The Federal Court of Auditors (TCU) and the National Bank for Economic and Social Development (BNDES) launched this Monday (30) the Brazil Blockchain Network (RBB). According to the institutions, the objective is to optimize the transparency of government services.
The network, public and non-profit, will have national coverage and the idea is that the first decentralized application will take place in 2023. For now, the event was an idea launch and a call for all public entities and bodies interested in the system to do adhesion to the project and collaborate in the construction of the RBB.
The president of BNDES, Gustavo Montezano, also highlighted that an agreement will be made for more institutions to participate in the construction of the RBB, “the more people acting collectively, the better”.
The next steps are, according to the superintendent of the BNDES’ technology area, Fernando Lavrado, to design the regulation of the network and start the process of joining all interested entities and public bodies. “[Queremos] leave the laboratory structure and set up the production pilot; so that third parties focus more on the application than the structure [que já foi pensada por nós]”.
O blockchain it is a digital structure that works as a public database, with the storage of information in sequentially linked blocks, explained the TCU. Operations are validated by independent agents.
In this technology, anyone will be able to oversee and track government operations. However, only authorized entities will be able to register and process transactions within the network.
According to Wesley Vaz, director of the Information Technology Inspection Department at TCU, the objective is to provide greater effectiveness and efficiency in improving the lives of Brazilians.
He highlighted that a chronic problem has been unfolding over the years: the distrust of the State by the Brazilian population. Thus, Vaz says that blockchain will increase trust in processes and situations that involve multiple parties.
“It is a technology capable of affecting existing economic and social relations”. The director explains that the goal is for the government to move from being the controller of transactions to providing a platform for decentralized services.
Montezano further stated that blockchain brings more security to public servants in recording operations and hiring at all levels. “[O RBB] can definitively change the functioning of the public machine in terms of transparency, efficiency and security”.
Today, to try to regulate public money processes, for example, mechanisms of verification controls, audits, and regulatory policies are used.
Vaz, from the TCU, explained that the blockchain it is used around the world in services such as issuing land titles, issuing receipts for commodities used as collateral, recording grades and university degrees, services that, in traditional operation, are subject to counterfeiting and hacking.
In Brazil, the government of Espírito Santo has already studied using the technology in a digital auction of goods.
how will it work
The network will have three participants: patrons, who will be TCU and BNDES, with the function of veto and vote; associated participants, who will participate in governance with voting and will have the power to validate nodes on the blockchain; and partners, who may use the technology to transact.
The network will not need a crypto asset to operate the smart contracts and applications, as the ethereum network works, for example, that is, a mining process will not be required. But it will be possible to create tokens.
The RBB will also function as proof of authority, not proof of work, explains the superintendent of the BNDES’ technology area. “Consensus was chosen to avoid using a mechanism that required excessive energy consumption.”
In this model, node approvals will be previously authorized according to the purpose of the networks and only by state agents.
Origin
BNDES and TCU have already dealt with the subject before. In the case of the Court of Auditors, an audit analyzed in 2020 by the court pointed out that technology could provide government hyperconnection, fight fraud and corruption, and optimize digital services provided to citizens.
The idea emerged in the second half of 2019, from an audit survey that pointed out the risks and opportunities for public administration bodies to use technology, said TCU Minister Ana Arraes.
However, a first pilot was created in 2018, in which the BNDES token was created, which functioned as the tracking of issues disbursed by banks, said Lavrado.
*With information from the State Agency
Source: CNN Brasil
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