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What are the laws - Data Protection, Data Transmission and Export and Data Encryption in India to operate a technology platform
The Information Technology Act, 2000 came into force on 17.10.2000 vide G.S.R No. 788(E) dated 17.10.2000 and for the first time, a legal definition of “Computer”, “Data”, “electronic record”, “Information” et al were provided. The said Act gave a legal recognition to the electronic records and digital signatures and in Chapter IX thereof provided for penalty and adjudication. Section 43 of the Act interalia provided that in case of unauthorised access, download or copying or damage to data etc, the person responsible shall be liable to pay damages by way of compensation not exceeding one crore rupees to the person affected.Apart from civil liability provided under Section 43, Chapter XI (Sections 63 to 78) of the Act of 2000 provided for criminal liability in cases of Tampering, Hacking, publishing or transmitting obscene material, misrepresentation etc. Apart from the same, Section 72 of the Act provided for penalty in case of bsignNow of confidentiality and privacy and laid that in case any person who has secured access to any electronic record, Data or information, discloses the same to any other person without obtaining the consent of the person concerned, he shall be punished with imprisonment upto two years or with fine upto Rupees one lakh or with both.However, the provisions of the Information Technology Act, 2000 were not adequate and the need for more stringent data protection measures were felt, the Information Technology (Amendment) Act, 2008 was enacted which came into force on 27.10.2009. The said Amendment Act brought in the concepts like cyber security in the statute book and widened the scope of digital signatures by replacing the words “electronic signature”. The amendment act also provided for secure electronic signatures and enjoined the central government to prescribe security procedures and practices for securing electronic records and signatures (Sections 15-16) The amendment Act also removed the cap of Rupees One Crore as earlier provided under Section 43 for damage to computer and computer systems and for unauthorised downloading/ copying of data. The said Amendment Act also introduced Section 43A which provides for compensation to be paid in case a body corporate fails to protect the data. Section 46 of the Act prescribes that the person affected has to approach the adjudicating officer appointed under Section 46 of the Act in case the claim for injury or damage does not exceed Rupees Five crores and the civil court in case, the claim exceeds Rupees Five crores. The amendment act also brought/ introduced several new provisions which provide for offenses such as identity theft, receiving stolen computer resource/ device, cheating, violation of privacy, cyber terrorism, pornography (Section 66A-F & 67A-C). The amendment act also brought in provisions directing intermediaries to protect the data/information and penalty has been prescribed for disclosure of information of information in bsignNow of lawful contract (Section 72A)With the enactment of the Amendment Act of 2008, India for the first time got statutory provisions dealing with data protection. However, as the ingredients of “sensitive personal data and information” as well as the “reasonable security practices and procedures” were yet to be prescribed by the Central Government, the Ministry of Communications and Information Technology vide Notification No. GSR 313 (E) dated 11th April 2011 made the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information ) Rules, 2011 (the said rules). Rule 3 of the said rules defines personal sensitive data or information and provides that the same may include information relating to password, financial information such as bank account or credit card details, health condition, medical records etc. Rule 4 enjoins every body corporate which receives or deals with information to provide a privacy policy. Rule 5 prescribes that every body corporate shall obtain consent in writing from the provider of the sensitive information regarding purpose of usage before collection of such information and such body corporate will not collect such information unless it is collected for a lawful purpose connected with the function or activity of such body corporate and collection of such information or data is necessary and once such data is collected, it shall not be retained for a period longer than what is required. Rule 6 provides that disclosure of the information to any third party shall require prior permission from the provider unless such disclosure has been agreed to in the contract between the body corporate and the provider or where the disclosure is necessary for compliance of a legal obligation. The Body corporate has been barred to publish sensitive information and the third parties receiving such information have been barred to disclose it further. Rule 7 lays down that the body corporate may transfer such information to any other body corporate or person in India or outside, that ensure the same level of data protection and such transfer will be allowed only if it is necessary for performance of lawful contract between the body corporate and provider of information or where the provider has consented for data transfer. Rule 8 of the said rules further provide reasonable security practises and procedures and lays down that international standard IS/ISO/IEC 27001 on “Information Technology- Security Techniques- Information Security Management System- requirements “ would be one such standard.The Ministry of Communication and Information Technology further issued a press note dated 24th August 2011 and clarified that the said rules are applicable to the body corporate or any person located within India. The press note further provides that any body corporate providing services relating to collection or handling of sensitive personal data or information under contractual obligation with any other legal entity located within India or outside is not subject to requirements of Rules 5 &6 as mentioned hereinabove. A body corporate providing services to the provider of information under a contractual obligation directly with them however has to comply with Rules 5 &6. The said press note also clarifies that privacy policy mentioned in Rule 4 relates to the body corporate and is not with respect to any particular obligation under the contract. The press note at the end provides that the consent mentioned in Rule 5 includes consent given by any mode of electronic communication.Data Protection relates to issues relating to the collection, storage, accuracy and use of data provided by net users in the use of the World Wide Web. Visitors to any website want their privacy rights to be respected when they engage in e-Commerce. It is part of the confidence-creating role that successful e-Commerce businesses have to convey to the consumer. If industry doesn't make sure it's guarding the privacy of the data it collects, it will be the responsibility of the government and it's their obligation to enact legislation.Any transaction between two or more parties involves an exchange of essential information between the parties. Technological developments have enabled transactions by electronic means. Any such information/data collected by the parties should be used only for the specific purposes for which they were collected. The need arose, to create rights for those who have their data stored and create responsibilities for those who collect, store and process such data. The law relating to the creation of such rights and responsibilities may be referred to as ‘data protection’ law.The world’s first computer specific statute was enacted in the form of a Data Protection Act, in the German state of Hesse, in 1970.The misuse of records under the Nazi regime had raised concerns among the public about the use of computers to store and process large amounts of personal data.The Data Protection Act sought to heal such memories of misuse of information. A different rationale for the introduction of data protection legislation can be seen in the case of Sweden which introduced the first national statute in 1973.Here, data protection was seen as fitting naturally into a two hundred year old system of freedom of information with the concept of subject access (such a right allows an individual to find out what information is held about him) being identified as one of the most important aspects of the legislation.In 1995, the European Union adopted its Directive (95/46/EC) of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data (hereinafter, the Directive), establishing a detailed privacy regulatory structure. The Directive is specific on the requirements for the transfer of data. It sets down the principles regarding the transfer of data to third countries and states that personal data of EU nationals cannot be sent to countries that do not meet the EU “adequacy” standards with respect to privacy.In order to meet the EU “adequacy” standards, US developed a ‘Safe Harbour’ framework, according to which the US Department of Commerce would maintain a list of US companies that have self-certified to the safe harbor framework. An EU organization can ensure that it is sending information to a U.S. organization participating in the safe harbor by viewing the public list of safe harbor organizations posted on the official website.Data protection has emerged as an important reaction to the development of information technology. In India data protection is covered under the Information Technology Act, 2000 (hereinafter, the Act). The Act defines ‘data’ as, “‘data’ means a representation of information, knowledge, facts, concepts or instructions which are being prepared or have been prepared in a formalized manner, and is intended to be processed, is being processed or has been processed in a computer system or computer network, and may be in any form (including computer printouts magnetic or optical storage media, punched cards, punched tapes) or stored internally in the memory of the computer”. Protection of such data and privacy are covered under specific provisions in the Act. In the recent past, the need for data protection laws has been felt to cater to various needs. The following analyses the position of data protection law with respect to some of the needs.Data Protection Law In Respect of Information Technology Enabled Services (ITES)India started liberalizing its economy in the 1990’s and since then a huge upsurge in the IT business process outsourcing may be witnessed. Financial, educational, legal, marketing, healthcare, telecommunication, banking etc are only some of the services being outsourced into India. This upsurge of outsourcing of ITES into India in the recent past may be attributed to the large English-speaking unemployed populace, cheap labour, enterprising and hardworking nature of the people etc. Statistics have shown that the outsourcing industry is one of the biggest sources of employment. In a span of four years, the number of people working in call centers in the country supporting international industries has risen from 42,000 to 3,50,000. Exports were worth $5.2 billion in 2004-2005 and are expected to grow over 40% this fiscal year. US is currently the biggest investor in Indian ITES, taking advantage of cheap labour costs. Statistics indicate that software engineers with two-years experience in India are being paid about 1/5th of an equivalent US employee.Concerns about adequacy of lawBPO FraudsWith globalization and increasing BPO industry in India, protection of data warrants legislation. There are reasons for this. Every individual consumer of the BPO Industry would expect different levels of privacy from the employees who handle personal data. But there have been situations in the recent past where employees or systems have given away the personal information of customers to third parties without prior consent. So other countries providing BPO business to India expect the Indian government and BPO organizations to take measures for data protection. Countries with data protection law have guidelines that call for data protection law in the country with whom they are transacting.For instance, in, the European Union countries according to the latest guidelines, they will cease to part with data, which are considered the subject matter of protection to any third country unless such other country has a similar law on data protection. One of the essential features of any data protection law would be to prevent the flow of data to non-complying countries and such a provision when implemented may result in a loss of "Data Processing" business to some of the Indian companies.In the recent past, concerns have been raised both within the country as well as by customers abroad regarding the adequacy of data protection and privacy laws in the country. A few incidents have questioned the Indian data protection and privacy standards and have left the outsourcing industry embarrassed. In June 2005, ‘The Sun’ newspaper claimed that one of its journalists bought personal details including passwords, addresses and passport data from a Delhi IT worker for £4.25 each. Earlier BPO frauds in India include New York-based Citibank accounts being looted from a BPO in Pune and a call-center employee in Bangalore peddling credit card information to fraudsters who stole US$398,000 from British bank accounts.UK's Channel 4 TV station ran broadcast footage of a sting operation exposing middlemen hawking the financial data of 200,000 UK citizens. The documentary has prompted Britain's Information Commissioner's Office to examine the security of personal financial data at Indian call centers.In the absence of data protection laws, the kind of work that would be outsourced to India in the future would be limited. The effect of this can be very well seen in the health-care BPO business, which is estimated to be worth close to $45 billion. Lack of data protection laws have left Indian BPO outfits still stagnating in the lower end of the value chain, doing work like billing, insurance claims processing and of course transcription. Besides healthcare, players in the retail financial sector are also affected. Financial offshoring from banks is limited because of statutory compliance requirements and data privacy laws protecting sensitive financial information in accounts. In the Human Resource (HR) domain, there are many restrictions on sharing of personal information. In the medical domain, patient history needs to be protected. In credit card transactions, identity theft could be an issue and needs to be protected. Companies in the banking, financial services and insurance (BFSI) sector and healthcare have excluded applications/processes which use sensitive information from their portfolio for offshoring till they are comfortable about the data protection laws prevalent in the supplier country.Since there is lack of data protection laws in India, Indian BPO outfits are trying to deal with the issue by attempting to adhere to major US and European regulations. MNCs have to comply with foreign Regulations so that they don’t lose on their international partners. There are problems involved in this. Efforts by individual companies may not count for much if companies rule out India as a BPO destination in the first place in the absence of data protection law.Today, the largest portion of BPO work coming to India is low-end call centre and data processing work. If India has to exploit the full potential of the outsourcing opportunity, then we have to move up the value chain. Outsourced work in Intellectual Property Rights (IPR)-intensive areas such as clinical research, engineering design and legal research is the way ahead for Indian BPO companies. The move up the value chain cannot happen without stringent laws. Further, weak laws would act as deterrents for FDI, global business and the establishment of research and development parks in the pharmaceutical industry.Looking to the above scenario, we can say that for India to achieve heights in BPO industry stringent laws for data protection and intellectual property rights have to be made. . Thus, a law on data protection on India must address the following Constitutional issues on a "priority basis" before any statutory enactment procedure is set into motion:(1) Privacy rights of interested persons in real space and cyber space.(2) Mandates of freedom of information U/A 19 (1) (a).(3) Mandates of right to know of people at large U/A 21.Once the data protection rules are enforced in India, companies outsourcing to India are unlikely to dismantle the systems they have in place straightaway, and move data more freely to India. Hence ,the need for data protection laws would win over the confidence of international business partners; protect abuse of information; protection of privacy and personal rights of individuals would be ensured; there would be more FDI inflows, global business and the establishment of research and development parks in the pharmaceutical industry & impetus to the sector of e-Commerce at national and international levels would be provided.Data protection law in India (Present status):-Data Protection law in India is included in the Act under specific provisions. Both civil and criminal liabilities are imposed for violation of data protection.(1) Section 43 deals with penalties for damage to computer, computer system etc.(2) Section 65 deals with tampering with computer source documents.(3) Section 66 deals with hacking with computer system.(4) Section 72 deals with penalty for bsignNow of confidentiality and privacy. Call centers can be included in the definition of ‘intermediary’and a ‘network service provider’ and can be penalized under this section.These developments have put the Indian government under pressure to enact more stringent data protection laws in the country in order to protect the lucrative Indian outsourcing industry. In order to use IT as a tool for socio-economic development, employment generation and to consolidate India’s position as a major player in the IT sector,amendments to the IT Act, 2000 have been approved by the cabinet and are due to be tabled in the winter session of the Parliament.Proposed amendments:-The amendments relate to the following[22]:(i) Proposal at Sec. 43 (2) related to handling of sensitive personal data or information with reasonable security practices and procedures.(ii) Gradation of severity of computer related offences under Section 66, committed dishonestly or fraudulently and punishment thereof.(iii) Proposed additional Section 72 (2) for bsignNow of confidentiality with intent to cause injury to a subscriber.It is hoped that these amendments will strengthen the law to suffice the need.Data Protection Laws In Order To Invite ‘Data Controllers’.There has been a strong opinion that if India strengthens its data protection law, it can attract multi-national corporations to India. India can be home to such corporations than a mere supplier of services.In fact, there is an argument that the EU’s data protection law is sufficient to protect the privacy of its people and thus lack of strong protection under Indian law is not a hindrance to the outsourcing industry. To enumerate, consider a company established in EU (called the ‘data controller’) and the supplier of call center services (‘data processor’) in India. If the data processor makes any mistake in the processing of personal data or there are instances of data theft, then the data controller in the EU can be made liable for the consequences. The Indian data processor is not in control of personal data and can only process data under the instructions of the data controller. Thus if a person in EU wants to exercise rights of access and retrieve personal data, the data controller has to retrieve it from the data processor, irrespective of where the data processor is located. Thus a strong data protection law is needed not only to reinforce the image of the Indian outsourcing industry but also to invite multi-national corporations to establish their corporate offices here.Data Protection And TelemarketingIndia is faced with a new phenomenon-telemarketing. This is facilitated, to a large extent, by the widespread use of mobile telephones. Telemarketing executives, now said to be available for as low as US $70 per month, process information about individuals for direct marketing. This interrupts the peace of an individual and conduct of work. There is a violation of privacy caused by such calls who, on behalf of banks, mobile phone companies, financial institutions etc. offer various schemes. The right to privacy has been read into Article 21, Constitution of India, but this has not afforded enough protection. A PIL against several banks and mobile phone service providers is pending before the Supreme Court alleging inter alia that the right to privacy has been infringed.The EC Directive confers certain rights on the people and this includes the right to prevent processing for direct marketing. Thus, a data controller is required not to process information about individuals for direct marketing if an individual asks them not to. So individuals have the right to stop unwanted marketing offers. It would be highly beneficial that data protection law in India also includes such a right to prevent unsolicited marketing offers and protect the privacy of the people.Data Protection With Regard To Governance And PeopleThe Preamble to the Act specifies that, the IT Act 2000, inter alia, will facilitate electronic filing of documents with the Government agencies. It seeks to promote efficient delivery of Government services by means of reliable electronic records. Stringent data protection laws will thus help the Government to protect the interests of its people.Data protection law is necessary to provide protection to the privacy rights of people and to hold cyber criminals responsible for their wrongful acts. Data protection law is not about keeping personal information secret. It is about creating a trusted framework for collection, exchange and use of personal data in commercial and governmental contexts. It is to permit and facilitate the commercial and governmental use of personal data.The Data Security Council of India (DSCI) and Department of Information Technology(DIT) must also rejuvenate its efforts in this regard on the similar lines. However, the best solution can come from good legislative provisions along with suitable public and employee awareness. It is high time that we must pay attention to Data Security in India. Cyber Security in India is missing and the same requires rejuvenation. When even PMO's cyber security is compromised for many months we must at least now wake up. Data bsignNowes and cyber crimes in India cannot be reduced until we make strong cyber laws. We cannot do so by mere declaring a cat as a tiger. Cyber law of India must also be supported by sound cyber security and effective cyber forensics.Indian companies in the IT and BPO sectors handle and have access to all kinds of sensitive and personal data of individuals across the world, including their credit card details, financial information and even their medical history. These Companies store confidential data and information in electronic form and this could be vulnerable in the hands of their employees. It is often misused by unsurplous elements among them. There have been instances of security bsignNowes and data leakages in high profile Indian companies. The recent incidents of data thefts in the BPO industry have raised concerns about data privacy.There is no express legislation in India dealing with data protection. Although the Personal Data Protection Bill was introduced in Parliament in 2006, it is yet to see the light of day. The bill seems to proceed on the general framework of the European Union Data Privacy Directive, 1996. It follows a comprehensive model with the bill aiming to govern the collection, processing and distribution of personal data. It is important to note that the applicability of the bill is limited to ‘personal data’ as defined in Clause 2 of the bill.The bill applies both to government as well as private enterprises engaged in data functions. There is a provision for the appointment of, “Data Controllers”, who have general superintendence and adjudicatory jurisdiction over subjects covered by the bill. It also provides that penal sanctions may be imposed on offenders in addition to compensation for damages to victims.The stringency of data protection law, whether the prevailing law will suffice such needs, whether the proposed amendments are a welcome measure, whether India needs a separate legislation for data protection etc are questions which require an in-depth analysis of the prevailing circumstances and a comparative study with laws of other countries. There is no consensus among the experts regarding these issues. These issues are not in the purview of this write-up. But there can be no doubt about the importance of data protection law in the contemporary IT scenario and are not disputable.
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Who are the most notable figures persecuted for queer acts or otherwise outed and attacked under charges of homosexuality?
Alan Turing: widely considered to be the father of Computer Science and Artificial Intelligence. During World War II, Turing worked for the code-breakers at Bletchley Park, Britain's codebreaking center. He devised - almost single-handedly - an electromechanical version of the bombe, a machine invented by Polish code-breaker Marian Rejewski, that was used to break the German Enigma machine cipher. This single development is widely considered to have enabled the Allied navies to win the Battle of the Atlantic by reading the German High Command's orders to its U-boats. At the time, Turing's sexual orientation was well known to government officials, but his value to the war effort protected him from persecution.After the war, Turing's homosexuality resulted in a criminal prosecution in 1952, as homosexual acts were still illegal in the The United Kingdom. He accepted treatment with female hormones (chemical castration) as an alternative to prison. He died in 1954, several weeks before his 42nd birthday, from cyanide poisoning. An inquest determined it was suicide. On 10 September 2009, following an Internet campaign, British Prime Minister Gordon Brown (former British Prime Minister) made an official public apology on behalf of the British government for the way in which Turing was treated after the war.
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What is the exact procedure of admission into IIIT Bhubaneswar?
The admission process is simple.You register online from the official website .Then you will have to mail the college your application form ,the payment slip of the payment you had done after registering along with two passport size photograph and finally you need main admit and rank card.After that you will be called for document verification on one day based on you application ID where you will have submit all the essential documents mentioned in information brochure.The dates for verification will be given on the official website.After this you are good to go.Just wait for a seat in the counselling rounds following it,provided if your eligible.If you get a seat then after that you will have to pay you semester fee to start.I hope my answer was helpful.It will not be available for preference in JOSAA website.I am sorry I missed out a point , a friend of mine just discovered that the document verification is for the state candidate s.
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What is GamerGate (2014)? How did it blow up into such a giant conspiracy?
Long story, short: when proof of lacking ethics in major gaming publications was uncovered, a wall of false SJW victimhood was quickly constructed in order to hide behind and deflect any questions focusing on their corruption.Games were never cheap but their prices have gone up substantially recently. A complete game, which used to cost $40 in 2004 (or $53.50, if inflation corrected for 2018), today, by the time all the DLCs’ and Season Passes’ dust settles, will have set you back at least $150-$180. If the game is good, it could still offer you from 40 to over 100 hours of fun. If it is not good, however, this creates a real problem because returning a game is close to impossible. That is why accurate and honest game reviews are so important. And we always knew that something was not right with professional game reviews.It is not by mistake that so many big publisher games receive a far greater Metacritic score from professional reviewers than from actual gamers (while indie games receive the opposite treatment). In 2014 there was finally a smoking gun: professional gaming journalists and reviewers were caught in bed with game developers and their PR people. Both figuratively and literally. So, in order to cover up the stink, the spin-masters of the multi-Billion dollars industry quickly tried to masquerade this into a sexist harassment issue as a way to keep people from paying attention to the facts and, instead, focus on the staged “outrage”.PULLING ON A SMALL THREAD ENDS UP RIPPING THE CURTAIN:It all started with a female game developer having a string of affairs with some game journalists and publishers, which, of course would be no one’s business but their own. Oldest story in the world, anyone not directly involved would pay exactly zero attention. Only her (now former) boyfriend called them out very loudly and very publicly, by posting proof online. This made some people to take notice and realize that this was not just another case of serial infidelity but, in fact, it looked very much like the exchange of sexual favors in order to (allegedly) secure journalistic exposure and favorable reviews.The fuse was lit and the flame was starting eating its path towards the bomb. The Pied Pipers of the gaming Industry quickly realized that the mice were about to wake up on them. And they collectively tried to change their tune.THE PANIC DANCE AROUND THE LOOT PILE:The professional gaming press has cornered a very profitable niche market. And, besides direct advertising, it depends largely on early access and swag: all-paid trips to gaming conventions and press events with overly generous per diem; exclusive developing studio tours; special and collector’s editions of gaming paraphernalia as gifts that can be sold later at great profit; and, of course pre-release access to new games, because the early review gets the worm. If my competitors have access to the latest over-hyped games and I don’t, my readers will switch over in order to read their reviews on the latest triple-A title. And they will stay there. And if these incentives are not enough, good ol’ bribes rarely fail to deliver the desired reviews.Game publishers and developers have been known to secure favorable reviews for their products by reducing or closing the flow of the above. And they sure get their way: ten years ago, the Evil incArnate of the gaming industry (also known as EA) even had at least one gaming journalist fired for giving one of its games less than an enthusiastic review.So the lack of ethics was painfully real, the profits from such practices were very substantial and so any threat to them was decided to be met with an asymmetric response. As a first salvo, the most entrenched gaming press unleashed a coordinated name-calling attack against anyone who would dare question their “integrity”. It is never a good idea to indiscriminately insult your own audience but they did not stop there. Because next they called in a Rodeo Clown.It has been estimated that the money pile Jocker had amassed from Gotham City’s organized crime syndicates comprised of 6.3 Billion dollars. Well, the Gaming Industry brings in twenty times that amount every year, a growing market second only to China in size.FOLLOW THE CLOWN. FORGET THE MAN BEHIND THE CURTAIN:Anita Sarkeesian is a professional feminist who, since 2007, kept raising thousands of dollars in order to produce SJW videos on YouTube, videos whose production value could be easily matched by 15 year olds on an allowance budget. She psignNowes her controversial politics to a very small, fringe minority and that is why most of her videos have both the comments and voting options disabled. Which is her prerogative, of course. In order to keep the funding coming, however, she kept inviting, instigating and fanning controversy as a way to receive free publicity which, then, tries to turn into more funding - and, when no such reaction could be elicited, she has even been accused of creating it herself. So, even though completely irrelevant to the GamerGate scandal, she was connivingly inserted into the mix.Admittedly she was never good at anything she tried her hand at except stirring up anger in anyone unlucky enough to be exposed to her intentionally inflammatory drivel. Yet that “talent” and her gender was exactly what the gaming press spin-doctors needed in order to change the narrative. By first cultivating and harvesting the angry backlash and then focusing solely on the unethical game developer’s and Sarkeesian’s gender, they tried to turn a story about a severe lack of journalistic ethics into a story of “two poor women under attack by the bad male gamers”. It was a ridiculous smoke screen. But they were not going to be alone in blowing it.THE LIBERAL ARTS MAJORS ARE UP TO BAT:It is no secret that the mainstream media suffer a severe pro-SJW bias. Even on issues they do understand, they tend to focus on the leftist regressive aspects of them - let alone on issues, such as gaming journalism, they care and know very little about. So, even if it was besides the point and it ignored 99% of the GamerGate story, from all of Kotaku’s sister sites (Gizmondo, LifeHacker, i09, Jalopnik, Gawker, Jezebel) to Network news and the Colbert Report (not to mention the Grade-A certified SoyBoy Canadian PM), the purple-haired crowd was triggered to come out en mass to reproduce a false narrative, and, in the process, managed to obfuscate the real issue threatening to be exposed: that gaming journalism is as corrupt as the political one.Now, the people generating the fake outrage may have never been gamers but a lot of women actually are. And they strongly objected to their gender been used so shamelessly to hide dishonest business practices behind - and that is how the secondary #NotYourShield movement got started.Ever since 2014 I have deleted my bookmarks of Polygon, Gamasutra, EuroGamer and, of course, Kotaku (and all its GAWKER tentacles) and never gave them a second thought. Not only are they totally unreliable sources of gaming (or any) information, but their problematic ethics will stop at nothing in order for them to keep getting away with it.
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What are Bitcoins? What are their working process? What are the impacts of Lakshmi Bitcoins in the Indian economy?
Introduction to Bitcoin:When I read about Bitcoin, I was amazed at knowing that there existed an electronic currency and that there are millions of users worldwide who are using a medium of this electronic currency called bitcoin. I was shocked to know that in the beginning or the early years of bitcoin, 10000 bitcoins were used to simply order a Papa Jones pizza. I bet the one who ate that pizza must be really disappointed at the price he paid for a pizza which would have been amounted to $39289900 ($39 Million) today. Can you imagine a pizza worth 39 million, he could have bought the entire Papa Jones Pizza chain if he wouldn’t have had that pizza and would have kept his bitcoins intact.Now, getting a little serious, let’s talk about what I know to be bitcoins (These are my understanding, they may be wrong or inaccurate). Bitcoins is an electronic currency. Now what is an electronic currency? Ok, many of us would be having bank accounts right, now, many of us would be using the net banking facility wherein we make payments online from our bank account to a vendors bank account against receipt of goods or services, in this transaction, we don’t actually exchange cash issued by the central bank, but instead what happens is, the said amount reduces from payer’s bank account and that same amount is increased in the bank account of the recipient, resultantly, the money in the economy remains the same. Do you think that our banks actually exchange cash with the vendors banks, no, this transaction is executed by merely updating the electronic ledgers (Ledger is a record book that records information of transaction between parties, parties in our case are the banks) of the said banks wherein the payers bank reduces the said amount while the recipient bank increases the said amount and in addition, the said entry is also updated in a ledger maintained by the Central Bank. Hence, no real exchange of cash occurs between the two banks, simply their records are updated on a daily basis. Thus, the actual currency that is circulated physically (i.e. in the form of cash) in a country is way less than the currency being circulated in total in a country, usually this physical cash is 10% of the total currency in a country like India. Now, we can say that the currency in non-cash form is a form of electronic cash or electronic currency. Thus, we are already using our own currency in an electronic form if we are using facilities like net banking, debit cards, e-payment wallets etc. Now what is bitcoin, bitcoin is the same form of electronic currency, but the only difference is that it is not available in any form of cash, but is only available in electronic form, which means, we cannot get a paper which indicates that a central bank promises to pay the bearer a sum of 1 bitcoin. Bitcoin is 100% electronic and its existence is purely based on the ledgers or the records that are updated every second like the records that are updated by our banks and the central bank. Because, our banks update their ledgers and the Central bank updates its ledgers, we can fairly and squarely say that, our Central bank regulates our currency by ensuring in its master ledger that no false transactions are recorded in any of the bank’s ledger. Now how does a Central Bank regulate a currency, regulation of a currency is done by passing laws, putting restriction, giving loans, issuing cash, giving credit etc.So if Bitcoin is an electronic currency just like our money in our bank accounts, then what is the difference between Bitcoin and our currency also known as a fiat currency? What is the difference when both are in an electronic form? The difference is in the following ways:1. Transaction Intermediaries: In our currency, when we transact by sending money from our bank account to someone else’s bank account, what happens is that two intermediaries participate in this transaction. These two intermediaries are the payer’s bank and the receiver’s bank. In our transaction, we order our bank to make payment of our desired sum from our bank account to the recipient’s bank account and the recipient bank receives the said electronic payment on behalf of the recipient. Thus, when two people transact, there are actually 4 parties that come into picture namely, the main parties i.e. payer and receiver and the intermediaries the payer’s bank and the receiver’s bank. In the case of Bitcoin currency, what happens is the elimination of the intermediaries i.e. the payer’s bank and the receiver’s bank does not play any role in the transaction. The currency is directly transferred from the payer to the receiver. This is possible because of the blockchain technology (I will come back on this later). There is an advantage of Bitcoin users in this scenario, if a value is transferred from one person to another, no third party, no intermediary, no government, no FBI, no Interpol, no regulatory authority would be flagged in any manner or would come to know about this transfer of value as no third party is involved in this transaction. This makes Bitcoin a heaven for those who wish to evade taxes, who wish to launder money, who wish to store value without hiring a locker or keeping bodyguards around to protect wealth, who wish to sell contraband items like drugs and arms. These people would prefer selling their stuff for bitcoin, as they know that their proceeds are safe with them and that they would not be caught because no authority except the two parties involved knows about their transaction. Let’s say that Mr. A bought a house for Rs. 100000 in 2001 and Mr. A sells that house to Mr. B for Rs. 400000 in 2017. Mr. A receives the consideration in 2 forms, Bitcoins worth Rs. 300000 and a bankers cheque of Rs. 100000. Mr. A will report in his tax papers that he has sold his house in a no profit no loss price of his cost or less than his cost (considering indexation benefits), this will help Mr. A from paying capital gains taxes on the gain of Rs. 300000 received through Bitcoins. Mr. A being conservative would go to a commodities trader and ask him for physical gold against bicoin and will buy gold worth Rs. 300000 against his bitcoins. Thus Mr. A will buy unaccounted gold worth Rs. 300000 and also save capital gains taxes from his sales transaction. The income tax department will not be able to prove that Mr. A has received any other consideration over and above Rs. 100000 in cheque (unless ofcourse they search his home and find unaccounted gold worth Rs. 300000, which Mr. A would say that is of his ancestors and that he would be happy to pay inheritance tax if any).2. Ledger Maintenance: We read above that when we transact in our local country currency, we are compelled to involve the intermediaries i.e. our banks. We understood that our banks are needed, because, these intermediaries are the institutions who keep our money in the electronic form by regularly updating their ledgers. Now how do they update their ledgers? Do they do it after every transaction? No, let’s understand this with an example, say that we have total 2 banks in our country namely A and B, and both banks have 1000 customers each who transact with the customers of other banks. What happens is that at the end of the day, both banks sit together with their ledgers and calculate the amount payable by bank A to B and the amount receivable by bank A from B based on the transactions made by the customers of these banks. If the amount receivable by A from B is more than that of the amount payable by A to B, then the net difference between amount receivable by A from B and the amount payable by A to B is the net amount of increase in the books of A while the same is reduced in the books of B and vice versa. This ultimate net transaction is recorded in the books of the Central Bank which keeps the records of the banks in a country. In the bitcoin transaction, the reason we don’t need banks as intermediaries is because, the ledgers are updated by the nodes or miners who verify and authorize a transaction. The updated ledger of bitcoin users is declared and the updated ledger of all bitcoin users is informed to every bitcoin user after every transaction. This means that no bulk or net settlement is required in the bitcoin universe, why is it not required is because every bitcoin wallet holder is like a bank of our system and every transaction between users is like a transaction between two banks. After every transaction, the records are added in the public ledger which is in the public domain. Every transaction is systematically updated in such a manner that no duplication or double use of balance happens by any user. E.g. A has 10 bitcoins and A transfers 5 bitcoins to B and 10 bitcoins to C. Now the technology is so designed that after the first transaction from A to B, the ledger of A is updated to 5 bitcoins by reduction of 5 bitcoins in his balance and the ledger of B is updated to 5 bitcoins by increase of 5 bitcoins in his balance. After this first transaction by A to B, the updated balance is verified and is declared as an update to the public ledger that is being maintained in the hands of every bitcoin user. After this update, the second transaction of A to C of transfer of 10 bitcoins will be rejected as every public ledger will declare that as per their updated records, A does not have sufficient balance to transfer 10 bitcoins to C, as the updated ledger clearly indicates that the balance of A is merely 5 bitcoins after the first transaction from A to B. This settlement system is extremely precise and is so accurate that A won’t be able to do any kind of fraudulent transaction over and above its balance. This idea and execution of accurate public ledger maintenance is the blockchain technology.3. Privacy: In our currency, the electronic form cannot be privatized from the eyes of banks, regulators and the government. If we have a bank account, our bank knows how much money we have in our account and what transactions we do using those money, our government knows it, our government is informed by the banks for every transaction that surpass a certain amount as the banks are legally bound to report so. A person holding more than a specific number of bank accounts is also flagged and the government is informed about the same. Bitcoin is way more private for its users. Every bitcoin user is provided with a public key and a private key to their bitcoin wallets. These keys are alphanumeric codes that are unique for every wallet. A user may have as many bicoin wallets as they want, hence there is no restriction in the number of accounts that a user wishes to maintain. And no one can know from the public key about the owner of the bitcoin wallet. The privacy of bitcoin is one of the many reasons why people doing illegal business prefer it to be a utensil of value, they very well know that the first rule of doing an illegal business is to not get caught, and they try all the measures to secure their privacy, one such preferred measure is to accept bitcoins as a medium of cash because of its privacy feature.We read about the introduction of Bitcoins and the basic understanding about bitcoins that I have. We also came to know about the advantages of bitcoins when we tried to find the difference between bitcoin as an electronic currency and our fiat currency as an electronic currency. Let us move on to why I feel that BITCOIN is BOUND TO FAIL and why I feel that such failure will be another lesson for the world to know how gullible the people are.1. Advantages of Bitcoin: As I described before the advantages of Bitcoin makes it a utensil of value for people who wish to pursue illegal businesses. This will in long run invite government intervention and regulations to keep a check on circulation of these utensils. Bitcoin is too private to be owned and hidden from a government that has an army and a defense budget going into billions of dollars every year. If bitcoin will come in the way of government’s motives to curb crime, it will not take more than a signature of the president or the prime minister to pass a regulation to ban this crypto currency, resulting into the downfall in its price. Because of its grave advantages, a government might presume that whosoever holds bitcoins or deals in bitcoins is involved in any kind of illegal operation and may try to point all the holders or traders of bitcoins to instead prove their innocence.2. National Currency Vs. Global Currency: When a country issues currency, the said currency is owned and regulated by a powerful institution known as the government. Apart from regulating its currency, government has power to impose taxes on people. This power of imposing taxes is the power that can nationalize the efforts of the people of the country. Governments take several measures to ensure that the currency of their country is valued according to the needs of the country. They control the interest rates to ensure required liquidity so as to keep the economy stable and growth oriented. Bitcoin is not regulated by any central government but by a software that mathematically controls its supply. The supply is predetermined and the time is also predetermined. A fiat currency has the backing of a powerful government behind it, the people who are in power in the government have their interest in the economy being stable, this self interest will ensure that the government takes necessary steps to keep their currency stable in value. If the economy plunges, it becomes hard for the people in power to get re-elected. Thus the entire system of fiat currency is designed in the manner that its volatility can be controlled to a certain extent. Bitcoin on the other hand has no governing body. Its value is purely based on the number of users using it and the pre-determined supply. Imagine if all the Bitcoins ever mined are bought by 1 person, will it hold its value? No. That 1 person will be the most unluckiest person for he would have spent a fortune in accumulating something that is not backed by any powerful agency and it has no secondary market. To be frank, Bitcoin is an illusion of value, it’s just a number in an application and this number derives its value because many people think that it’s valuable. It’s not gold, silver or diamond which will find its value in the secondary market, if not in the primary market. It’s not a legitimate currency issued by a powerful country and backed by the same. It’s simply valuable because so many people have made a huge investment to become miners and these people feel that they are doing a valuable job running their machines.3. Heaven to Money Launderers and Tax Evaders: As we read earlier, the advantages of bitcoins are majorly exploited by people who are involved in illegal operations of any kind or who wish to evade taxes from gains in transaction. Bitcoin is heaven for them. Taxes are the only sources of revenue for the mighty government. Taxes are the only source of income for government. When the Government will realize that a tool is being used that is causing their treasury to remain empty, it will start its witch hunting and this will be a deadly witch hunt. You may kill a few solders and you will be spared but you try to take away power from the powerful and you shall see the fury like no other. If I can evade 25% of capital gain on Rs. 300000, it amounts to Rs. 75000 and all I have to do is take my receipts in bitcoins and to avoid any speculative loss simply sell it against gold or any other financial instrument off-shore or I can help someone else evade his taxes by buying his property using my bitcoins. Now my profit of Rs. 300000 in a property in India is a meager token amount, the real gains goes into crores, imagine if the gain is no just 300000 but Rs. 30 million. Thus, this 25% of tax evasion is compounded with every transaction that involves bitcoin as a medium of exchange. Governments around the world would soon realize this and would in no case tolerate this. China has started realizing and so will other countries.4. Threat of new Crypto currency: Just as we learnt above, that the value of Bitcoin is derived because so many people agree to the value. As other software developers realize the potential, they may develop such other cryptocurrency based on the same blockchain technology. This will lead to introduction of so many different cryptocurrencies and people will keep on shifting to every new currency that has low value initially but will have the potential to become big just like bitcoin. This will lead to busting the bubble of bitcoin crashing its prices due to the shift. This crash will result in distrust of people on such cryptocurrencies and will eventually lead to the crash in every crypto currency. As I am writing this, I found that there are atleast 100 crypto currencies in the market in existence. Bitcoin, Ethereum, Ripply, Dash, Litecoin are few (https://coinmarketcap.com/). The bigger this list gets, the riskier, these kinds of instruments become. If a software developer can create a valuable commodity, just by writing a programme, then there are millions of coders and software developers who can make a million cryptocurrencies.5. Mining community: An important reason for bitcoin being so valuable is because of the mining community. Miners are the people who play the role of Nodes who verify and authorize transactions and thereby help sustain and update the public ledger. Miners are like the Central Bank for bitcoin users. Now for the purpose of authorizing and verifying a bitcoin transaction, these miners have to deploy huge computer processing power to solve difficult mathematical equations so as to approve a transaction. So as to deploy a processing power, these miners have to buy and invest in huge GPU (Graphics Processing Units or lets say, expensive processing units) and these GPU’s require a lot of electricity to function. All this adds to the cost of mining process. These miners bear these costs because, as a return against verifying the transaction, they get a fractional bitcoin as their processing fees. For miners to make profit, these fractional bitcoin should have a value more than that of the cost they bear. However, the supply of these fractions is limited in such a manner that only 12.5 bitcoins are issued every 10 minutes. If the number of miners increase, the fractions reduces as the supply is limited, and these fractions will further reduce because, every 4 years, this supply would be halved so as to create an artificial scarcity. The only reason why miners continue to mine bitcoins is because its value keeps on rising, making the fraction mined to be profitable. If the value of bitcoin plunges, this fraction earned will no longer remain profitable and the miners will be losing money for the cost they incur to mine a bitcoin. Personally, I feel that the GPU makers are playing a big fraud on the customers of their products. If mining would be extremely profitable, then the manufacturer would use the products to mine bitcoins himself rather than to sell the processors. It’s common sense that if a tool can make me earn a substantial sum, the tool maker would not sell the tool, but would use it, if I get the plates to print money, would I be fool enough to sell those plates?. Also, if a group of miners feel that the value of bitcoin is stagnant, they may shift to mining some other cryptocurrency which is new and still a bit cheap.6. No Fundamental Value: Bitcoins don’t have any fundamental value, not even an artistic value. A painting of a famous artist is valued because art curators value that art, the day majority of these art curators shift to some other art, the value of their curated value drops to a great extent. Still, a painting has a form, it can be seen, touched and felt. There exists no such base for bitcoins. It’s value will remain and grow until its users or believers remain in greed, ignorant, avoid rationality and remain stuck to delusion. The day majority of these users come to their senses and rationality and realize that what they are holding onto is merely a number in an application, they will start selling their bitcoins consequently crashing the currency. Only those who come to their senses early and will exit early may save their money. Once panic selling starts, the fall will be drastic and no government will be able to bail out anyone, they will simply laugh it off. It being a global currency will have the same impact in every country. If a person invests in gold and if the gold market in a particular country deteriorates, then the owner of such gold has the opportunity to get a good value of his gold in some other country, however, this will not be the case for bitcoins, once panic selling starts, every country will start dumping their balance and the one who will be stupid enough to buy then would be the biggest loser. Many of the believers of Bitcoin have not heeded to the lesson of 2007-08 housing crises. The CDO’s (Collateralized Debt Obligations) had a base of the inherent real estate that was mortgaged, this real estate was physical, tangible and though it was inflated in value, it still had an inherent value. There was one more instrument called Synthetic CDO’s which had its base in CDO’s, if the CDO’s failed, the Synthetic CDO’s would also collapse, now this base was less tangible, less physical, and had less inherent value. Bitcoins are even worse than the synthetic CDO’s because they don’t have any base at all. The survival of bitcoin can be purely because there is no clause of interest payment to the holder of the Bitcoin and hence there is no chance that Bitcoin would default. The only return that a Bitcoin as an asset can provide is the return of capital gain in its value and the return of taxes evaded using it (Which is substantial btw, though illegal). If I can evade 25% of capital gain on Rs. 300000, it amounts to Rs. 75000 and all I have to do is take my receipts in bitcoins and to avoid any speculative loss simply sell it against gold or any other financial instrument off-shore or I can help someone else evade his taxes by buying his property using my bitcoins. Thus, this 25% of tax evasion is compounded with every transaction that involves bitcoin as a medium of exchange. Governments around the world would soon realize this. Thus with bitcoin being a medium, an illegal tax evasion is the only return that a user can get apart from its appreciation in price. A country with higher income taxes and capital gain taxes will be the place where bicoins will be most preferred and valued and that country would lose a lot of income because of this currency. Though this tax return is high, it is basically, tax evasion and though it sounds like a smart thing to do, it’s more like stealing from the government.7. No Security: Government security is not available to protect gullible investors of bitcoin. There is no gold deposit reserves, there are no diamonds, there is no receivables of debt based on which this currency is issued, the only security is mutual trust of users and this kind of security is an extremely weak kind of security.8. Competition to powerful nations: Every country and the managers of country wish to be in power in all forms including the economic form. If a government of the country is robbed of its power to control the economy of the country, it would not let it happen, it would fight it till it defeats its enemy. If one person holding power declares that a certain currency would have no value from the next day, that currency would not have any value from the next day, this is power demonstrated by the PM of India during Demonetization. If POITUS would declare the same about Bitcoins, they will face the same death.9. Imposition of regulations: So as to not let bitcoin become a safe heaven for money launderers and tax evaders and to prevent its treasury from being robbed, Government will either ban the cryptocurrency or will draft laws and regulations to regulate the same in the hands of its users. These regulations will destroy the advantages and the only reason why Bitcoins have its value i.e. of tax evasion and privacy that are currently inherent in Bitcoins. Once these advantages are destroyed, it will be hard to gain anything out of Bitcoins. People will shift to fiat currency which would atleast give interest and which would have an advantage of being backed by the government, resulting into the grave fall in demand of bitcoins. Resultantly, Bitcoins and all other cryptocurrency would crash. If a government regulates gold, then the holder has an option to sneak into some other nation and sell that gold, what option would a bitcoin holder have??10. Inheritance issues: What if a person dies with so many bitcoins in his account but in his will forgets to mention the private key to access the wallet by his heirs? Apparently there exists no way to verify that a wallet is of a person other than through his private key. If a person dies or loses his private key, that value conversion vanishes with the death of a person. For money in a bank account, an heir can claim funds and if proved to be an actual heir, a bank is obliged to give the money to such heir. No such process is apparently available for bitcoins. Also, a private key is a long alphanumeric password extremely hard to remember. The only option is to write down the private key in a piece of paper, laminate that paper and put it into a locker and keep the key with oneself till one dies and then in the will, give the location to that locker with the key.So when will the Bicoin crash?Bitcoin will crash when the governments of world will start realizing that their coffers are being depleted due to the use of a crypto-currency. OR Bitcoin will crash when the masses would realize that they are buying something that does not have any inherent value other than the value of stealing from one’s government through evasion of taxes. OR Bitcoin will crash when the miners will feel that the price of Bitcoin is saturated and will not go any further and that there is no point in investing in more powerful GPU’s, instead, it would be profitable to shift to a new crypto-currency which is in its infancy stage. OR Bitcoin will crash when the believers would think rationally again and would realize that the illegal benefits that they are reaping could cause them to face jail time. Sooner or later, Bitcoin will crash and it will crash along with other crypto-currencies crashing like hell.Can Bitcoin survive? What is the summary?Bitcoin may survive if there is an authority that would assign gold value to bitcoins in circulation. Bitcoin may survive if bitcoin founders clearly give a minimum value to it by creating a gold or silver reserve for bitcoins in circulation. Any crypto-currency with an inherent reserve of value will survive if that inherent reserve is traditionally accepted as a reserve of value like gold or silver or platinum etc. Such crypto-currency may have a value more than the inherent reserve because of the illegal returns (returns of tax evasion) attached, but, when the crash starts, the only crypto-currencies that would survive will be the ones having such fundamental base as being backed by a gold reserve or silver reserve, because such currencies are not backed by any nation or any government.The block-chain technology on the other hand will not just survive, it will flourish like anything. Governments will realize that they can have an alternative to banks transacting on people’s behalf and this may influence them to issue their own government backed crypto-currencies (obviously with the required conditions so as to not misuse them to evade taxes, eg. Only one account per person). This will be a big hit for the public as the public will not be in need to approach banks for digital transactions, it will save a lot of processing fees. This will be a big blow to the banking sector and for processing companies like visa, master-card, rupay etc., banks will lose current account holders, people will prefer transacting in crypto-currencies issued by the country. Then, the most powerful institution would again be the government. No bank would be able to influence such crypto-currency except the government.(The answer is long and is merely an opinion, I can be wrong.)
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