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  • Blockchain Technology: Prospects and Challenges

    Why is China targeting Cryptocurrencies?

    | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    China’s crackdown against cryptocurrencies, which are those that aren’t sanctioned by a centralized authority and are secured by cryptography, is said to have a lot to do with the crashing of the value of cryptocurrencies.

    Background

    • The price of the world’s most prominent cryptocurrency Bitcoin has more than halved in the last two months after hitting a peak in mid-April.
    • The second-most valuable cryptocurrency, Ether, has seen a similar fall from its peak last month.

    What is Cryptocurrency?

    • A cryptocurrency is a form of digital asset based on a network that is distributed across a large number of computers.
    • This decentralized structure allows them to exist outside the control of governments and central authorities.
    • The word “cryptocurrency” is derived from the encryption techniques which are used to secure the network.
    • Blockchains, which are organizational methods for ensuring the integrity of transactional data, are an essential component of many cryptocurrencies.
    • Many experts believe that blockchain and related technology will disrupt many industries, including finance and law.
    • Cryptocurrencies face criticism for a number of reasons, including their use for illegal activities, exchange rate volatility, and vulnerabilities of the infrastructure underlying them. However, they also have been praised for their portability, divisibility, inflation resistance, and transparency.

    What has China done?

    • In recent weeks, China has reportedly cracked down on crypto mining operations.
    • The country has over the years accounted for a large percentage of the total crypto mining activity that takes place.
    • In purpose, Bitcoin miners play a similar role to gold miners — they bring new Bitcoins into circulation.
    • They get these as a reward for validating transactions, which require the successful computation of a mathematical puzzle.
    • And these computations have become ever-increasingly complex, and therefore energy-intensive in recent years. Huge mining operations are now inevitable if one is to mine Bitcoins.

    Why is Crypto mining booming in China?

    • Access to cheap electricity has made mining lucrative in China.
    • According to the Cambridge Bitcoin Electricity Consumption Index, China accounted for nearly two-thirds of the total computational power last year.

    For an ‘unregulated’ market

    • Actually, there is little change in the policy as far as China is concerned. It first imposed restrictions on cryptocurrencies way back in 2013.
    • It then barred financial institutions from handling Bitcoin.
    • Four years later, it barred what are called initial coin offerings, under which firms raise money by selling their own new cryptocurrencies.
    • This is largely an unregulated market.

    What does China want?

    • An inter-ministerial committee report in India two years ago noted that in 2017, the government of China also banned trading between RMB (China’s currency renminbi) and cryptocurrencies.
    • Before the ban, RMB made up 90% of Bitcoin trades worldwide.
    • The fact that cryptocurrencies bypass official institutions has been a reason for unease in many governments.
    • Not just that. The anonymity that it offers aids in the flourishing of dark trades online.
    • While many countries have opted to regulate the world of cryptocurrencies, China has taken the strictest of measures over the years.
    • According to observers, the latest set of measures are to strengthen its monetary hold and also project its new official digital currency.

    For a digital Yuan

    • China launched tests for a digital yuan in March.
    • Its aim is to allow Beijing to conduct transactions in its own currency around the world, reducing dependency on the dollar which remains dominant internationally.

    Also read:

    Legalizing Bitcoin in El Salvador and takeaways for India

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  • Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

    What is Chicago Convention of 1944?

    IOCR | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    A private commercial flight was forced to make an emergency landing in Minsk by a MiG-29 fighter jet of Belarus.  The incident received considerable global attention.

    How justified was Belarus in taking such a decision?

    • The answer lies at the junction of Belarus’s domestic laws as a sovereign country and international laws governing the action that states can legitimately take to deal with threats to security, real or perceived.
    • The issue of the use of military aircraft to neutralize potential threats posed by civilian aircraft acquired a different kind of urgency in the aftermath of terrorist attacks in the US on September 11, 2001.
    • Generally speaking, international law grants sovereignty to nations over their airspace as it does in territorial waters.

    The Chicago Convention of 1944

    • The Convention on International Civil Aviation, better known as the Chicago Convention of 1944, to which Belarus is a signatory state, prohibits any unlawful intervention against a civilian aircraft.
    • At the same time, it has various provisions under Article 9 which permit a sovereign state the right to impose restrictions.
    • This includes enforced landings at a designated airport in its territory, in “exceptional circumstances or during a period of emergency, or in the interest of public safety”.
    • Once a flight has landed, Article 16 provides the host country the right to board/search the aircraft.
    • This is probably the clause that provided cover for the local authorities to board Mr. Morales’s aircraft in Austria in 2013.
    • But the Chicago Convention applies only to civilian aircraft of the contracting parties.

    Other such laws

    • International law might also have to be examined in light of the International Air Services Transit Agreement (IASTA), also concluded in Chicago in 1944.
    • According to this agreement, contracting states grant to one another the freedom of air transit in respect of scheduled international air services, that is, the privilege to fly across territories without landing.
    • Belarus is not a signatory of IASTA.

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  • Genetically Modified (GM) crops – cotton, mustards, etc.

    First-ever genetically modified rubber planted in Assam

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    A Rubber Board research farm on the outskirts of Guwahati now sports the world’s first genetically modified (GM) rubber plant tailored for the climatic conditions in the Northeast.

    GM rubber

    • The GM rubber has additional copies of the gene MnSOD, or manganese-containing superoxide dismutase, inserted in the plant.
    • The plant was developed at the Kerala-based Rubber Research Institute of India (RRII).
    • It is expected to tide over the severe cold conditions during winter — a major factor affecting the growth of young rubber plants in the region.

    Why need GM rubber?

    • Natural rubber is a native of warm humid Amazon forests and is not naturally suited for the colder conditions in the Northeast, which is one of the largest producers of rubber in India.
    • Growth of young rubber plants remains suspended during the winter months, which are also characterized by progressive drying of the soil.
    • This is the reason for the long immaturity period of this crop in the region.

    What does MnSOD gene offer?

    • The MnSOD gene has the ability to protect plants from the adverse effects of severe environmental stresses such as cold and drought.
    • Laboratory studies conducted at the RRII showed the GM rubber plants overexpressed the MnSOD gene as expected, offering protection to the cells.
    • The plant is thus expected to establish well and grow fast in the region.
    • There was no risk of genes flowing from the GM rubber into any other native species, a concern often raised by environmental groups against GM plants in general.

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  • Wildlife Conservation Efforts

    Species in news: Pygmy Hogs

    Species | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Few captive-bred pygmy hogs, the world’s rarest and smallest wild pigs, were released in the Manas National Park of western Assam under the Pygmy Hog Conservation Programme (PHCP).

    Pygmy Hogs

    • The pygmy hog (Porcula salvania) is a native to alluvial grasslands in the foothills of the Himalayas at elevations of up to 300 m (980 ft).
    • Today, the only known population lives in Assam, India and possibly southern Bhutan.
    • As the population is estimated at less than 250 mature individuals, it is listed as Endangered on the IUCN Red List.
    • It is designated as a Schedule I species in India under the Wildlife Protection Act, 1972, and offences against them invite heavy penalties.

    About Pygmy Hog Conservation Programme (PHCP)

    • The PHCP is a collaboration among Durrell Wildlife Conservation Trust of UK, Assam Forest Department, Wild Pig Specialist Group of IUCN and Union Environment Ministry.
    • It is currently being implemented by NGOs Aaranyak and EcoSystems India.
    • Six hogs — two males and four females — were captured from the Bansbari range of the Manas National Park in 1996 for starting the breeding programme.
    • The reintroduction programme began in 2008 with the Sonai-Rupai Wildlife Sanctuary (35 hogs), Orang National Park (59) and Barnadi Wildlife Sanctuary (22).

    Now answer this PYQ in the comment box:

    Q.Consider the following :

    1. Star tortoise
    2. Monitor lizard
    3. Pygmy hog
    4. Spider monkey

    Which of the above found in India?

    (a) 1, 2 and 3 only

    (b) 2 and 3 only

    (c) 1 and 4 only

    (d) 1, 2, 3 and 4

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  • e-Commerce: The New Boom

    A regulatory hurdles could stifle e-commerce

    | Economics | Mains Paper 3: Indian Economy

    The article highlights the risk of stifling the e-commerce sector due to the government’s propensity for its regulation to protect the local traders.

    Efforts to shield local retailers

    • India began to open up its economy three decades ago, but efforts to shield local retailers resulted in a retail sector fraught with a thicket of rules.
    • With the web’s reach expanding rapidly, online retail is expected to grab a fast-widening slice of a pie placed at above $880 billion last year and projected at $1.3 trillion in 2024.
    • Such a huge opportunity has set the stage for a grand e-com confrontation, with our two biggest business houses gearing up to take on a duopoly of US-based Amazon and Walmart-owned Flipkart.
    • The more fiercely e-com is contested, the tighter this sector’s straps seem to get.

    What are the new regulations?

    • The Centre put out proposals to tighten e-com regulations for consumer protection.
    • E-com firms must appoint resident officers to address grievances and monitor rule-compliance, and then be ready to share information sought by authorities within 72 hours.
    • For the sake of “free and fair competition”, they must label all wares on their websites by country-of-origin, offer local alternatives, keep search results unbiased, not sell anything to anyone registered as a ‘seller’ with them, not conduct deep-discount flash sales of cherry-picked products.
    • Restriction on aiding associated enterprises with any helpful data gleaned by their algorithms.
    • As another measure to assure small enterprises an even field, they must also ensure that their logistical systems support all sellers in the same category equally.
    • As it happens, this attempt to straitjacket e-com platforms coincides with an antitrust probe of ‘unfair practices’ ascribed to Amazon and Flipkart.

    Issues with regulations

    • Some of these sound too vague and subjective to adopt.
    • Even if clear criteria are specified for their adoption and they actually serve to curtail brand favouritism, they would leave e-com majors with too little autonomy to devise strategies of service differentiation for a competitive edge.
    • The perception of e-com majors being bullies, however, does not seem very widely shared among their customers, few of whom complain of either insufficient rivalry or choice deprivation online. 

    Conclusion

    What e-com users are now at risk of suffering, though, is a hobbled industry. If all e-com websites are forced into a statist mould meant for generic market platforms, these companies could lose their ability to set themselves apart, outperform rivals and serve the market’s ultimate cause.

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  • J&K – The issues around the state

    Delimitation in Jammu and Kashmir: how, why

    | Polity | Mains Paper 2: Federalism

    The Union government’s invitation to 14 key political leaders from Jammu and Kashmir for a meeting with the PM has led to speculation about the possible scheduling of the Assembly elections. However, the delimitation of constituencies is crucial for kick-starting any political process in J&K.

    What is Delimitation and why is it needed?

    • Delimitation is the act of redrawing boundaries of an Assembly or Lok Sabha seat to represent changes in population over time.
    • This exercise is carried out by a Delimitation Commission, whose orders have the force of law and cannot be questioned before any court.
    • The objective is to redraw boundaries (based on the data of the last Census) in a way so that the population of all seats, as far as practicable, be the same throughout the State.
    • Aside from changing the limits of a constituency, the process may result in change in the number of seats in a state.

    Do not forget to answer this PYQ in the comment box:

    Q.With reference to the Delimitation Commission, consider the following statements:

    1. The orders of the Delimitation Commission cannot be challenged in a Court of Law.
    2. When the orders of the Delimitation Commission are laid before the Lok Sabha or State Legislative Assembly, they cannot affect any modifications in the orders.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

    How often has delimitation been carried out in J&K?

    • Delimitation exercises in J&K in the past have been slightly different from those in the rest of the country because of the region’s special status — which was scrapped by the Centre in August 2019.
    • Until then, the delimitation of Lok Sabha seats in J&K was governed by the Constitution of India, but the delimitation of the state’s Assembly was governed by the J&K Constitution and J&K Representation of the People Act, 1957.
    • Assembly seats in J&K were delimited in 1963, 1973 and 1995.
    • The last exercise was conducted by the Justice (retired) K K Gupta Commission when the state was under President’s Rule and was based on the 1981 census, which formed the basis of the state elections in 1996.
    • There was no census in the state in 1991 and no Delimitation Commission was set up by the state government after the 2001 census as the J&K Assembly passed a law putting a freeze until 2026.

    Why is it in the news again?

    • After the abrogation of J&K’s special status in 2019, the delimitation of Lok Sabha and Assembly seats in the newly-created UT would be as per the provisions of the Indian Constitution.
    • On March 6, 2020, the government set up the Delimitation Commission, headed by retired Supreme Court judge Ranjana Prakash Desai, which was tasked with winding up delimitation in J&K in a year.
    • As per the J&K Reorganization Bill, the number of Assembly seats in J&K would increase from 107 to 114, which is expected to benefit the Jammu region.

    What is the status of this 2020 Delimitation?

    • Although the Commission was tasked to finish delimitation in a year, on March 4 this year, it was granted a year’s extension.
    • This was done at the request of the panel members since it couldn’t make much progress due to the Covid-19-induced shutdown across the country.

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  • Important Judgements In News

    Significance of recent judgments in UAPA cases

    op-ed snap | Polity | Mains Paper 2: Parliament & State Legislatures

    Recent judgements involving UAPA highlights the issues with certain provisions resulting in long years of undertrial imprisonment.

    Context

    In the past week, three seminal judgments involving the Unlawful Activities (Prevention) Act, 1967 (UAPA) have been delivered. While these judgments are welcome developments, they also remind us that thousands continue to languish under the UAPA regime.

    Issues with the provisions of UAPA

    • Originally enacted in 1967, the UAPA was amended to be modelled as an anti-terror law in 2004 and 2008.
    • The period of detention is increased, enlarging the period of custody prior to which default bail cannot be granted.
    • Regular bail is subject to the satisfaction of the judge that no prima facie case exists.
    • Bail apart, the dilatory trial procedures ensure lengthy periods of pre-trial incarceration for the accused who are presumed guilty of heinous terror crimes.

    NCRB data reveal long years of undertrial imprisonment

    • As per the National Crime Records Bureau (NCRB) data, a total of 4,231 FIRs were filed under various sections of the UAPA between 2016 and 2019.
    •  While the number of acquittals is low,  the real picture emerges in the pendency rates.
    • The pendency rate at the level of police investigation is very high, at an average of 83 per cent.
    • This denotes that chargesheets are filed by the police on an average in about 17 per cent of the total cases taken up for investigation.
    • The rate of pendency at the level of trial is at an average of 95.5 per cent.
    • This indicates that trials are completed every year in less than 5 per cent cases.

    What did the courts say in various judgements?

    • The Supreme Court, in Union of India v K A Najeeb, held that despite restrictions on bail under the UAPA, constitutional courts can still grant bail on the grounds that the fundamental rights of the accused have been violated.
    • In Asif Iqbal Tanha v State of NCT of Delhi, the Delhi High Court took this reasoning a step further, holding that it would not be desirable for courts to wait till the accused’s rights to a speedy trial are entirely vitiated before they are set at liberty.
    • Courts should exercise foresight, and in cases with hundreds of prosecution witnesses where a trial will not see a conclusion for years to come, courts should apply the principles laid down in Najeeb.

    Way forward

    •  Even within the constraints of the UAPA, much can be achieved if a responsive and independent judiciary follows the basic principles of natural justice and due process.
    • But access to the judiciary remains limited for most of the thousands incarcerated under this widely-used law.

    Conclusion

    The governments need to consider the issue of pendency of cases under UAPA and take steps to address the issues by either repealing certain provisions or ensuring speedy trials.

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  • Genetically Modified (GM) crops – cotton, mustards, etc.

    BT Cotton adoption in Punjab has resulted in net economic, environmental benefits

    | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Amid the perpetual debate surrounding BT cotton’s positive and negative impacts, a recent study has said its adoption in Punjab in the past over a decade has resulted in net economic and environmental benefits.

    Background

    • BT (Bacillus thuringiensis) cotton has been commercially grown in India for the past 19 years.
    • The Genetic Engineering Approval Committee (GEAC) approved the release of BT cotton for commercial cultivation in 2002 in western and southern parts of the country.
    • In Punjab, BT cotton was released for cultivation in 2005.
    • Before the release, it was adopted by 72% farmers on 22% of the cotton area. However, a lot of questions have been raised recently on its impact.

    BT cotton in India

    • BT cotton is a genetically modified organism (GMO) or genetically modified pest resistant plant cotton variety, which produces an insecticide to combat bollworm.
    • Strains of the bacterium Bacillus thuringiensis produce over 200 different BT toxins, each harmful to different insects.
    • Most notably, BT toxins are insecticidal to the larvae of moths and butterflies, beetles, cotton bollworms and flies but are harmless to other forms of life.
    • In 2002, a joint venture between Monsanto and Mahyco introduced BT cotton to India.
    • In 2011, India grew the largest GM cotton crop at 10.6 million hectares.

    Issues with BT cotton

    • In India, BT cotton has been enveloped in controversies due to its supposed failure to reduce the need for pesticides and increase yield.
    • The link between the introduction of BT cotton to India and a surge in farmer suicides has been refuted by other studies with decreased farmer suicides since BT cotton was introduced.
    • BT cotton accounts for 93% of cotton grown in India.
    • Maharashtra banned the sale and distribution of BT cotton in 2012, to promote local Indian seeds, which demand less water, fertilizers and pesticide input.

    What is the new study about?

    Success of BT in Punjab

    • The research was funded by the Agricultural Extension Division of the Indian Council of Agricultural Research under extramural project “Impact evaluation of integrated pest management technologies”.
    • It found that since the commercialization of BT cotton:
    1. there has been reduction in insecticide use by volume and applications,
    2. decline in environmental and human health impact associated with insecticide use,
    3. more reduction in the use of highly hazardous and riskiest insecticides, and
    4. reduction in the expenses associated with insecticide use.
    5. Cotton yields in the past 13 years have been stable, the only exception being 2015

    Now its’ time to answer this PYQ in the comment box:

    Q.In India, the use of carbofuran, methyl parathion, phorate and triazophos is viewed with apprehension. These chemicals are used as: (CSP 2017)

    (a) Pesticides in agriculture

    (b) Preservatives in processed foods

    (c) Fruit-ripening agents

    (d) Moisturizing agents in cosmetics

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  • Censorship Issues – Censor Board, Banning films, etc

    What govt proposes to change in film certification

    Bills/Act/Laws | Governance | Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    The Centre has recently released the draft Cinematograph (Amendment) Bill 2021 to the general public for comments.

    Cinematograph (Amendment) Bill 2021

    • The new draft proposes to amend the Cinematograph Act of 1952 with some provisions.
    • It seeks to give the Centre “revisionary powers” and enable it to “re-examine” films already cleared by the Central Board of Film Certification (CBFC).

    A look at what the draft proposes to change:

    (a) Revision of certification

    • This will equip the Centre with revisionary powers on account of violation of Section 5B(1) (principles for guidance in certifying films).
    • The current Act, in Section 6, already equips the Centre to call for records of proceedings in relation to a film’s certification.
    • The Ministry of I&B explained that the proposed revision “means that the Central Government, if the situation so warranted, has the power to reverse the decision of the Board”.
    • Currently, because of a judgment by the Karnataka High Court, which was upheld by the Supreme Court in November 2020, the Centre cannot use its revisionary powers on films that have already been granted a certificate by the CBFC.

    Issues

    • The draft comes shortly after the abolition of the Film Certificate Appellate Tribunal, which was the last point of appeal for filmmakers against the certificate granted to their film.
    • The draft has been criticized by filmmakers and term it a “super censor”.

    (b) Age-based certification

    • The draft proposes to introduce age-based categorisation and classification. Currently, films are certified into three categories — ‘U’ for unrestricted public exhibition; ‘U/A’ that requires parental guidance for children under 12; and ‘A’ for adult films.
    • The new draft proposes to divide the categories into further age-based groups: U/A 7+, U/A 13+ and U/A 16+.
    • This proposed age classification for films echoes the new IT rules for streaming platforms.

    (c) Provision against piracy

    • The Ministry noted that at present, there are no enabling provisions to check film piracy in the Cinematograph Act, 1952.
    • The draft proposes to add Section 6AA that will prohibit unauthorized recording.
    • The proposed section states, no person shall, without the written authorization of the author, be permitted to make an audio-visual recording device.
    • Violation shall be punishable with imprisonment for a term of not less than three months and may extend to three years and with a fine which shall not be less than Rs 3 lakh which may extend to 5 per cent of the audited gross production cost or with both.

    (d) Eternal certificate

    • The draft proposes to certify films for perpetuity.
    • Currently, a certificate issued by the CBFC is valid only for 10 years.

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  • Monsoon Updates

    Retreating Monsoon is a global phenomenon: Study

    Prelims Only | Enviro & Biodiversity | Mains Paper 1: Important Geophysical Phenomena

    Rainfall during retreating monsoon, which parts of South India experience every year, is not a local anomaly and is global in nature and scale, according to a recent study by the University of Sydney.

    What is Retreating Monsoon?

    • In India, retreating monsoon is the withdrawal of south-west monsoon winds from North India.
    • The withdrawal is gradual and takes about three months.
    • With the retreat of the monsoons, the clouds disappear and the sky becomes clear. The day temperature starts falling steeply.
    • Monsoon rains weaken all over India except few southeastern states.
    • It is helpful in Rabi crop cultivation.

    What has the research found?

    • The research has identified regions in the northern hemisphere that receive the bulk of the rainfall during September, October and November and southern hemisphere that receive most of the rainfall from March to August.
    • The discovery that these are part of a global pattern and not one-off occurrences means they can be systematically studied, which will help understand how these communities could be affected by climate change.
    • Peninsular India and parts of South-East Asia are among the eight regions examined in the study.

    Factors affecting the retreat

    • The eight global regions identified by the study that receive most of their rainfall after summer, have several things in common.
    • They lie on the eastern fringes of landmasses and are in close proximity to mountain ranges with modest heights.

    Two predominant factors cause the phenomenon:

    • First, the low mountain range in each region runs from north to south, shielding it from west-bound winds that trigger summer monsoon.
    • After summer, the range aids in the ‘orographic lift’ or rising of east-bound air mass from a lower to higher elevation, forming clouds and resulting in rain.
    • The second factor is atmospheric convection or vertical movement of air.
    • As the earth is heated by the sun, different surfaces absorb different amounts of energy and convection may occur where the surface heats up very rapidly.
    • As the surface warms, it heats the overlying air, which gradually becomes less dense than the surrounding air and begins to rise.
    • This condition is more favorable from September to February because of the role played by sea surface temperature or water temperature.

    Answer this PYQ in the comment box:

    Q.The seasonal reversal of winds is the typical characteristic of:

    (a) Equatorial climate

    (b) Mediterranean climate

    (c) Monsoon climate

    (d) All of the above climates

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