We are back with our “But Why Blockchain?” series. Over the coming weeks, we will feature a variety of projects and individuals using blockchain and centralized technology for social good. We begin again with Thiago Amparo, one of our International Affiliated Scholars, and a professor of human rights, international law, and discrimination law at FGV Direito São Paulo Law School.
Professor Amparo’s research will be published in the coming weeks and in this episode he will preview what is to come in his paper entitled, “Blockchain, Inclusion and ESG in Brazil: Lessons from Initiatives in Brazil.”
What inspired you to research the topics of blockchain, inclusion and ESG?
The inspiration comes from the establishment, in recent years, of a culture of discussion about the need for DEI (diversity, equity and inclusion) and ESG (environmental, social and governance) policies for corporate environments and the third sector, whether due to their positive economic impact resulting from the relationship between diversity and profitability, or due to the improvement in the public reputation of the company/NGO for investors, consumers and supporters.
In this sense, blockchain, ESG and DEI are related, because while the first one offers opportunities to improve transparency, reduce fraud and guide the decision-making process, there is a consequent boost to the creation of measures for implementing ESG and to improve indicators of diversity, equity and inclusion in the workplace.
What are some of the biggest differences between the blockchain industry in Brazil and the United States?
The main differences between the USA and Brazil in this issue are related to the extent to which the blockchain industry is widespread and the primary scope of its work. Our research has found that in Brazil, blockchain technology, while it is still incipient, has been used for ESG, DEI, and to reduce social inequalities, in initiatives such as creating learning and cultural environments for children from underprivileged communities (as in the case of Educar+ and HERR DAO, both highlighted in the article).
The United States has invested more in regulating or at least providing guidance to the industry, having even published the White House Blueprint for an AI Bill of Rights, identifying five principles that should be applied whenever there is a conflict between the use of systems and data and rights in the age of artificial intelligence. With a different scope than in Brazil, US has focused on using this technology as a priority to implement audits in public services, combat the distribution of counterfeit products and mitigate the falsification of official licenses and certificates.
Conversely, are you seeing any similar trends or paths between the two countries?
The United States has used this technology for more public purposes, aimed at reducing bureaucracy, automating processes and mitigating counterfeiting methods, demonstrating that the greatest concern is the misappropriation of public resources. In Brazil, it is possible to observe that blockchain technology is used more by the private sector, in order to reduce inequalities in the corporate environment and guarantee the origin of sustainable products offered to the consumer market.
Nevertheless, the Brazilian federal government already uses blockchain technology in services such as issuing new digital identities, notarial deeds and digital certifications (ICP) and even issued Decree-Law 10.332/2020, which established digital strategies for the period from 2020 to 2023, including the implementation of resources for the creation of a Federal Government blockchain network by 2022. The trend, therefore, is for the use of technology to be increasingly used by the public sector, as in the USA, but to continue to be used primarily by the private sector, given that Brazil is one of the most unequal countries in the world and that, consequently, this scenario is reflected in the private sector.
But why blockchain?
Blockchain technology is innovative and secure, as it is built on a complex data network that becomes increasingly secure as more information is added to it, so that for a hacker to commit fraud, it would be necessary to invade and edit the data from all previous blocks.
These two elements combined make the topic, which is contemporary, even more interesting, as the technology should be further improved in the coming years to provide even greater protection and reliability to the data recorded there, giving even more confidence to the ESG and DEI reports that are issued based on the information gathered there.
Follow Thiago Amparo on LinkedIn and X to stay up-to-date on his research.
