Crypto Coins Backed by Gold

Coins backed by gold are a new variety of stablecoins. Stablecoins, as we know, are pegged to dollar or to a real world commodity. This tames the volatility of cryptos. Stablecoins have been used to move the funds around as it is easier to swap these with traditional money.

PAXG or PaxGold and Tether Gold are gold-backed stablecoins. These have tracked the price of physical gold. They are literally just IOUs that incidentally use blockchain infrastructure. They are both synthetic gold exposure backed by gold holdings. They enable you to own gold without the need to store it in physical form, say a coin or bar.

PAXG requires a minimum investment of the equivalent of 0.01 ounce of gold. Its current value is roughly $20.

Gold-backed cryptos boost up the credibility of cryptos.

Indian Cartoon Characters

These days Indian cartoon characters are used to promote and endorse the brands. Chacha Chaudhary created by Diamond comics has been used for Namami Gange and Cred. Characters Motu Patlu from Diamond Comics and Cosmos Maya have been used for Colgate, First City etc. Supandi from Tinkle and ACK Media is used for Cred and Visa. Little Singham from Discovery Kids, Reliance Animation and Shetty Pictures has been used for Cadbury. Chhota Bheem from Green GoldAnimation has been used for endorsement by ICICI Bank, Asian Paints, Cadbury, Parle, Usha, HUL.

Domestic Patents

Patent filings have received a boost in India during the period of January-March, 2022. The total patents filed were 19,796, of which 10,706 were from Indian applicants and 9090 from non-Indian applicants. The patent examining time has reduced to 5-23 months from 72 months in December, 2016. The patent filing fee has been reduced by 80 per cent for eligible educational institutes, and there is 9-10 per cent rebate in fees for on line filing, as against physical filing of trade mark applications.

Bitcoin vs. Ether

Original crypto or the pioneering crypto is Bitcoin which was introduced in 2008 by its anonymous creators. Its underlying technology is Blockchain or distributed ledger. Till then Blockchain technology was restricted to financial transactions. Vitalik Buterin, a computer programmer as a teenager learnt about crypto in 2011 through his father. He realised the shortcoming of Bitcoin and visualised the Ethereum platform in 2014. Ethereum uses Blockchain for property transactions or royalty payments to artists.

As it is, both Bitcoin and Ethereum are decentralised — there is no central authority to control them. However, Ethereum takes crypto beyond currency. Ethereum code can enable you to pay crop insurance to a farmer, using drought data. Or royalties can be offered to artists whenever their work of art gets sold.

Ethereun platform has its own in-built currency called Ether. On Ethereum blockchain, a programme of commands can be executed. It is called a smart contract. It is a self-executing contract. Thus Ethereum expands the scope of blockchain technology. Its design enabled creation of NFTs and decentralised finance (DeFi). NFTs provide ownership title and DeFi refers to peer-to-peer financial services, as distinct from financial services accessed from banks or NBFCs.

Ethereum enabled trust-less blockchain transactions for fiat money. In a decentralised system, people have to trust the system, rather than the other person. Ethereum commoditises trust. It is a platform for zero-trust computing.

A blockchain system must satisfy the criteria of decentralisation, security and scalability. Though Ethereum is both decentralised and secure, it is not scalable. Buterin had realized this pitfall.

Each Ethereum transaction needs to be processed by every node in the network. It is an inefficient system. However, as the blockchain technology is still evolving, researchers are working on improving it.

Bitcoin and Ether have not been conceptualised as competitors. Ether, however, could supersede Bitcoin on the basis of its flexibility and versatility.

Human Genome

In order to know more about Homo sapiens, we have to understand the sequencing of human genome. A genome is the complete set of genetic instructions encoded in an organism. It is a combination of two words — gene and chromosome. The idea of DNA sequencing was first floated by Nobel laurate Italian-American virologist Renato way back in 1984. The sequencing was initiated in October, 1990. Sequencing simply means determining the order of the base pairs in a segment of DNA.

Molecular units of DNA and RNA are made up of ACGT nucleotides. These combine in various sequences to make the chromosome of any species. Chromosomes are long rod like DNA molecules. DNA, as we are aware, is packed in a double-helix structure consisting of two intertwining spirals. In the DNA ladder, each rung consists of two pairs of nuncleotides, and there are several billion of such pairs in the human genome.

The number of choromosomes differ in different species. Chromosomes form paired sets of 23 or 46 combined together in human beings. One of each pair is donated by one parent. A child thus inherits two copies of every gene. Our immediate predecessors such as apes, gorillas, chimpazees and orangutans have 24 pairs. However, we share 98 per cent of DNA with them.

We have observed already that human genome project (HPG) was initiated in 1990. Its aim is to decode the human genome. Human genome was studied for its order or sequence, gene placement in chromosomes and the linkage maps to track the inherited traits such as eyes, hair colour, disease proneness.

We got the draft genome by 2001. It completed the study of the sequence 90 percent of the total 3 billion base pairs. Still the sequences of 10 per cent of pairs, of say 300 million pairs, is not known. The major portion of this was called junk DNA. Thus we were almost there, but still we had to work to know what the remaining 10 per cent is.

It was in 2003 that a more complete genome was documented. The project which was initiated in 1990 to sequence the entire human genome was complete in 2003. However, it was prematurely announced, since it completed only 92 per cent of base pairs.

DNA gives coded instructions to create proteins which do various things. The DNA that does not give coded instructions is called junk DNA. Why such DNA is there? It too may be performing some functions. By 2022, we have completed 92 per cent of human genome project.

In April 2022, 38 years after the idea of sequencing was first floated, there are research papers that throw light on the last 8 per cent where sequencing was done through Telemere to Telemere (T2T) effort. The project is called T2T-CHM13. Thus it offers a benchmark to compare individuals or entire populations. The T2T determines the sequence, comprising more than 3 billion base pairs across 23 chromosomes. It is gapless.

The two new technologies which facilitated the sequencing emerged in the last decade — the PacBio HiFi DNA sequencing and the Oxford Nanpore DNA sequencing. Both these were used for T2T research.

The work is done but scientists still want decode full sets DNA from a large sample of individuals to factor in all the variations that exist in humans.

Genome research will facilitate in diagnosis and treatment of diseases. There could be preventive medication as we will be alerted about the future risks.

In the US, one research has already mapped genomic changes in 33 cancer types.

In threapeutics, we have already 250 US-FDA approved drugs labelled with pharmacogenomic information. These can be prescribed based on a patient’s genetic information.

In future, medical prescriptions can be based on our genes. There are two aims — to make prescriptions more effective and to reduce the side effects.

The cost of genome sequencing is coming down and is becoming affordable. In India, it costs Rs.10000 to Rs.20000 for genome sequencing.

The sequencing facilities genome editing. Here we can choose the specific embryos to avoid the health problems. It could lead to emergence of superhumans. It is a redline. Here ethics should be the guiding factor.

ASCI’s Guidelines on Cryptos

The Advertising Standards Council of India (ASCI) has introduced guidelines for advertising and marketing of cryptos. These include NFTs. The Government calls these virtual digital assets (VDAs).

The advertising of VDAs from April 1, 2022 must carry a disclaimer — crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.

In addition, advertisers cannot use words like currency, securities, custodian and depositories as these are associated by the consumers with regulated products.

Advertising cannot use a minor who deals with VDAs or talks about them.

Prominent personalities must conduct proper due diligence before making any claims in the ad.

Banks Increase Tech Spends

Indian corporates such as the Tatas, Reliance and Adani are entering super app space. A super app is an application that allows users to access a number of services under one platform. Some super apps in India are MAARS of ITC, Paytm, PhanePe and Tata Neu.

Indian banks too are making them ready to meet this challenge by increasing their spending on technology. Banks have to spend hugely on manpower costs and non-employee costs. In non-employee costs, major chunk is accounted for by technology-related expenses.

ICICI has witnessed an increase in its non-employee expenses. Axis Bank too saw a growth in non-staff expenses. The focus is on initiatives built on cloud, automation, adoption of new technology and resilience. There is a move to an all-cloud infrastucture, tie-ups with fintechs, streamlining of digital offerings and so on.

Crypto Winter

Cryptos are infamous on account of their volatility. Such warnings do not deter the diehard fans. In fact, they are temped to invest more in such assets. The period between 2018 and mid-2020 when cryptos took a price beating is called crypto winter.

How long will this winter last? It is so cold and harsh. Many coins have taken a beating of 90 per cent. Bitcoin has not fared as poorly as others did. Still it has lost more than 50 per cent of the value.

Most sensible people agree that the underlying blockchain technology has great potential. Many venture capitalists believe in it. There are investments in Web 3.0 and NFTs have enriched many . However, these assets have taken a beating in the last few months.

There was dot.com bubble that lasted between 2000 and 2002, and then burst. Many venture capitalists put in money in crypto in 2021. The returns are dismal. There are no cash flows and there are no earnings. Its valuation is based on underlying confidence. There are no fundamental underpinnings for crypto assets, and thus they take the hardest hit. Thus they are so risky.

In previous such beatings, people waited for the rebound. They do hope so for the blockchain technology in general. Despite the winter, cryptos may have another bullish market. This confidence wavers for a while, but then is regenerated. It could be that a new technology can be seen on the horizon, instead of Web 3.0 and NFTs. Even dot.com survivors later became spectacular winners such as Amazon, Facebook and Google. Capital market is a melting pot. It rewards good ideas, and punishes the bad ones.

GST on e-Gaming

The GST Council, the highest decision making body, tasked a Group of Ministers (GoM) to recommend the tax rate on online gaming, races and casinos. It is likely to suggest the highest rate, viz. 28 per cent GST on e-Gaming. It is yet to be seen whether it will be levied on gross gaming revenue or per transaction. At present, online games involving betting or gambling attract 28 per cent rate, whereas for other games, it is 18 per cent. In addition, on the commissions collected by online gaming platforms, 18 per cent tax is levied. The final call will be taken by the GST Council. The industry expects the tax on the gross revenue. It is very steep though, and could make the industry unviable. The 18 per cent rate on other games is okay. The sin rate of 28 per cent may prove detrimental to the gaming sector.

1900th Write-up in this Blog : Google Ad Customisation

Google earns its revenues mainly from advertising. Of late, it is making efforts to shift to subscription-driven model or pay model. It is very akin to its offerings like ad-free YouTube Premium and YouTube Music subscriptions. But it is doubtful whether this feature would work.

Google has also announced that users would be allowed to have more control over the content in advertisements. It is called ad customisation or ad personalisation. It helps consumers discover products they may not be aware of. But ad companies have become invasive while using consumers data to do this.

There is currently hybrid play of advertising, subscription and freemium models. The sweet spot between advertising and subscription will be discovered over a period of time.

In the meanwhile, Google Search, YouTube and Discover Feed will roll out a new tool. It will allow users to choose from a three-dot menu next to any ad, and select which brands or topics they get to see within ads.

Google is also phasing out third-party cookies by late 2023. It will replace this by new tracking technology.