development Bank has been developing this particular network since 2018. But, it was not until recently that they had begun to disclose details about it only recently. Gladstone Aranteshad shed some light on this technical operation back in March.

He revealed that the consensus mechanism that would be used for the design of the network would be proof-of-authority. He also said that there would not be any kind of mining involved on this network. He had also stated at that time that the base of the project would be HyperledgerBesu 2.0. This would certainly be a big achievement for Brazil and also highlight the expansion and growth of the blockchain industry in the country. Blockhain is the technology that powers bitcoin and other cryptocurrencies and its applications have been growing all over the world due to the transparency it offers.