GOV Token will use Lightening Network, second layer of bitcoin. Image: Gerd Altmann, Pixabay.
A fintech Investtools confirmed today (18) that GOV Token, a blockchain to track public spending, is under development and based on the bitcoin network. “It’s the first in Brazil,” says the startup. The minimum viable product (PMV) must be ready by the end of the year.
What the GOV Token does is track the release of public funds. Thus, it allows the immutability of data, auditing and access to information by citizens. And with that, fight corruption.
For this, it issues tokens linked to the value of the real, but without commercial or speculation purposes. These tokens contain resource values, origins and destinations, ensuring the money gets to the right place. There is exchange and verification of tokens between the parties. And then register on the network.
Last January, the GOV Tech project received R$ 1.5 million from development agencies. The Financier of Studies and Projects (Finep), the Carlos Chagas Filho Foundation for Research Support of the State of Rio de Janeiro (Faperj) and the Development Agency of the State of Rio de Janeiro (AgeRio) are the project’s funders.
According to David Gibbin, CEO of Investtools, the use of bitcoin in the GOV Token is due to the credibility of security on the network. But as the
network scalability is low, the project uses Lightning
Network, second layer of the bitcoin network.
GOV Tech usa Lightning Network
Instead of using Lightening Network for digital wallets or payment terminals, Investtools uses it for communication between institutions. With this, it wants to speed up data recording and streamline transactions.
“It works as a communication channel for transactions between members of the GOV Token network and the bitcoin blockchain. In it, it is possible to make transfers instantly, which are then registered in the bitcoin blockchain”, says Marco Jardim, director of Blockchain Technology at Investtools.
The log can enter a transaction on the Lightning Network if it needs instant commit, or on the bitcoin blockchain if it’s okay to wait for the next block to be mined.
GOV Tokens is a project by Blockchain Studio, Investtools business unit for this technology. The startup is at the Genesis Institute, at the Pontifical Catholic University (PUC) in Rio de Janeiro.
The company is a partner of Grana Capital, which has an Income Tax calculation and management application for investors on the Stock Exchange. And it was selected for Hupp!, the first innovation and technology hub for private pensions, and for Sebrae’s ScaleUp.