IT AND COMPUTER

Net Neutrality:
In recent times, there have been some instances like zero rating plan of Airtel, free basics. org
floated by Mark Zuckerberg, which have raised the question of Net Neutrality violation.
The principles of Net Neutrality are:
(i) Same Speed
(ii) Same cost
(iii) Equal access
In the debate on Net Neutrality, there are 4 stakeholders:
(a) Government
(b) Subscribers
(c) Mobile/Internet Service Provider
(d) OTT (Over The Top)
 The argument of Internet service provider or Telecom companies was that they invest in
infra, pay for the spectrum and the profits are cornered by OTT Companies. They should
be allowed to share the profit, which was ruled out by the government is it would increase
the digital divide, Government told the telecom companies, that they should reduce the
price through other means.
 The supporters of freebasic.org argues that some internet is better that no internet. The
plan was the subscribers of a particular Telecom company will have free access to 17
infotainment sites. If the subscriber will visit the other infotainment site, then they have
to pay for it.
 The opponents of free basics organed that – it will lead to splinternet.
 Then the advocates of free basics. org argued it that it will not be always like this.
Gradually the users will move towards paid internet. Then save the internet society said,
“it will hurt the startup culture” and sometime later, “ Combridge Analytica (Data
Feduciary to Facebook) Scandal” Came to light – In that the data of FB users was sold in
some cases to the political parties, That raises the question of possible impact on the
electoral process.
 TRAI, then asked the users about their choices and overwhelming majority of the
respondents said no to the Zuckerbergs plan and after that it has issued the gridlines
which has banned “paid prioritizations” data throttling, Data Blocking. The exceptions
are – emergency services, closed electronic communication groups. In case of violation,
there can be a penalty of Rs. 50,000 per day, which should not exceed Rs. 50 lakh in total.
 There is no consistency in international benchmarks, as in USA and UK, paid prioritization
is legal. As far as India is concerned, the use of universal service obligation fund – 5% of
the total is taken by Government for rural, Telecom infra BHARAT net optic fibre project.
 Another emerging option is, satellite based internet services.

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Artificial Intelligence
 Intelligence is our ability to adjust in our environment. The environment could be physical,
social, and psychological. Intelligence is measured with IQ, through the formula,
Mental age
IQ   100
Chron o log ical age
 There are two major issues, with the concept of IQ.
 It is not a true reflector of the potential.
 The IQ score declines with age. It has been replaced by emotional intelligence.
 Allen Turing, a British Mathematician, said that computers are the only m/c capable of
demonstrating human behavior. AI includes voice recognition, speech recognition, pattern
recognition, game playing etc.
There are two streams:
Narrow AI: When the AI system is able to perform better than Human beings in one or two
domains. e.g., Bluegene of IBM
Generalized AI: Also known as Singularity.
 When the AI systems are able to perform better than Human beings in all the domains
 The objective of generalized AI is to realize the ultimate goal of robotics. i.e, Aritifical person
in the form of Humanoid robots.
The other objectives are
1. Transhumanism: Taking Humanity to next level, a society where routine activities are
out-sourced to the machine’s and the people are following their passion. But in a country
like India with poor skillset of the people, there is a possibility of polarization of the
skillset, Because in 4th Industrial revolution. Low skill will result in low pay and High skill
will result in High pay. In that scenario, mid-level jobs will be gone. Before pushing for
AI in labour intensive industries, the skills should be upgraded.
2. The AI systems should be able to understand the non-verbal comments.
3. They should use the same tools as used by the Human beings
Under Digital India, AI is promoted through multiple routes- Cyber physical System Robot
using AI.
Obstacles in the emergence of generalized AI:
 Lack of natural language ability, which is responsible for decision making, judgments, critical
analysis
 These system have not yet passed Turing Test. i.e., When Human beings will fail to
distinguish between work of man and robot.
 They cannot move from the one architecture to another.
 The information processing ability is very high

Evolution of AI
 Artificial Neutral N/W: These structures resembles the working of Neuron. They have in I/P
and O/P layer with multiple processing layers in B/W

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 M/C Learning: It is the ability to learn from data or making m/c’s to perform the tasks which
comes naturally to human beings. In recent time, m/c learning has gain lot of currency, due
to increased data generation, better computing, right from e-commerce, social media,
medicine discovery, health care, agriculture, transportation, FINTECH, Education (Phone
Pay, BHIMAPP) etc.
 Eg. M/C learning & Agriculture: Use of M/C learning will be one of dimension of smart
agriculture for eg., using drones for crop monitoring that requires the processing of the
information to be communicated to the farmers, there is a proposal to have blockchain used
in the digitization of soil health cord. M/C learning tools will communicate the data to and
fro to have optimum utilization of the land resource. If done comprehensively, it can be a path
for adapting agriculture to climate change.
E.g.: M/C learning & Health Care:
 NITI Agog has started a project called “Imaging Biobank” to have a repository of the
scanned images of the cancer patients uploaded on the cloud. When the new scanned image
of a new patient is uploaded the machine learning tool will overlap if with the existing image
in the database.
Machine learning is of various types:
(a) Supervised Machine learning : Uses labelled data
(b) Unsupervised Machine learning: Uses unlabeled data
(c) Semi supervised Machine learning : Uses both labelled and unlabeled data
(d) Reinforcement: Used in game playing
Deep learning: It is based on deep Neutral N/W, which involves more processing layers b/w
I/P and O/P layers.
The objective is to develop the AI system, showing the same capabilities as the human beings. In
deep learning, the performance keeps on improving with the increase in quantity of data whereas
in machine learning, it plateaus after some time.

Deep learning
Performance Machine learning

Data
 To further deep learning, the focus has shifted towards Neuromorphic computing. 1st
computer of this type – spiking Neutral N/W Architecture Spinnaker.
 The deep learning will shift computer power towards the user in form of Edge computing.
Kamakoti Panel on AI: Minute of commerce appointed a panel under V. Kamakoti (IIT Madras.)
The mandate was in the form of 3 questions.
(a) What should be the role of Government in AI?
(b) How the jobs can be created through AI?
(c) How Quality of life of the people can be improved by using AI?

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Recommendations are:-
(a) There should be an interminesterial national AI mission for 5 years with the corpus of 1200
crores.
(b) Establish center of excellence to reskill and up skill the people
(c) They have identified multiple sectors to create jobs like healthcare, education, agriculture,
food processing, manufacturing, FINTech, Environment, people with disability, etc.
NITI Aayog has also presented a paper for the strategy on AI. They have suggested a citizen
centric approach for using AI.
 Core & ICIAI: Centre for Research excellence and Int. center for transformational AI. (ii)
Scholarships
 IPR
 Protection of IPR: (a) Laws and; (b) Court
 Assess the changing nature of jobs
 Reskill & Up skill the Human Resource

DATA LOCALISATION

The domestic initiatives for data localization are:

 Personal data Potential bill: Drafted by Justice B.N. Srikrishnan
 DISHA (dig. info security in healthcare) Act.
 Drugs and Cosmetic Act Amendment: To mandate that e-pharmacies have to keep their
portal in India
 RBI circular to MNCs (banking companies): To keep one copy of financial transaction within
the boundaries of the country.
 The new e-commerce policy: It has incentivized data storage in the country.
 Data localization is keeping the data of the residents of a country within the boundaries –
creation of digital infrastructure, next generation jobs in IT sector. It will have other benefits
as well like
a. Lesser probability of foreign surveillance
b. Law enforcement will be easy
c. The cost of law enforcement will reduce
d. Evidence based policy making
e. Using genome sequencing for pandemic preparedness
f. Improvement in the quality of research
g. Better targeted marketing
The possible negative outcomes are:
(a) Data localization is against spirit of globalization
(b) Internet speed and cost should determine the flow of data rather than National Boundaries.
(c) If data is stored in India, but the encryption key may be abroad with the CEO then Data
localization is of no use.

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(d) If implemented stringently, data localization will hurt ease of doing business and inverter
might stay away.
(e) It will go against Indian companies going global. In the competitive markets, if they are
asked to take up data localization, their chances of survival will reduce.
Personal data potential Bill:
 The bill presented in the parliament is different from the one drafted by Justice B.N. Srikrishna
committee none notable change is the dilution of data localization
Personal data has been categorized into 3 types
(a) General Personnel Data
(b) Sensitive Personnel Data
 Health information
 Financial details
 Religious believes
 Political ideologies
 Sexual orientation
In the bill drafted by Justice B.N. Srikrishna Committee, this data was not supposed to be moved
out. But now it can be transferred abroad with the consent of the individual.
(c) Critical Personal Data
 It is important from the security point of view to be define by government from time to time.
It can never be transferred outside the country.
 The bill has a provision for Data Protection Authority to address the grievance of the
individual, it has the powers to penalize the companies upto 4% of their global turnover.
 It has introduced the concept of “Right to be forgotten”, that goes against investigative
journalism, as it will allow individual to stop the publication of incriminating material.
 There is a provision that social network sites can conduct user identification and KYC
 It has introduced the concept like, “ Data Principle”, ”Data Fiduciary”, “Right to Erase”,
Right to Correction”.

COMPUTING

Quantum Computing:
 It is based on quantum mechanical model of the atom the objective is to use super cooled
atoms, ions, photons to store and retrieve the information.
 The Quantum computers are looking to replace supercomputers with desktop sized
computers. They will be known for data crunching. Recently google demonstrated “Quantum
supremacy” by performing a calculation that will required 10,000 years to be performed by a
supercomputer of IBM.

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Quantum computing is based on following principles:
(1) Entanglement: When two quantum entities are brought closed, so that w/o knowing the
details of the one, the other can’t be defined that is called entanglement
 One of the noble prize in Physics was awarded to Serge Haroche and David wineland for
demonstrating quantum entanglement between a lead ion and a photon oscillating
between super conducting mirrors.
Entanglement has multiple application like
(i) Quantum communication: China launched a satellite QUESS, MICIUS using quantum
entanglement
(ii) Quantum clock: They will replace atomic clocks. If such a clock would have been switched on
at the time of Big Bang, then till today, then it might have shown error of only 5 seconds.
(ii) Encryption using quantum key distribution: It will enhance data security. Quantum key
distribution employs Hasenburg’s uncertainty principle and No cloning Theorem which says
it is impossible to create copy of entangled particle.
(2) Superposition: The possibility of a particle existing in 2 states simultaneously. To explain
this phenomena, Schrodinger used the analogy of “CAT in the Box” Paradox.
(3) Qubits/ Quantum bits.
 The capacity of quantum computers is expressed in qubits, i.e, all the possible
combinations of 0 and 1 can exists simultaneously, i.e, the computing power increases
exponentially.
 Recently, QUTRIT was also demonstrated – Three states combining to give multiple
possibilities.
Quantum computing related initiatives in India:
(i) Department of S and T has started QUEST (Quantum Enabled S and T). Besides that,
National mission on Quantum Computing was also announced with corpus of Rs.1200
crore.
(ii) Tata Institute of Fundamental Research has started QUMAC (Quantum Measurement
and control), Raman Research Institute has developed QKDSIM (Quantum key
distribution simulator)
(iii) IIT Rurkee and C-DAC has also developed Quantum simulates for the testing of
Quantum devices
(iv) ISRO is also working on Quantum key distribution.
(v) MEITY has tied up with Amazon web service (cloud) to use their cloud computing
facility for Quantum research by the Government institutes. (vi) There have been
institutional collaboration as well: For eg., with Italy, USA
Startups:
 QUNU LABS
 Entanglement Partners
 YZQ
 Automatski
 IBM has also started its quantum facility in Bengaluru

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Challenges:
(i) 43% of the patents are with China. India and USA have allocated around $ 1.2 Billon.
Which is less compared to China.
(ii) Lack of Private sector participation
(iii) Lack of quantum roadmap and coordination
(iv) Insufficient Hardware manufacturing
(v) Duplication of Research (Focus on Only one aspect)
(vi) There is a need for an organization like ISRO or BARC to coordinate the activities and
have the better utilization of men and material resources.

NEUROMORPHIC COMPUTING

• They are modelled on the working of Human brain. The underlying principle is – “Spiking
Neutral network” i.e., the potential difference in the neuron must reach certain level, then
only a nerve impulse will be generated.
• Human brain is event driven, i.e, motivated by outcomes of its action. It is known for
working within the constraints known as constraint satisfaction.
• In 2005, Blue Brain Project was started to have a simulation model of the working of Rat’s
Brain, which was later followed by Human Brain Project to develop the virtual model of
the working of Human Brain. It was supported by EU. This project is the basis of
development of the 1st Neuromorphic computer – Spinnaker. i.e., spiking Neural N/w
Architecture” It has been used in a robot called –SPOMINI BOT.
• IBM and DARPA started SYNAPSE (System Neuromorphic adaptive plastic Scalable
Electronics). IBM and USA air force are having a BLUE RAVEN Project. Besides them,
there is Brain scales. IBM developed the 1st Neuromorphic chip – TRUE NORTH. The
multifold objective behind Neuromorphic computing are
(a) To further evolve AI (deep learning)
(b) To develop new types of computing languages.
(c) To develop new types of storage system
(d) To push the Edge Computing
AI Specially M/C learning, deep learning, virtual reality, Augmented reality, all will benefit
from this approach.

DNA computing Biological Computing/ Organic computing/Liquid Computing

The concept was given by Leonard Adlemen. The benefits of DNA computing are:
(i) Enormous data storage capacity: Igm can store 1014 MB of data
(ii) Inbuilt parallel processing
(iii) Energy efficiency
DNA computing has been used as a proof of concept in the following instances:
(a) To calculate square root of some numbers

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 (b) To identify prime numbers in the range of 1 to 63
(c) To elect a leader
(d) To solve Hamiltonian path problem or travelling salesman problem.
(e) To diagnose the infection and prescribe the treatment.
 DNA computing operates on the principle of complementarity i.e, Adenine combining
with thymine and Cytosine with Guanine.
 The electrons are replaced by the chemical bonds, whereas semiconductors are
replaced by Nitrogenous basis
 Multiple half strands and DNA polymerase are released in the solution. Each half
strand is acting as I/P, when they combine to give a DNA molecule that is O/P which
is separated by GEL ELECTROPHORESIS.
 The long term perspective is to bring convergence of Biology, Chemistry and
Information Technology (4th Industrial Revolution) eg., to develop the systems capable
of identifying the target and interacting with their surroundings. They will be self-
replicating, self-repairing, responsive and evolving.
 In an experiment, Eric Winfree and Seamen Prepared 2D squares from DNA – When
put in solution, they demonstrated self-assembly.
Challenge: How to demonstrate the use of DNA in conventional desktop type computing at
a large scale.
As of now, it is confined only to labs and only domain specialists have used it.
OPTICAL COMPUTING

It is based on Photonics. i.e, using light to store and retrieve the information. The use of light
offers the following advantages.
(i) It is faster than current system will be much better.
(ii) It does not require any medium to travel  systems will be compact.
(iii) There is no heating effect ……. therefore efficiency will be more.
Optical computers will be Binary using 0 and 1. The state of constructive interference
will give 1, whereas destructive interface gives 0. There is no pure optical device. As of
now there are only Hybrid device using light current.
(1) Cloud Computing: Cloud mean internet. It is one of the important pillars of the current
economics system, which has moved considerably towards digitization. The eg. are – Amazon
web services, Azure of Microsoft etc.
Cloud computing is cost effective, scalable and secure. The GOI has Meghdoot Project for
cloud computing, implemented by C-DAC (Pune).
Cloud Computing includes – Software as a service
For eg. (i) Drop Box: The individual/ organizations getting the soft wares according to pay
per use.
(2) Platform as a service: For eg. Red hat Open shift
Those who are developing the apps, requires multiple software to test their product. This
option under cloud computing offer them this service. It allows them flexibility at lower cost.
They can release their product early as they do not have to purchase software stacks.

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(3) Infrastructure as a service:
It is about providing computing resources like servers to the organizations to fulfil their
requirement. It includes server less computing. In that, all the computing requirement are
outsourced.
(4) Function as a service:
In this approach, the service provider executes the functions if the mutual consent was there
between the service provider and the client.
 The cloud could be public, private or hybrid. There are Big challenges emerging in
cloud computing.
As requirement of Bandwidth increase because of data which is flowing the latency issues
emerges. Less the services get hampered which may lead to outages.
FOG computing: It is an interface between Edge computing and cloud computing. The
unnecessary data generated by the edge device is filtered and only relevant information is
passed to the cloud
DEW computing: It offers the option of accessing the data stored on the cloud in the absence
of internet. For eg. DROPBOX.
Sky Computing: It is the next stage of cloud computing based on the integration of various
cloud service providers to harness their potential by allowing users to have seamless
transition from one service provider to another.
Edge computing: It is an extension of cloud computing.
For eg. Drones used in crop monitoring.
Wearable digital devices- One plus.
Oil rigs, Smart grid, and Driverless car.
 In cloud computing there are brand width issues, latency problem and too much of data
flow that is why, the edge computing is looking to shift information processing ability
towards the end user.
 It offers data sovereignty, data security and autonomy
 The emergence of AI, Virtual Reality, Argument Reality, and IOT have fuelled the
growth of edge computing.
GRID COMPUTING: Research oriented
 It involves specialized organization to join a N/W for solving a common problem For eg.
GARUDA PROJECT: It connected IITs, Industrial Institute of Science, AIIMS to solve
different scientific problems.
 The International eg., are LHC Grid and SETI (Search for extra-terrestrial intelligence).
MOBILE TECHNOLOGY

(1) Frequencies Division Multiple Axis: FDMA

The spectrum allotted to the operator is divided into frequency slots which are then given
to the users. It is not a very effective mode as the no of users that can accommodated is
limited.

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(2) Time Division Multiple Axis: TDMA
The spectrum is divided into frequency slots which is subdivided into the slots. These
time slots are then assigned to the users. In the process of making the call, the users are
moved from one time slot to another w/o disturbing the call.
(3) Code Division Multiple Axis: CDMA
It is the most efficient way of frequency, utilization which allows all users to use the entire
spectrum simultaneously.
Terminologies Related to Mobile Spectrum:
(i) Unified Licensing Regime:
India has 22 Telecom circles under 1 licence, an operator can provide all types of telecom
services in all the circles.
(ii) Administratively Allocated Spectrum:
When the mobile services started, the use of particular band of spectrum was linked
with a particular technology.
For e.g., CDMA & 800 MHz were tied up
900 1800 MHz were used for GSM (FDMA + TDMA).
(iii) Liberalizations of spectrum:
 The operator is free to use any spectrum to provide any generation of mobile
services.
 It was introduced by the National Telecom Policy of 2012.
(iv) Spectrum sharing:
Spectrum sharing was introduced in 2015 to address the fragmentation of the spectrum
& also to provide on exit route to loss making telecom companies. Because of this
mechanism, telecom operators do not have to wait for spectrum auction by govt. They
can merge their allotted bands with the other operators in the same circle, provided
that they have same type of spectrum (Administrative or liberalised)

(v) Spectrum Refarming/Reframing:

In the initial phase, telecom licenses were allocated for 2G services, In 800 & 900 band
when these licenses started expiring, govt. told 2G service provider that they will be
shifted to 1800 Bands & the vacated bands will be used for 3G & 4G services.

(vi) Delinking of Licensing from spectrum allocation:

In 2012, SC cancelled 122 Telecom Licences & asked that the future allocation of
spectrum should be through open auction. Telecom companies have to pay a fixed
amount to get the license & participate in open auction to get the spectrum. Once they
get the spectrum, they’ve to share the revenue 8% in high revenue generating area &
6.5% in Low revenue generating area.

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  Generations of Mobile Technician:
 1G: Not Launched in India.
 It was based on FDMA
 2G: Allowed voice & non-voice data.

 2.5 G: Started the era of digital convergence i.e., mobile become a

multimedia platform because of the availability of internet. The technology
used was GPRS (General Packet Radio Service).
 2.75G: It has faster internet speed. The technology was EDGE (Enhanced
data rate for GSM evolution)

 3G: Internet speed was more faster. Distinguishing feature was video
calling.

 4G : Long Term Evolution (LTE)

 It has 2 technologies – (1) FDD (Frequency Division Duplex) TDD (Time Division
Duplex)

 In frequency div. duplex, the operator uses paired spectrum. One for uplinking,
another for down linking.

 In TDD, unpaired spectrum is used, i.e., same band is used for uplinking &
downlinking. To avoid the interference, the operator has to keep a time gap.

5G :

 It is a general purpose Technology like electricity.

 It will be the basis of Fourth Industrial Revolution. The characteristics are:

 Enhanced Mobile Broadband: In urban areas, the internet speed will be 10 gbps
whereas in rural areas, it will be 1 gbps.
 Latency will be less than 1 mili sec.
 80% internet through optic fibre.
 99.9% of the area to be covered.
Open Radio Access Network: The equipment manufacturers are free to use any frequency
of any operator for their services.
 The world radio conference organized by ITU on 5G, identified 2 frequency Bands, i.e.,
upto 5 GHz & from 24 GHz in the millimeter wave Band (30 GHz to 300 GHz).
 The spectrum for 5G is classified in three frequency categories.
(a) Low Band: The frequency used is < 1 GHz & the internet speed is around 100 mbps. (B)
Mid Band: Frequency - 2.5 to 3.5 GHz
Speed - Can reach 1 gbps.

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 (b) High Band: from 24 GHz onwards.
It provides highest speed, but min. coverage.
TRAI, has identified 2 frequency slots for 5G trial
(a) 3.3 to 3.67 GHz
(b) 24.25 to 28.5 GHz
The base price for I MHz is 492 crore & the operator will req. 100 MHz to provide this type of
service.
The low & mid bands are already crowded.
(a) Spectrum availability is a challenge.
(b) In High band, attenuation of the frequency will be more.

 Security Concerns:
Initially Huawei was invited to participate in the trial, but later it was excluded, because the
proximity of this company with Chinese govt. The Counter Espionage Law & National
Intelligence law of china has mandated the sharing of the data with the govt.
 Indigenization of Technician:
At IIT madras, Dept. of Telecommunication, funded a 5G technician demonstration project,
which was successful. There was participation of IIT Hyderabad as well. Later the project was
stopped.
 Societal Applications & Governance Through 5G:
Dept. of Telecom has constituted diff. working group for the use of 5G technology in the areas
like – smart Grid, Transport, Health Care, Education, Waste Water Treatment, Industry 4.0,
Agriculture, Fintech.
Internet Governance:
 In 1980’s “Dept of Defence”, USA developed ARPA Net which later evolved into Internet.
In 1997, (Internet Corporation of assigned names & NOS) ICANN was created. It had a
contractual relationship with USA depth of commerce.
 ICANN is managed by board governors, elected. According to the principle of Multi Stake
Holderism. Below ICANN, there is IANA. (Internet Assigned No. Authority), which
operates through regional internet registries to allocate domain names.
 After the revelation of NSA PRISM, a prog of USA for the electronic surveillance of other
leaders in difference countries, there was a demand to struck down the contract between
ICANN & USA dept. of commerce.

To evolve the future architecture, 2 models were discussed-

(A) Multi stakeholder Model of Governance. (MSg)

(B) Multilateral model of governance. (MLg)

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(A) MSg:
UNGA created world summit on info. Society, which adopted TUNIS Agenda & created IGF
(Internet governance forum) representing, multi-stake holderism. It is an open system, works
through consensus, the structure is horizontal. Adopted tool box approach for problem
solving.
Internet was projected as a tool for socio-economics transformation. It was supported by the
majority of the countries. Finally, ICANN was brought under – IGF.
(B) Multilateral model:
It has proposed that ICANN to be brought under – ITU. The structure was Hierarchical,
closed, decisions through agreement & treaties. Internet was mostly seen as a tool for cyber
security.
Block chain Technology & Crypto Currency:
 Block chain is one of the emerging technology. It will have an impact on financial
institution, society, governance, data security & above all-economy.
 In block chain technology, the data is encrypted through the process called HASHING. In
this technology, data of variable lengths will always produce similar HASH in terms of
data quantity. Thus, it will be impossible to reverse the HASH into information through
hacking.
 Block chain is a distributed Ledger technology: The participants called NODES verify the
information through MINING. In process, the MINERS are rewarded for their efforts in
the form of crypto currency.
 The block chain technology functions on the principle of distributed consensus. i.e., the
participants have to agree, then only information can be altered.
The characteristics are (Block chain tech)
1. Programmable
2. Decentralised
3. Distributed
4. Seemed
5. Immutable (Can’t be unilaterally changed)
6. Transparent
7. Time stamped
8. Auditable
9. Accountable
10. Verify able

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 Transaction is required Block representing that Nodes receives
and Authenticated Transaction created the Block

Block is added to Nodes validates

Node is rewarded
the chain the Transaction

Updated information
sent to all the nodes
There are multiple principles of issuing crypto currency

1. Proof of work: i.e., miner has to validate a transaction to get the reward.
It leads to too much consumption of power. If Block chain tech is taken as a country then it
will be ranked 40th in the world in terms of power consumption.
There is definite ecological foot print. BCT BITCOIN is based on this approach.
2. Proof of Burn
In this system, the participants have to permanently forgo some crypto currencies. Then only
they can engage in mining.
3. Proof of Stake
The participants must own the crypto currencies to engage in mining. For eg. Ethereum,
Smart Contracts
4. Rule of Elapsed time
The participants have to follow a mandatory cooling off period, before they can again engage
in mining.
Terms associated with BITCOIN:
1. Satoshi: Smallest unit of BITCOIN.
2. Halving: The no. bitcoins are 21 million. After every 2,10,000 blocks are added the reward for
mining is reduced to half.

x 2 ,10 ,000 x
For eg.: x 
2 ,10 ,000
   ....
2 4
The graph for distribution of bitcoin is

21 mn

Crypto Currencies
According to “Committee for Banks of Int. Settlements” there are 3 characteristics of virtual
currencies:-

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(i) They are electronic.

(ii) They are peer to peer exchange (decentralised)

(iii) They are liability of none.

 The Bank for Int. settlement has also noted that 14% of Central Banks have already
adlopted the tech’ and 60% are in the process of doing so.

According to Ishwar S. Prasad, in his book “Future of Money”, countries can be classified into 3
types (Categories):-

(a) Outright Ban: China

(b) Passive Intolerance: They have not declared it illegal, but there is an attempt to discourage
the adoption of Crypto currency.

(c) 3rd category: Canada, Japan, USA permitted the use and simultaneously evolving the
regulation.

 El-Salvador has become the 1st country to declare Bit coin as legal tender and they are
building Bit coin city.
 USA, Canada, Japan, Thailand have permitted the selective use of Crypto currency.
 PM Modi at Sydney dialogue said that all the democratic nations should come together to
prevent the misuse of Crypto currency. The motive of the Crypto developers have been to
create a parallel eco-system, that will be quiet disturbing as the situation will be chaotic,
there will be no regulation and no accountability. The issues involved in virtual currencies
are :-

(i) High price volatility.

(ii) They can be used for financing terror or other illegal activities.
(iii) The cyber crimes committed are trans national in nature, Tracking the theft of Crypto
currencies will be challenging.
(iv) The FIAT currencies issued by central bank is against the assets. While in virtual currency,
that asset is missing. The question is what is the basis of valuation, other than demand and
supply.
RBI issued a circular to BAN that transaction arising from the trading of Crypto currencies. It
was challenged in SC and 3 questions were raised:-

(a) Is crypto currency a money?

(b) Whether RBI has power to regulate it?

(c) Whether RBI has exercised the proportionate use of its authority?

SC answered ‘yes’ for first 2 questions. But replied in “negative” to third. Since then, there is a
boom in Crypto trading in India. Almost 40,000 crores have been invested by millions.

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The other issues are:-
 Regulation of crypto exchanges.
 How to tax the income from crypto trade.
 Protecting interest of the investors.
 Lack of financial literacy among the investors.

CBDC
China has adopted Digital Renminbi, which is govt. sponsored. RBI has also initiated the process
of adopting the digital currency based on Block chain Technology. It will be one-to-one
exchangeable with the FIAT currency. The users will have to get an electronic wallet to receive
and transfer the CBDC. It has been forced by the circumstances – domestic and international as
most of the countries are moving in that direction. Therefore, to keep pace it has to be adopted.
At the same time, domestically, new technologies are being adopted by the people to ensure that
they are not left behind such a step is necessary.

CBDC will result in less transaction cost. They will be greater security, the chances of missed
transaction are less. The charges incurred for carrying out digital transaction is less. But, in
country like in India- where there is huge digital divide, the actual beneficiaries of crypto will be
very less.
NFT
They are unique digital codes based on block chain tech. They are used for establishing the
ownership of the digital copies of the original art. In online world, there are multiple copies of an
art copies. These tokens are used for identifying the original one. They are also used for offline to
online integration.

For e.g.: Amitabh Bachchan has used NFT for securing the digital copy of MADHUSHALA.
Pervasive computing:
 It is also known as ubiquitous computing. It will take computing to everyday objects in
the form of IOT. There are 3 factors responsible for the increased application/use of it:

(a) Standardization of internet.

(b) Micro Electronics have made it possible to embed them in small devices.

(c) Digital communication: Worldwide rooming, increased band. It will be used in

aviation, healthcare, wearable devices and retail.

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