Facebook’s Cryptocurrency – “Libra”
·
There’s a new cryptocurrency
called Libra to be rolled out by Facebook by 2020.
·
Facebook also announced a
dedicated wallet app called Calibra, which will be built into WhatsApp and
Messenger as well, to let users store and use these Libra coins.
What
is Libra?
·
Libra is a cryptocurrency built on a blockchain
network, though Facebook was quick to insist that it will respect user privacy
and transactions will in no way to be linked to the user’s real world identity.
·
Libra is like any other cryptocurrency powered by
blockchain technology.
·
It wants to be a ‘global currency’, one that can be
used to transfer money anywhere in the world without any transaction fees.
·
The claim is that Libra will be accessible to
anyone with a smartphone, even a low-cost budget phone, and a network
connection.
·
Of course, there are several mobile payment
services already offering seamless payments, though with real-money.
Calibra
Wallet
·
Calibra is the digital wallet from Facebook to let
users store these Libra coins.
·
Facebook says this is a separate company, and data
will not be shared with them and it will respect user privacy.
·
Calibra will have a dedicated team of experts in
risk management to prevent fraudulent use.
·
Also if someone loses their Libra coins from the
Calibra wallet, they will refund users. Libra will also work with other
third-party wallets.
·
Calibra will also be added to WhatsApp and
Messenger.
How
will Libra blockchain work?
·
Libra is also being governed by the independent
Libra Association, which is not what you see in typical cryptocurrency.
·
A new programming language is also being built for
Libra called Move, which the organisation claims is more secure and private.
·
The Libra Blockchain will record the history of
transactions and states over time, rather than the typical blockchain where
each transaction is added a new block.
Buying
Libras
·
The network is still far from ready. The Libra
blockchain will be tested over the coming months.
·
While there’s no word on exactly how someone will
buy Libra, the Calibra wallet from Facebook will probably be one way.
·
To purchase Libra, user will have to pay in their
local currency, provided the laws allow it.
Its
uniqueness
·
Libra will also be backed by a reserve of assets
designed in order to “give it intrinsic value” and ensure stability, which is
not seen in typical cryptocurrencies.
·
These assets includes securities and fiat
currencies (like dollar, pound) etc as part of this reserve.
·
The website says Libra will be backed by
“short-term government securities in currencies from stable and reputable
central banks.”
·
Still the “value of the one Libra in any local
currency may fluctuate,” cautions the page.
·
The idea is to ensure Libra is stable to give more
users confidence in this, while ensuring that currency does not fluctuate
wildly like other cryptocurrencies such as Bitcoin which had at point had
reached a high of $20,000.
Is
Facebook the sole company involved in Libra?
·
Facebook is not the only company, though it has
leadership role for all of 2019, which means it will have a significant role in
deciding the direction for Libra at least for this year.
·
Facebook’s teams have also helped build the
technology for the currency.
Will
Libra work in India?
·
Cryptocurrency is illegal in India and the draft
bill right now is recommending a maximum of 10 year punishment for those who
mine, trade, buy or sell these.
·
In India, if the bill passes, trading in
cryptocurrency could result in hard punishment.
·
So one of the biggest markets, which is India, will
not be able to use Libra, which could limit its potential.
·
The Supreme Court of India is hearing a matter
regarding regulation of Bitcoin in India and the matter will now be heard on
July 23, 2019.
What is Blockchain Technology?
1.
It is a decentralized digital
ledger that records transactions on thousands of computers globally in such a
way that the registered transactions cannot be altered retrospectively.
2.
It is a secured way of
conducting online transactions and its use removes the characteristic of
infinite reproducibility from a digital asset.
3.
In the case of cross-border
remittances, its use enables instant transfer of money as against the current
system that takes about a week for the same.
Application
1.
It is the technology behind
crypto-currencies, for example, Bitcoins.
2.
*Each block comprises of a hash
pointer that acts as a link to a previous block. Along with those it comprises
of a timestamp and transaction data.
3.
*Blockchains are resistant
technologies to modification of the data.
What is Bitcoin?
1.
It is an electronic or digital
currency that works on a peer-to-peer basis. It is decentralized and has no
central authority controlling it.
2.
Bitcoins can be sent digitally
to anyone who has a bitcoin address anywhere in the globe. One person could
have multiple addresses for different purposes – personal, business and the
like.
3.
A bitcoin is not printed
currency but is a non-repudiable record of every transaction that it has been
through. All this is part of a huge ledger called the blockchain.
4.
Bitcoins are available in
bitcoin exchanges. They can be purchased from other users. A bitcoin is
generated when an entity, i.e. a person or a business, uses software power to
solve a mathematical puzzle that makes the blockchain more secure. The
difficulty level of solving the problem is high enough to ensure that it takes
time to do it.
Advantage Associated with Bitcoin
Problems
1.
Limitation of 21 M bitcoin
currency that will last till 2040
2.
It is possible to launder money
and buy illegal products. Since Bitcoins can be spent on the Internet without
the use of a bank account, they offer a convenient system for anonymous
purchases.
3.
Money laundering
4.
No regulation
5.
Possibility of Hacking
6.
Degree of acceptance – Many
people are still unaware of Bitcoin.
7.
Ongoing development – Bitcoin
software is still in beta with many incomplete features in active development.
8.
Volatility – The total value of
bitcoins in circulation and the number of businesses using Bitcoin are still
very small compared to what they could be. Therefore, relatively small events,
trades, or business activities can significantly affect the price.
International Yoga Day 2019
International Yoga Day 2019:
The International Yoga Day is celebrated every year on June 21. It was first introduced by the United Nations on June 21, 2015.
The main aim is to create an awareness worldwide on the importance of staying fit and healthy.
Why was June 21 selected to be International Yoga Day? June 21 is the longest day of the year in the Northern Hemisphere and has special significance in many parts of the world. Prime Minister Narendra Modi had proposed this date at the United Nations General Assembly 2014.
2019 Theme: Yoga for Climate Action.
Summer solstice 2019
What to study?
For Prelims and Mains: All about summer Solstice- its occurrence, why it occurs, significance and changes associated.
Context: 21 June marks the beginning of Summer Season. June 21 is the longest day of the year 2019 as it marks the Summer Solstice in the Northern Hemisphere.
What does ‘solstice’ mean?
The term ‘solstice’ derives from the Latin word ‘solstitium’, meaning ‘Sun standing still’. On this day the Sun seems to stand still at the Tropic of Capricorn and then reverses its direction as it reaches its southernmost position as seen from the Earth. Some prefer the more teutonic term ‘sunturn’ to describe the event.
What causes this?
Solstice is an astronomical event, caused by Earth’s tilt on its axis and its motion in orbit around the sun.
At the June solstice, Earth is positioned in its orbit so that our world’s North Pole is leaning most toward the sun. As seen from Earth, the sun is directly overhead at noon 23 1/2 degrees north of the equator, at an imaginary line encircling the globe known as the Tropic of Cancer – named after the constellation Cancer the Crab. This is as far north as the sun ever gets.
Implications:
All locations north of the equator have days longer than 12 hours at the June solstice. Meanwhile, all locations south of the equator have days shorter than 12 hours.
A home in space
ISRO has declared its intention to build a permanent space station for itself, possibly in the next five to seven years. After the mission to moon and Mars and a proposed manned space flight before 2022, this is the next logical step for the agency.
ISRO’s aspirations
ISRO would be undertaking many prolonged space exploration projects and sending many astronauts into space, such that it would require a permanent station for itself.
Indian Space Station
- The Indian space station will be much smaller (mass of 20 tonnes) than the International Space Station and will be used for carrying out microgravity experiments (not for space tourism)
- It will orbit Earth at an altitude of around 400km.
- Preliminary plan for the space station is to accommodate astronauts for up to 20 days in space, and the project will be an extension of the Gaganyaan mission.
- ISRO (Indian Space Research Organisation) is working on space docking experiment (Spadex), a technology that is crucial for making the space station functional.
History of Space mission
- For four decades since its inception in the early 1960s, ISRO had, apart from building its capacities, focused primarily on harnessing space technologies for societal benefits.
- Yash Pal, the first director of Space Application Centre in Ahmedabad, once described India’s space mission as “almost a sociological programme” as much as a technological programme.
- Vikram Sarabhai, the father of India’s space programme, used to repeatedly make the point that India must be second to none in the application of advanced technologies to “the real problems of man and society”.
- Even as late as in 2015, Prime Minister Narendra Modi got all government departments to sit down with ISRO and identify the areas where space technology could help them achieve their objectives.
Proven Capacity of ISRO
- In the next phase, beginning this century, ISRO established itself as a reliable and economical launcher of commercial satellites.
- It demonstrated its capabilities to launch all kinds of satellites and delivered close to 300 payloads of foreign countries in space in the last 12 years.
- This service is likely to continue since it generates the much-needed revenue to fund ISRO’s various missions.
New Mission into space explorations
- However, ISRO is signalling that it is now ready to take a leap into space exploration. Chandrayaan-2 and Gaganyaan are, in fact, heralding ISRO into this new phase.
- There is a mission to the sun coming up next year, while another to Venus has also been announced.
- More inter-planetary explorations, and possibly a human flight to the moon, are also in the pipeline.
The utility of space station
- The space station is a facility India would need in the context of missions such as these and more.
- NASA’s International Space Station, the only one functional right now, is slated to retire by 2025, or latest by 2028, and no replacement for it has been confirmed so far.
- It is likely that future space stations would be commercial facilities, available to anyone for a fee. For an agency that is still to execute a successful human space flight, all this might seem a little premature.
- And the proposed five to seven-year timeline to achieve it, surely, is ambitious. But ISRO is known to set ambitious targets, and achieve them as well.
- Space station is essential for collecting meaningful scientific data, especially for biological experiments.
- Provide platforms for greater number and length of scientific studies than available on other space vehicles. ( as Gaganyaan will take humans and experiments in microgravity for few days only).
- Each crew member stays aboard the station for weeks or months, but rarely more than a year.
- Space stations are used to study the effects of long-term space flight on the human body.
NAVIGATIONS IN BISHKEK
Prime Minister Narendra Modi embarked on a two-day visit to Bishkek in Kyrgyzstan for the Shanghai Cooperation Organisation (SCO) summit.
India will hold bilateral meetings with Russia and China on the side-lines of the Shanghai Cooperation Organisation(SCO) summit at Bishkek.
At the 19th Shanghai Cooperation Organization (SCO) summit in Bishkek, Kyrgyzstan, India will have to navigate between two contradictory imperatives.
While on the one hand it must act as a willing partner of regional cooperation led by China and Russia, on the other it must avoid being seen as a part of the ‘anti-American gang’.
It could also be seen as a paradox that India wants to fight against terrorism through a body that includes states that pose the biggest threats to Indian security.
About Shanghai Cooperation Organization:
SCO is a permanent inter-governmental international organisation formed in 2001. It is established to ensure greater Coordination among the major powers in the Eurasian Region.
SCO comprises Eight Member States i.e., India, Kazakhstan, China, Kyrgyzstan, Pakistan, Russia, Tajikistan and Uzbekistan.
It was preceded by the Shanghai Five Mechanism. The Heads of State Council (HSC) is the supreme decision-making body in the SCO and it meets once a year.
How does membership of the SCO help India?
For India, two important objectives are counter-terrorism and connectivity.
- These sit well with the SCO’s main objective of working cooperatively against the “three evils” terrorism, separatism and extremism.
- India wants access to intelligence and information from SCO’s counter-terrorism body, the Tashkent-based Regional Anti Terror Structure (RATS).
- A stable Afghanistan too is in India’s interest, and RATS provides access to non-Pakistan-centred counter-terrorism information there.
- Connectivity is important for India’s Connect Central Asia policy. Energy cooperation dominates its interest – and it’s in China’s neighbourhood. \
- But India will also have to deal with an assertive China, which will push its Belt and Road Initiative during the summit.
- SCO membership also bolsters India’s status as a major pan-Asian player, which is boxed in the South Asian paradigm.
- The Prime Minister also highlighted the need for tackling climate change, saying that India is committed to developing solar energy.
PM Modi says nations supporting terrorism should be held accountable, isolated:
India has been a permanent SCO member for two years now and has positively contributed to all its activities and continued engagements to enhance SCO’s role and credibility on the international stage.
PM Modi highlighted the spirit and ideals of the SCO to strengthen cooperation in the fight against terrorism.
Modi briefly discussed Pakistan and asserted that India’s efforts towards peace with the neighbouring country have been “derailed” as Islamabad has not created an atmosphere “free of terrorism”. He stressed that talks cannot happen with terrorism at the helm.
He also called on the SCO member states to cooperate under the SCO Regional Anti-Terrorist Structure (RATS) against terrorism and again stressed upon the need for a global conference on terrorism.
How does global geopolitics play out for SCO and India?
- The US’ power struggle with China, exit from the Iran nuclear deal JCPOA (affects India’s oil imports from Iran), and adversarial attitude towards Russia (affects India’s defence purchase like S-400) have forced India to choose sides.
- While Washington’s stance against Islamabad after the Pulwama attack was evidence of its support to New Delhi, India has had a strained relationship with China after the Doklam stand-off, followed by attempts to reset relations in Wuhan.
- India, however, has always been tactful in not aligning with these countries on governance issues.
- What draws India to SCO is the “Shanghai spirit”, which emphasises harmony, non-interference in others’ internal affairs, and non-alignment.
- The bottom line is that it helps India keep all options open in terms of international partnerships.
SCO will be new alternative to dormant SAARC:
In the absence of the SAARC summit, the SCO summit gives an opportunity for Indian and Pakistani leaders to meet informally, on the side-lines.
Both sides have the obligation not to bring in bilateral disputes, but can cooperate on issues of mutual interest and importance.
Signing off on joint counter-terrorism exercises will be a new form of engagement between the two militaries.
With China, it is yet another opening, like the BRICS summit last year, to bring down tensions, and ahead of the next informal summit in October in India.
While India had refused to endorse China’s Belt and Road Initiative at the last SCO summit in Qingdao, we hope that India pushes for SCO connectivity. The connectivity issue has been hijacked by BRI and China.
Conclusion:
To be sure, none of the institutional-level measures including the joint SCO military exercises have so far entailed any satisfactory results in jointly fighting against terrorism.
Nevertheless, the SCO is relevant for India to garner support for reforms of the UNSC to make the UNSC more representative and effective.
India has been lending support to the member countries’ candidatures for non-permanent membership of the UNSC for a long time.
To tackle the danger of terrorism, all humanitarian powers should come forward together. Countries that provide encouragement, support, and finances to terrorism must be held accountable.
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