Blockchain Transaction Tested By JP Morgan In Space

Blockchain Transaction Tested By JP Morgan In Space

JP Morgan recently tested a blockchain transaction in space, using Danish space firm GomSpace’s satellites. But what is blockchain transfer? How will this help in peer-to-peer satellite marketplace opportunities?

Crux of the Matter

What’s Special About This?
It is the world’s first bank-led tokenized value transfer in space. It was executed with the help of a blockchain network.

How Did This Take Place?
The transaction happened between 2 GOMX-4 satellites in the low Earth orbit (LEO). This made it a ‘decentralised’ approach i.e  where dependency on a single server point, like on the earth, is not necessary.

Future Scope
There is a possibility of a peer-to-peer satellite marketplace. This allows satellite data transfers against payment, as private companies prepare to launch their own constellations.

What Is Blockchain?
It is a structure that stores transactional records or blocks of public data, in several databases or the “chain.” 

What Is A Ledger?
The network connected through peer-to-peer nodes forms a digital ledger i.e it contains replicated and shared digital data, geographically spread across multiple sites. 

How Does This Make It Secure?
Every transaction in this ledger is authorized by the digital signature of the owner. This authenticates the transaction and prevents any meddling.

What About Mining?
It is the  process of adding transactional details to the present digital/public ledger. So it validates every step while operating bitcoins or other cryptocurrencies.

Read in detail about blockchain: What Is Blockchain And Blockchain-Powered Driving License?

Curiopedia
  • Cryptographer David Chaum first proposed a blockchain-like protocol in his 1982 dissertation “Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups.” Further work on a cryptographically secured chain of blocks was described in 1991 by Stuart Haber and W. Scott Stornetta. They wanted to implement a system where document timestamps could not be tampered with.
  • Blocks hold batches of valid transactions that are hashed and encoded into a Merkle tree. Each block includes the cryptographic hash of the prior block in the blockchain, linking the two. The linked blocks form a chain. This iterative process confirms the integrity of the previous block, all the way back to the initial block, which is known as the genesis block.
  • The block time is the average time it takes for the network to generate one extra block in the blockchain. Some blockchains create a new block as frequently as every five seconds. In cryptocurrency, this is practically when the transaction takes place, so a shorter block time means faster transactions.

Memelord Musk Gets Meme Crypto Dogecoin Soaring

Memelord Musk Gets Meme Crypto Dogecoin Soaring

Elon Musk can never be not in news. This time, his series of tweets on cryptocurrency Dogecoin has sent the crypto rate soaring. Let us dive deep into the matter.

Crux of the Matter

Musk’s tweets on Dogecoin are given below.

Here’s what happened to the Dogecoin price.

What Is Doge Though?
Doge is a meme that became popular in 2013. It consists of a picture of a Shiba Inu dog accompanied by multi-colored text. It represents an internal monologue, which is deliberately written in broken English.

What More Can Happen?
The rally was further fueled by rapper Snoop Dogg who tweeted an image that said “Snoop Doge”, referring to the cryptocurrency Dogecoin.

Neither First Nor The Last
Dogecoin isn’t the first thing that ‘Musk’eteers were frenzied about after Musk’s tweet.

During WhatsApp privacy policy row, Musk tweeted “Use Signal.” It sent the stock price of the wrong company soaring.

Some time back Musk changed his Twitter bio to “#bitcoin”, which sent Bitcoin soaring. Tesla has bought Bitcoins worth $1.5 bn and will also accept payments in Bitcoin. This news sent the cryptocurrency soaring to an all-time high of $44,000.

Is India’s Cryptocurrency Ban Aimed At Announcing New Digital Currency Of RBI?

Is India’s Cryptocurrency Ban Aimed At Announcing New Digital Currency backed by RBI?

The twisted tale of the Cryptocurrency is back in the news. With the government planning to launch the proposal for banning these digital assets, let us look upon the events as they unfolded for the same and how it may be a precursor to the launch of Central Bank Digital Currency (a cryptocurrency) backed by the RBI.

Crux of the Matter


The Proposed Bill
The cryptocurrency and Regulation of Official Digital Currency Bill, 2021.

  • Establish a framework for creating Official Digital Currency issued by the RBI.
  • Seeks to ban all private cryptocurrencies.
  • Exempted for the usage of crypto technology.

The Dilly Dallying Timeline Of Crypto Ban

  • 2018: The RBI banned cryptocurrency transactions and mandated all the banks to stop dealing with cryptocurrencies.
  • 2019: The GOI panel too banned all the cryptocurrencies. A prison term of 10 years was established for individuals dealing in digital currencies.
  • 2020: The Supreme Court overturned the Central bank’s order terming it to be disproportionate.
  • 2021: The GOI proposed the bill in the lower house for banning the cryptocurrency. 

How Would RBI Develop Its On Crypto?

  • Step 1: A Central Bank Digital Currency (CBDC) would be backing RBI and in turn, the government.
  • Step 2: The Indian Rupee bills would be then converted into digital format.
  • Step 3: These digital bills would be issued and backed by the RBI.
  • Step 4: Further making it as an alternate currency for transactions.

Central’s Rationale For Ban

  • Price fluctuations.
  • The risk to consumers.
  • Criminal activities cannot be traced
  • An enormous amount of power consumption required for a single transaction.

Counter Arguments

There’s no such thing as a private cryptocurrency. Crypto by their very nature are decentralized and public.

Niscal Shetty, Founder Of WazirX

Crypto assets are more like alternate govt. Issued legal tender. Govt’s digital currency and cryptocurrency can coexist.

Rahul Pagidipati, CEO, Zebpay

Read more about cryptocurrency here.

Curiopedia
  • China has started its own digital currency called e-RMB. When made publicly available, it will be the world’s first state-backed digital currency.
  • RBI was conceptualised as per the guidelines, working style and outlook presented by Dr B. R. Ambedkar in his book titled “The Problem of Rupee – Its origin and its solutions” and presented to the Hilton Young Commission. Eventually, the Central Legislative Assembly passed these guidelines as the RBI Act 1934.
  • The central bank founded a subsidiary company—the Bharatiya Reserve Bank Note Mudran Private Limited—on 3 February 1995 to produce banknotes. The company operates in Indian and global markets, catering to security document needs of Central banks and monetary authorities of the world by designing, printing and supplying banknotes

Cryptocurrency: Legal, Taxation, & Financial Aspects In India

Cryptocurrency: Legal, Taxation, & Financial Aspects In India

A few months ago, SC reversed RBI’s ban on dealing in cryptocurrencies. Since then many startups are working to introduce decentralised finance (Defi) to provide financial & banking services using cryptocurrencies. With the crypto market of India growing rapidly, the government has a Bill on its table that can ban and criminalize dealing in cryptocurrency. Amidst all the clutter, let’s look at the legal, taxation, and other features of cryptocurrency in India.

Crux of the Matter

Before we delve into the economic, legal, and taxation features of cryptocurrency in India, you can read some interesting stats on cryptocurrency here: Cryptocurrency In Numbers.

Why Is The Attraction Towars Cryptocurrency Increasing?
Vibhor Jain, the founder of Chained Ventures says that traditional banking and finance are facing stability issues. Moreover, the rate of return from these traditional sources has also significantly reduced. Hence, many are putting their money on the blockchain and earning an interest of 9-12% on crypto-deposit.

Is Cryptocurrency Legal In India Then?
Cryptocurrency is not illegal but it is also not considered a legal tender in India. There are no laws pertaining to cryptocurrency and currently, it is in a grey area.

Is Income From Cryptocurrency Taxable?
India’s Income Tax Act does not have any provision on the taxability of cryptocurrencies. Taxation on cryptocurrency depends on the regularity of transactions and treatment in books of accounts.

Since cryptocurrency does not fall within the definition of currency under the current statute definitions, the gains would be taxed either as income from business/profession or as capital gains.

Riaz Thingna Director, Grant Thornton Advisory

The Feature Of Anonymity

  • Personal identity i.e name, physical address, and email address is not linked to bitcoin transactions.
  • Public addresses are used for transactions.
  • Due to untraceability of crypto transactions, governments are not allowing a significant quantity of transactions to take place anonymously.
  • Governments fear it could be misused for funding illegal activities, terrorism, etc.

Experts’ Stand On The Matter
Kenneth Saul Rogoff, Chief Economist of IMF says governments are not allowing crypto because it would be difficult for governments to collect tax as tracing every transaction is difficult. He also says that once the allure of anonymity is removed, cryptocurrencies are good to use. Rogoff also says that it is wrong to say cryptos have no worth simply because they don’t have a backing. However, if the supply of crypto can be controlled then it will have value as a transaction medium.

Subhash Chandra Garg, Former Finance secretary says that since currency represents purchasing power, it must be issued in a well-calibrated way by the government or RBI. He also says if a private party starts issuing currency, the monetary policy goes for a toss. Garg says Facebook’s crypto Libra’s value will be maintained in terms of global currency, so FB will have to manage its value by buying more dollars at the market rate, making the process very costly. So eventually the issuing agency will make losses and cryptocurrency may not be reliable.

It must be noted that Garg is leading the Bill banning and criminalizing cryptocurrency in India.

Not accepting cryptocurrencies may damage local economies in the long run. Governments must realise that cryptos will not replace fiat currency. In fact both can coexist.

Changpeng Zhao, CEO Binance

Curiopedia
  • ‘Pi’ is the first digital currency that can be mined on our phones. The digital currency is developed by 2 Stanford PhDs and an MBA; and has gained over 8 million users in less than 2 years.
  • In 1996, the National Security Agency published a paper entitled How to Make a Mint: the Cryptography of Anonymous Electronic Cash, describing a Cryptocurrency system, first publishing it in an MIT mailing list and later in 1997, in The American Law Review.
  • David Lee Chaum is a computer scientist and cryptographer. He is known as a pioneer in cryptography and privacy-preserving technologies and widely recognized as the inventor of digital cash. His 1982 dissertation “Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups” is the first known proposal for a blockchain protocol.

Cryptocurrency Heists In 2019

Cryptocurrency Heists In 2019

In the previous piece, we looked at some interesting numbers around cryptocurrency from India and the world. Amidst growing popularity of cryptocurrency, cases of heists are also increasing, resulting in loss of millions of dollars across the globe. Let’s take a look at some of them.

Crux of the Matter

Heist in South Korea
Ethereum worth $49 million stolen from South Korea-based Upbit.
Cryptos worth $13 million lost from South Korea-based Bithumb.

Heist at Binance
Bitcoin worth $40 million lost from one of the world’s largest cryptocurrency exchange Binance.

Heist in Japan
Cryptos worth $30 million lost from Japan-based Bitpoint.

Heist in United Kingdom
Ripples worth $9.5 million lost from UK-based Gatehub.

Heist in Singapore
Cryptos worth $7 million hacked from Singapore’s DrangonEX.
Cryptos worth $5 million stolen from Singapore’s Bitrue.

Heist in Vietnam
Cryptos worth $500,000 were stolen from Vietnam based Vindax.

Heist in Italy
Cryptos worth $70,000 stolen from Italy-based Altbit.

Stay tuned to our channel to know more about the legal, economic, financial, social, and technical aspects of cryptocurrencies.

Curiopedia
  • ‘Pi’ is the first digital currency that can be mined on our phones. The digital currency is developed by 2 Stanford PhDs and an MBA; and has gained over 8 million users in less than 2 years.
  • In 1996, the National Security Agency published a paper entitled How to Make a Mint: the Cryptography of Anonymous Electronic Cash, describing a Cryptocurrency system, first publishing it in an MIT mailing list and later in 1997, in The American Law Review.
  • David Lee Chaum is a computer scientist and cryptographer. He is known as a pioneer in cryptography and privacy-preserving technologies and widely recognized as the inventor of digital cash. His 1982 dissertation “Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups” is the first known proposal for a blockchain protocol.