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Wednesday, October 6, 2021

Atmosphere of Venus

Atmosphere of Venus
Venus
Cloud structure in Venus's atmosphere in 1979,
revealed by ultraviolet observations from Pioneer Venus Orbiter
General information
Height250 km (160 mi)
Average surface pressure93 bar (1,350 psi)
Mass4.8 × 1020 kg
Composition
Carbon dioxide96.5 %
Nitrogen3.5 %
Sulfur dioxide150 ppm
Argon70 ppm
Water vapor20 ppm
Carbon monoxide17 ppm
Helium12 ppm
Neon7 ppm
Hydrogen chloride0.1–0.6 ppm
Hydrogen fluoride0.001–0.005 ppm

The atmosphere of Venus is the layer of gases surrounding Venus. It is composed primarily of carbon dioxide and is much denser and hotter than that of Earth. The temperature at the surface is 740 K (467 °C, 872 °F), and the pressure is 93 bar (1,350 psi), roughly the pressure found 900 m (3,000 ft) underwater on Earth. The Venusian atmosphere supports opaque clouds of sulfuric acid, making optical Earth-based and orbital observation of the surface impossible. Information about the topography has been obtained exclusively by radar imaging. Aside from carbon dioxide, the other main component is nitrogen. Other chemical compounds are present only in trace amounts.

Aside from the very surface layers, the atmosphere is in a state of vigorous circulation. The upper layer of troposphere exhibits a phenomenon of super-rotation, in which the atmosphere circles the planet in just four Earth days, much faster than the planet's sidereal day of 243 days. The winds supporting super-rotation blow at a speed of 100 m/s (≈360 km/h or 220 mph) or more. Winds move at up to 60 times the speed of the planet's rotation, while Earth's fastest winds are only 10% to 20% rotation speed. On the other hand, the wind speed becomes increasingly slower as the elevation from the surface decreases, with the breeze barely reaching the speed of 10 km/h (2.8 m/s) on the surface. Near the poles are anticyclonic structures called polar vortices. Each vortex is double-eyed and shows a characteristic S-shaped pattern of clouds. Above there is an intermediate layer of mesosphere which separates the troposphere from the thermosphere. The thermosphere is also characterized by strong circulation, but very different in its nature—the gases heated and partially ionized by sunlight in the sunlit hemisphere migrate to the dark hemisphere where they recombine and downwell.

Unlike Earth, Venus lacks a magnetic field. Its ionosphere separates the atmosphere from outer space and the solar wind. This ionized layer excludes the solar magnetic field, giving Venus a distinct magnetic environment. This is considered Venus's induced magnetosphere. Lighter gases, including water vapour, are continuously blown away by the solar wind through the induced magnetotail. It is speculated that the atmosphere of Venus up to around 4 billion years ago was more like that of the Earth with liquid water on the surface. A runaway greenhouse effect may have been caused by the evaporation of the surface water and subsequent rise of the levels of other greenhouse gases.

Despite the harsh conditions on the surface, the atmospheric pressure and temperature at about 50 km to 65 km above the surface of the planet is nearly the same as that of the Earth, making its upper atmosphere the most Earth-like area in the Solar System, even more so than the surface of Mars. Due to the similarity in pressure and temperature and the fact that breathable air (21% oxygen, 78% nitrogen) is a lifting gas on Venus in the same way that helium is a lifting gas on Earth, the upper atmosphere has been proposed as a location for both exploration and colonization.

History

Mikhail Lomonosov was the first person to hypothesize the existence of an atmosphere on Venus, based on his observation of the transit of Venus of 1761 in a small observatory near his house in Saint Petersburg, Russia.

Structure and composition

Composition

Composition of the atmosphere of Venus. The chart on the right is an expanded view of the trace elements that all together do not even make up a tenth of a percent.

The atmosphere of Venus is composed of 96.5% carbon dioxide, 3.5% nitrogen, and traces of other gases, most notably sulfur dioxide. The amount of nitrogen in the atmosphere is relatively small compared to the amount of carbon dioxide, but because the atmosphere is so much thicker than that on Earth, its total nitrogen content is roughly four times higher than Earth's, even though on Earth nitrogen makes up about 78% of the atmosphere.

The atmosphere contains a range of compounds in small quantities, including some based on hydrogen, such as hydrogen chloride (HCl) and hydrogen fluoride (HF). There is carbon monoxide, water vapour and atomic oxygen as well. Hydrogen is in relatively short supply in the Venusian atmosphere. A large amount of the planet's hydrogen is theorised to have been lost to space, with the remainder being mostly bound up in sulfuric acid (H2SO4). The loss of significant amounts of hydrogen is proven by a very high D–H ratio measured in the Venusian atmosphere. The ratio is about 0.015–0.025, which is 100–150 times higher than the terrestrial value of 1.6×10−4. According to some measurements, in the upper atmosphere of Venus D/H ratio is 1.5 higher than in the bulk atmosphere.

Phosphine

In 2020 there was considerable discussion regarding whether phosphine (PH3) might be present in trace amounts Venus' atmosphere. This would be noteworthy as phosphine is a potential biomarker indicating the presence of life. This was prompted by an announcement in September 2020, that this species had been detected in trace amounts. No known abiotic source present on Venus could produce phosphine in the quantities detected. On review an interpolation error was discovered that resulting in multiple spurious spectroscopic lines, including the spectral feature of phosphine. Re-analysis of data with the fixed algorithm either do not result in the detection of the phosphine or detected it with much lower concentration of 1 ppb.

The announcement promoted re-analysis of Pioneer Venus data which found part of chlorine and all of hydrogen sulfide spectral features are instead phosphine-related, meaning lower than thought concentration of chlorine and non-detection of hydrogen sulfide. Another re-analysis of archived infrared spectral measurements by the NASA Infrared Telescope Facility in 2015 did not reveal any phosphine in Venusian atmosphere, placing an upper limit for phosphine concentration at 5 ppb—a quarter of the spectroscopic value reported in September.

Troposphere

Comparison of Atmosphere Compositions – Venus, Mars, Earth (past and present).

The atmosphere is divided into a number of sections depending on altitude. The densest part of the atmosphere, the troposphere, begins at the surface and extends upwards to 65 km. At the furnace-like surface the winds are slow, but at the top of the troposphere the temperature and pressure reaches Earth-like levels and clouds pick up speed to 100 m/s (360 km/h).

1761 drawing by Mikhail Lomonosov in his work on the discovery of atmosphere of Venus

The atmospheric pressure at the surface of Venus is about 92 times that of the Earth, similar to the pressure found 900 m (3,000 ft) below the surface of the ocean. The atmosphere has a mass of 4.8×1020 kg, about 93 times the mass of the Earth's total atmosphere. The density of the air at the surface is 67 kg/m3, which is 6.5% that of liquid water on Earth. The pressure found on Venus's surface is high enough that the carbon dioxide is technically no longer a gas, but a supercritical fluid. This supercritical carbon dioxide forms a kind of sea that covers the entire surface of Venus. This sea of supercritical carbon dioxide transfers heat very efficiently, buffering the temperature changes between night and day (which last 56 terrestrial days).

The large amount of CO2 in the atmosphere together with water vapour and sulfur dioxide create a strong greenhouse effect, trapping solar energy and raising the surface temperature to around 740 K (467 °C), hotter than any other planet in the Solar System, even that of Mercury despite being located farther out from the Sun and receiving only 25% of the solar energy (per unit area) Mercury does. The average temperature on the surface is above the melting points of lead (600 K, 327 °C), tin (505 K, 232 °C), and zinc (693 K, 420 °C). The thick troposphere also makes the difference in temperature between the day and night side small, even though the slow retrograde rotation of the planet causes a single solar day to last 116.5 Earth days. The surface of Venus spends 58.3 days in darkness before the sun rises again behind the clouds.

Atmosphere 
Venusatmosphere.svg
Height
(km)
Temp.
(°C)
Atmospheric
pressure
(atm)
0 462 92.10
5 424 66.65
10 385 47.39
15 348 33.04
20 306 22.52
25 264 14.93
30 222 9.851
35 180 5.917
40 143 3.501
45 110 1.979
50 75 1.066
55 27 0.5314
60 −10 0.2357
65 −30 0.09765
70 −43 0.03690
80 −76 0.004760
90 −104 0.0003736
100 −112 0.00002660

The troposphere on Venus contains 99% of the atmosphere by mass. Ninety percent of the atmosphere of Venus is within 28 km of the surface; by comparison, 90% of the atmosphere of Earth is within 10 km of the surface. At a height of 50 km the atmospheric pressure is approximately equal to that at the surface of Earth. On the night side of Venus clouds can still be found at 80 km above the surface.

The altitude of the troposphere most similar to Earth is near the tropopause—the boundary between troposphere and mesosphere. It is located slightly above 50 km. According to measurements by the Magellan and Venus Express probes, the altitude from 52.5 to 54 km has a temperature between 293 K (20 °C) and 310 K (37 °C), and the altitude at 49.5 km above the surface is where the pressure becomes the same as Earth at sea level. As manned ships sent to Venus would be able to compensate for differences in temperature to a certain extent, anywhere from about 50 to 54 km or so above the surface would be the easiest altitude in which to base an exploration or colony, where the temperature would be in the crucial "liquid water" range of 273 K (0 °C) to 323 K (50 °C) and the air pressure the same as habitable regions of Earth. As CO2 is heavier than air, the colony's air (nitrogen and oxygen) could keep the structure floating at that altitude like a dirigible.

Circulation

The circulation in Venus's troposphere follows the so-called cyclostrophic flow. Its windspeeds are roughly determined by the balance of the pressure gradient and centrifugal forces in almost purely zonal flow. In contrast, the circulation in the Earth's atmosphere is governed by the geostrophic balance. Venus's windspeeds can be directly measured only in the upper troposphere (tropopause), between 60–70 km, altitude, which corresponds to the upper cloud deck. The cloud motion is usually observed in the ultraviolet part of the spectrum, where the contrast between clouds is the highest. The linear wind speeds at this level are about 100 ± 10 m/s at lower than 50° latitude. They are retrograde in the sense that they blow in the direction of the retrograde rotation of the planet. The winds quickly decrease towards the higher latitudes, eventually reaching zero at the poles. Such strong cloud-top winds cause a phenomenon known as the super-rotation of the atmosphere. In other words, these high-speed winds circle the whole planet faster than the planet itself rotates. The super-rotation on Venus is differential, which means that the equatorial troposphere super-rotates more slowly than the troposphere at the midlatitudes. The winds also have a strong vertical gradient. They decline deep in the troposphere with the rate of 3 m/s per km. The winds near the surface of Venus are much slower than that on Earth. They actually move at only a few kilometres per hour (generally less than 2 m/s and with an average of 0.3 to 1.0 m/s), but due to the high density of the atmosphere at the surface, this is still enough to transport dust and small stones across the surface, much like a slow-moving current of water.

Meridional (north-south) component of the atmospheric circulation in the atmosphere of Venus. Note that the meridional circulation is much lower than the zonal circulation, which transports heat between the day and night sides of the planet

All winds on Venus are ultimately driven by convection. Hot air rises in the equatorial zone, where solar heating is concentrated and flows to the poles. Such an almost-planetwide overturning of the troposphere is called Hadley circulation. However, the meridional air motions are much slower than zonal winds. The poleward limit of the planet-wide Hadley cell on Venus is near ±60° latitudes. Here air starts to descend and returns to the equator below the clouds. This interpretation is supported by the distribution of the carbon monoxide, which is also concentrated in the vicinity of ±60° latitudes. Poleward of the Hadley cell a different pattern of circulation is observed. In the latitude range 60°–70° cold polar collars exist. They are characterized by temperatures about 30–40 K lower than in the upper troposphere at nearby latitudes. The lower temperature is probably caused by the upwelling of the air in them and by the resulting adiabatic cooling. Such an interpretation is supported by the denser and higher clouds in the collars. The clouds lie at 70–72 km altitude in the collars—about 5 km higher than at the poles and low latitudes. A connection may exist between the cold collars and high-speed midlatitude jets in which winds blow as fast as 140 m/s. Such jets are a natural consequence of the Hadley-type circulation and should exist on Venus between 55–60° latitude.

Odd structures known as polar vortices lie within the cold polar collars. They are giant hurricane-like storms four times larger than their terrestrial analogs. Each vortex has two "eyes"—the centres of rotation, which are connected by distinct S-shaped cloud structures. Such double eyed structures are also called polar dipoles. Vortices rotate with the period of about 3 days in the direction of general super-rotation of the atmosphere. The linear wind speeds are 35–50 m/s near their outer edges and zero at the poles. The temperature at the cloud-tops in each polar vortex is much higher than in the nearby polar collars, reaching 250 K (−23 °C). The conventional interpretation of the polar vortices is that they are anticyclones with downwelling in the centre and upwelling in the cold polar collars. This type of circulation resembles a winter polar anticyclonic vortex on Earth, especially the one found over Antarctica. The observations in the various infrared atmospheric windows indicate that the anticyclonic circulation observed near the poles penetrates as deep as to 50 km altitude, i.e. to the base of the clouds. The polar upper troposphere and mesosphere are extremely dynamic; large bright clouds may appear and disappear over the space of a few hours. One such event was observed by Venus Express between 9 and 13 January 2007, when the south polar region became brighter by 30%. This event was probably caused by an injection of sulfur dioxide into the mesosphere, which then condensed, forming a bright haze. The two eyes in the vortices have yet to be explained.

False colour near-infrared (2.3 μm) image of the deep atmosphere of Venus obtained by Galileo. The dark spots are clouds silhouetted against the very hot lower atmosphere emitting thermal infrared radiation.

The first vortex on Venus was discovered at the north pole by the Pioneer Venus mission in 1978. A discovery of the second large 'double-eyed' vortex at the south pole of Venus was made in the summer of 2006 by Venus Express, which came with no surprise.

Images from the Akatsuki orbiter revealed something similar to jet stream winds in the low and middle cloud region, which extends from 45 to 60 kilometers in altitude. The wind speed maximized near the equator. In September 2017 JAXA scientists named this phenomenon 'Venusian equatorial jet'.

Upper atmosphere and ionosphere

The mesosphere of Venus extends from 65 km to 120 km in height, and the thermosphere begins at approximately 120 km, eventually reaching the upper limit of the atmosphere (exosphere) at about 220 to 350 km. The exosphere begins when the atmosphere becomes so thin that the average number of collisions per air molecule is less than one.

The mesosphere of Venus can be divided into two layers: the lower one between 62–73 km and the upper one between 73–95 km. In the first layer the temperature is nearly constant at 230 K (−43 °C). This layer coincides with the upper cloud deck. In the second layer, the temperature starts to decrease again, reaching about 165 K (−108 °C) at the altitude of 95 km, where mesopause begins. It is the coldest part of the Venusian dayside atmosphere. In the dayside mesopause, which serves as a boundary between the mesosphere and thermosphere and is located between 95–120 km, temperature increases to a constant—about 300–400 K (27–127 °C)—value prevalent in the thermosphere. In contrast, the nightside Venusian thermosphere is the coldest place on Venus with temperature as low as 100 K (−173 °C). It is even called a cryosphere.

The circulation patterns in the upper mesosphere and thermosphere of Venus are completely different from those in the lower atmosphere. At altitudes 90–150 km the Venusian air moves from the dayside to nightside of the planet, with upwelling over sunlit hemisphere and downwelling over dark hemisphere. The downwelling over the nightside causes adiabatic heating of the air, which forms a warm layer in the nightside mesosphere at the altitudes 90–120 km. The temperature of this layer—230 K (−43 °C)—is far higher than the typical temperature found in the nightside thermosphere—100 K (−173 °C). The air circulated from the dayside also carries oxygen atoms, which after recombination form excited molecules of oxygen in the long-lived singlet state (1Δg), which then relax and emit infrared radiation at the wavelength 1.27 μm. This radiation from the altitude range 90–100 km is often observed from the ground and spacecraft. The nightside upper mesosphere and thermosphere of Venus is also the source of non-local thermodynamic equilibrium emissions of CO2 and nitric oxide molecules, which are responsible for the low temperature of the nightside thermosphere.

The Venus Express probe has shown through stellar occultation that the atmospheric haze extends much further up on the night side than the day side. On the day side the cloud deck has a thickness of 20 km and extends up to about 65 km, whereas on the night side the cloud deck in the form of a thick haze reaches up to 90 km in altitude—well into mesosphere, continuing even further to 105 km as a more transparent haze. In 2011, the spacecraft discovered that Venus has a thin ozone layer at an altitude of 100 km.

Venus has an extended ionosphere located at altitudes 120–300 km. The ionosphere almost coincides with the thermosphere. The high levels of the ionization are maintained only over the dayside of the planet. Over the nightside the concentration of the electrons is almost zero. The ionosphere of Venus consists of three layers: v1 between 120 and 130 km, v2 between 140 and 160 km and v3 between 200 and 250 km. There may be an additional layer near 180 km. The maximum electron volume density (number of electrons in a unit of volume) of 3×1011 m−3 is reached in the v2 layer near the subsolar point. The upper boundary of the ionosphere (the ionopause) is located at altitudes 220–375 km and separates the plasma of the planetary origin from that of the induced magnetosphere. The main ionic species in the v1 and v2 layers is O2+ ion, whereas the v3 layer consists of O+ ions. The ionospheric plasma is observed to be in motion; solar photoionization on the dayside and ion recombination on the nightside are the processes mainly responsible for accelerating the plasma to the observed velocities. The plasma flow appears to be sufficient to maintain the nightside ionosphere at or near the observed median level of ion densities.

Induced magnetosphere

Venus interacts with the solar wind. Components of the induced magnetosphere are shown.

Venus is known not to have a magnetic field. The reason for its absence is not at all clear, but it may be related to a reduced intensity of convection in the Venusian mantle. Venus only has an induced magnetosphere formed by the Sun's magnetic field carried by the solar wind. This process can be understood as the field lines wrapping around an obstacle—Venus in this case. The induced magnetosphere of Venus has a bow shock, magnetosheath, magnetopause and magnetotail with the current sheet.

At the subsolar point the bow shock stands 1900 km (0.3 Rv, where Rv is the radius of Venus) above the surface of Venus. This distance was measured in 2007 near the solar activity minimum. Near the solar activity maximum it can be several times further from the planet. The magnetopause is located at the altitude of 300 km. The upper boundary of the ionosphere (ionopause) is near 250 km. Between the magnetopause and ionopause there exists a magnetic barrier—a local enhancement of the magnetic field, which prevents the solar plasma from penetrating deeper into the Venusian atmosphere, at least near solar activity minimum. The magnetic field in the barrier reaches up to 40 nT. The magnetotail continues up to ten radii from the planet. It is the most active part of the Venusian magnetosphere. There are reconnection events and particle acceleration in the tail. The energies of electrons and ions in the magnetotail are around 100 eV and 1000 eV respectively.

Due to the lack of the intrinsic magnetic field on Venus, the solar wind penetrates relatively deep into the planetary exosphere and causes substantial atmosphere loss. The loss happens mainly via the magnetotail. Currently the main ion types being lost are O+, H+ and He+. The ratio of hydrogen to oxygen losses is around 2 (i.e. almost stoichiometric) indicating the ongoing loss of water.

Clouds

Venusian clouds are thick and are composed mainly (75–96%) of sulfuric acid droplets. These clouds obscure the surface of Venus from optical imaging, and reflect about 75% of the sunlight that falls on them. The geometric albedo, a common measure of reflectivity, is the highest of any planet in the Solar System. This high reflectivity potentially enables any probe exploring the cloud tops sufficient solar energy such that solar cells can be fitted anywhere on the craft. The density of the clouds is highly variable with the densest layer at about 48.5 km, reaching 0.1 g/m3 similar to the lower range of cumulonimbus storm clouds on Earth.

The cloud cover is such that typical surface light levels are similar to a partly cloudy day on Earth, around 5000–10000 lux. The equivalent visibility is about three kilometers, but this will likely vary with the wind conditions. Little to no solar energy could conceivably be collected by solar panels on a surface probe. In fact, due to the thick, highly reflective cloud cover, the total solar energy received by the surface of the planet is less than that of the Earth, despite its proximity to the Sun.

Photograph taken by the unmanned Galileo space probe en route to Jupiter in 1990 during a Venus flyby. Smaller-scale cloud features have been emphasized and a bluish hue has been applied to show that it was taken through a violet filter.

Sulfuric acid is produced in the upper atmosphere by the Sun's photochemical action on carbon dioxide, sulfur dioxide, and water vapour. Ultraviolet photons of wavelengths less than 169 nm can photodissociate carbon dioxide into carbon monoxide and monatomic oxygen. Monatomic oxygen is highly reactive; when it reacts with sulfur dioxide, a trace component of the Venusian atmosphere, the result is sulfur trioxide, which can combine with water vapour, another trace component of Venus's atmosphere, to yield sulfuric acid.

CO2CO + O
SO2 + OSO3
2SO3 + 4H2O → 2H2SO4·H2O

Surface level humidity is less than 0.1%. Venus's sulfuric acid rain never reaches the ground, but is evaporated by the heat before reaching the surface in a phenomenon known as virga. It is theorized that early volcanic activity released sulfur into the atmosphere and the high temperatures prevented it from being trapped into solid compounds on the surface as it was on the Earth. Besides sulfuric acid, cloud droplets can contain a wide array of sulfate salts, raising pH of droplet to 1.0 in one of scenarios explaining the sulfur dioxide measurements.

In 2009 a prominent bright spot in the atmosphere was noted by an amateur astronomer and photographed by Venus Express. Its cause is currently unknown, with surface volcanism advanced as a possible explanation.

Lightning

The clouds of Venus may be capable of producing lightning, but the debate is ongoing, with volcanic lightning and sprites also under discussion. The Soviet Venera 9 and 10 orbiters obtained ambiguous optical and electromagnetic evidence of lightning. The European Space Agency's Venus Express in 2007 detected whistler waves which could be attributed to lightning. Their intermittent appearance indicates a pattern associated with weather activity. According to the whistler observations, the lightning rate is at least half of that on Earth, but this is incompatible with data from the JAXA Akatsuki spacecraft which indicate a very low flash rate.

The mechanism generating lightning on Venus, if present, remains unknown. Whilst the sulfuric acid cloud droplets can become charged, the atmosphere may be too electrically conductive for the charge to be sustained, preventing lightning.

Throughout the 1980s, it was thought that the cause of the night-side glow ("ashen glow") on Venus was lightning.

Possibility of life

Due to the harsh conditions on the surface, little of the planet has been explored; in addition to the fact that life as currently understood may not necessarily be the same in other parts of the universe, the extent of the tenacity of life on Earth itself has not yet been shown. Creatures known as extremophiles exist on Earth, preferring extreme habitats. Thermophiles and hyperthermophiles thrive at temperatures reaching above the boiling point of water, acidophiles thrive at a pH level of 3 or below, polyextremophiles can survive a varied number of extreme conditions, and many other types of extremophiles exist on Earth.

The surface temperature of Venus (over 450 °C) is far beyond the extremophile range, which extends only tens of degrees beyond 100 °C. However, the lower temperature of the cloud tops means that life could plausibly exist there, the same way that bacteria have been found living and reproducing in clouds on Earth. Any such bacteria living in the cloud tops, however, would have to be hyper-acidophilic, due to the concentrated sulfuric acid environment. Microbes in the thick, cloudy atmosphere could be protected from solar radiation by the sulfur compounds in the air.

The Venusian atmosphere has been found to be sufficiently out of equilibrium as to require further investigation. Analysis of data from the Venera, Pioneer, and Magellan missions has found hydrogen sulfide (later disputed) and sulfur dioxide (SO2) together in the upper atmosphere, as well as carbonyl sulfide (OCS). The first two gases react with each other, implying that something must produce them. Carbonyl sulfide is difficult to produce inorganically, but it is present in the Venusian atmosphere. However, the planet's volcanism could explain the presence of carbonyl sulfide. In addition, one of the early Venera probes detected large amounts of toxic chlorine just below the Venusian cloud deck.

It has been proposed that microbes at this level could be soaking up ultraviolet light from the Sun as a source of energy, which could be a possible explanation for the "unknown UV absorber" seen as dark patches on UV images of the planet. The existence of this "unknown UV absorber" prompted Carl Sagan to publish an article in 1963 proposing the hypothesis of microorganisms in the upper atmosphere as the agent absorbing the UV light. In 2012, the abundance and vertical distribution of these unknown ultraviolet absorbers in the Venusian atmosphere have been investigated from analysis of Venus Monitoring Camera images, but their composition is still unknown. In 2016, disulfur dioxide was identified as a possible candidate for causing the so far unknown UV absorption of the Venusian atmosphere. The dark patches of "unknown UV absorbers" are prominent enough to influence the weather on Venus. In 2021, it was suggested the color of "unknown UV absorber" match that of "red oil" - a known substance comprising a mixed organic carbon compounds dissolved in concentrated sulfuric acid.

In September 2020, research studies led by Cardiff University using the James Clerk Maxwell and ALMA radio telescopes noted the detection of phosphine in Venus's atmosphere that was not linked to any known abiotic method of production present, or possible under Venusian conditions. It is extremely hard to make, and the chemistry in the Venusian clouds should destroy the molecules before they could accumulate to the observed amounts. The phosphine was detected at heights of at least 48 km above the surface of Venus, and was detected primarily at mid-latitudes with none detected at the poles of Venus. Scientists note that the detection itself could be further verified beyond the use of multiple telescopes detecting the same signal, as the phosphine fingerprint described in the study could theoretically be a false signal introduced by the telescopes or by data processing. The detection was later suggested to be a false positive or true signal with much over-estimated amplitude, compatible with 1ppb concentration of phosphine. The re-analysis of ALMA dataset in April 2021 have recovered the 20ppb phosphine signal, with signal-to-noise ratio of 5.4, and by August 2021 it was confirmed the suspected contamination by sulfur dioxide was contributing only 10% to the tentative signal in phosphine spectral line band.

Evolution

Through studies of the present cloud structure and geology of the surface, combined with the fact that the luminosity of the Sun has increased by 25% since around 3.8 billion years ago, it is thought that the early environment of Venus was more like that of Earth with liquid water on the surface. At some point in the evolution of Venus, a runaway greenhouse effect occurred, leading to the current greenhouse-dominated atmosphere. The timing of this transition away from Earthlike is not known, but is estimated to have occurred around 4 billion years ago. The runaway greenhouse effect may have been caused by the evaporation of the surface water and the rise of the levels of greenhouse gases that followed. Venus's atmosphere has therefore received a great deal of attention from those studying climate change on Earth.

There are no geologic forms on the planet to suggest the presence of water over the past billion years. However, there is no reason to suppose that Venus was an exception to the processes that formed Earth and gave it its water during its early history, possibly from the original rocks that formed the planet or later on from comets. The common view among research scientists is that water would have existed for about 600 million years on the surface before evaporating, though some such as David Grinspoon believe that up to 2 billion years could also be plausible. This longer timescale for the persistence of oceans is also supported by General Circulation Model simulations incorporating the thermal effects of clouds on an evolving Venusian hydrosphere.

The early Earth during the Hadean eon is believed by most scientists to have had a Venus-like atmosphere, with roughly 100 bar of CO2 and a surface temperature of 230 °C, and possibly even sulfuric acid clouds, until about 4.0 billion years ago, by which time plate tectonics were in full force and together with the early water oceans, removed the CO2 and sulfur from the atmosphere. Early Venus would thus most likely have had water oceans like the Earth, but any plate tectonics would have ended when Venus lost its oceans. Its surface is estimated to be about 500 million years old, so it would not be expected to show evidence of plate tectonics.

Observations and measurement from Earth

Venus transits the face of the Sun on June 8, 2004, providing valuable information on the upper atmosphere through spectroscopic measurements from Earth

In 1761, Russian polymath Mikhail Lomonosov observed an arc of light surrounding the part of Venus off the Sun's disc at the beginning of the egress phase of the transit and concluded that Venus has an atmosphere. In 1940, Rupert Wildt calculated that the amount of CO2 in the Venusian atmosphere would raise surface temperature above the boiling point for water. This was confirmed when Mariner 2 made radiometer measurements of the temperature in 1962. In 1967, Venera 4 confirmed that the atmosphere consisted primarily of carbon dioxide.

The upper atmosphere of Venus can be measured from Earth when the planet crosses the sun in a rare event known as a solar transit. The last solar transit of Venus occurred in 2012. Using quantitative astronomical spectroscopy, scientists were able to analyze sunlight that passed through the planet's atmosphere to reveal chemicals within it. As the technique to analyse light to discover information about a planet's atmosphere only first showed results in 2001, this was the first opportunity to gain conclusive results in this way on the atmosphere of Venus since observation of solar transits began. This solar transit was a rare opportunity considering the lack of information on the atmosphere between 65 and 85 km. The solar transit in 2004 enabled astronomers to gather a large amount of data useful not only in determining the composition of the upper atmosphere of Venus, but also in refining techniques used in searching for extrasolar planets. The atmosphere of mostly CO2, absorbs near-infrared radiation, making it easy to observe. During the 2004 transit, the absorption in the atmosphere as a function of wavelength revealed the properties of the gases at that altitude. The Doppler shift of the gases also enabled wind patterns to be measured.

A solar transit of Venus is an extremely rare event, and the last solar transit of the planet before 2004 was in 1882. The most recent solar transit was in 2012; the next one will not occur until 2117.

Space missions

Recent and current spaceprobes

This image shows Venus in ultraviolet, seen by the Akatsuki mission.

The Venus Express spacecraft formerly in orbit around the planet probed deeper into the atmosphere using infrared imaging spectroscopy in the 1–5 µm spectral range.

The JAXA probe Akatsuki (Venus Climate Orbiter), launched in May 2010, is studying the planet for a period of two years, including the structure and activity of the atmosphere, but it failed to enter Venus orbit in December 2010. A second attempt to achieve orbit succeeded 7 December 2015. Designed specifically to study the planet's climate, Akatsuki is the first meteorology satellite to orbit Venus (the first for a planet other than Earth). One of its five cameras known as the "IR2" will be able to probe the atmosphere of the planet underneath its thick clouds, in addition to its movement and distribution of trace components. With a highly eccentric orbit (periapsis altitude of 400 km and apoapsis of 310,000 km), it will be able to take close-up photographs of the planet, and should also confirm the presence of both active volcanoes as well as lightning.

Venus In-Situ Explorer proposed by NASA's New Frontiers program

Proposed missions

The Venus In-Situ Explorer, proposed by NASA's New Frontiers program is a proposed probe which would aid in understanding the processes on the planet that led to climate change, as well as paving the way towards a later sample return mission.

A craft called the Venus Mobile Explorer has been proposed by the Venus Exploration Analysis Group (VEXAG) to study the composition and isotopic measurements of the surface and the atmosphere, for about 90 days. The mission has not been selected for launch.

After missions discovered the reality of the harsh nature of the planet's surface, attention shifted towards other targets such as Mars. There have been a number of proposed missions afterward, however, and many of these involve the little-known upper atmosphere. The Soviet Vega program in 1985 dropped two balloons into the atmosphere, but these were battery-powered and lasted for only about two Earth days each before running out of power. Since then, there has been no exploration of the upper atmosphere. In 2002, the NASA contractor Global Aerospace proposed a balloon that would be capable of staying in the upper atmosphere for hundreds of Earth days as opposed to two.

A solar flyer has also been proposed by Geoffrey A. Landis in place of a balloon, and the idea has been featured from time to time since the early 2000s. Venus has a high albedo, and reflects most of the sunlight that shines on it making the surface quite dark, the upper atmosphere at 60 km has an upward solar intensity of 90%, meaning that solar panels on both the top and the bottom of a craft could be used with nearly equal efficiency. In addition to this, the slightly lower gravity, high air pressure and slow rotation allowing for perpetual solar power make this part of the planet ideal for exploration. The proposed flyer would operate best at an altitude where sunlight, air pressure, and wind speed would enable it to remain in the air perpetually, with slight dips down to lower altitudes for a few hours at a time before returning to higher altitudes. As sulfuric acid in the clouds at this height is not a threat for a properly shielded craft, this so-called "solar flyer" would be able to measure the area in between 45 km and 60 km indefinitely, for however long it takes for mechanical error or unforeseen problems to cause it to fail. Landis also proposed that rovers similar to Spirit and Opportunity could possibly explore the surface, with the difference being that Venus surface rovers would be "dumb" rovers controlled by radio signals from computers located in the flyer above, only requiring parts such as motors and transistors to withstand the surface conditions, but not weaker parts involved in microelectronics that could not be made resistant to the heat, pressure and acidic conditions.

Russian space science plans include the launch of the Venera-D (Venus-D) probe in 2029. The main scientific goals of the Venera-D mission are investigation of the structure and chemical composition of the atmosphere and investigation of the upper atmosphere, ionosphere, electrical activity, magnetosphere, and escape rate. It has been proposed to fly together with Venera-D an inflatable aircraft designed by Northrop Grumman, called Venus Atmospheric Maneuverable Platform (VAMP).

The High Altitude Venus Operational Concept (HAVOC) is a NASA concept for a manned exploration of Venus. Rather than traditional landings, it would send crews into the upper atmosphere, using dirigibles. Other proposals from the late 2010s include VERITAS, Venus Origins Explorer, VISAGE, and VICI. In June 2018, NASA also awarded a contract to Black Swift Technologies for a concept study of a Venus glider that would exploit wind shear for lift and speed.

Artist's concept of the planned DAVINCI+ probe's descent stages through Venus' atomosphere

In June 2021, NASA selected the DAVINCI+ mission to send an atmospheric probe to Venus in the late 2020s. DAVINCI+ will measure the composition of Venus’ atmosphere to understand how it formed and evolved, as well as determine whether the planet ever had an ocean. The mission consists of a descent sphere that will plunge through the planet’s thick atmosphere, making measurements of noble gases and other elements to understand Venus’ climate change. This will be the first U.S.-led mission to Venus’ atmosphere since 1978.

 

Cryptocurrency

From Wikipedia, the free encyclopedia

A logo for Bitcoin, the first decentralized cryptocurrency

A cryptocurrency, crypto-currency, or crypto is a collection of binary data which is designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger which is a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. Some crypto schemes use validators to maintain the cryptocurrency. In a proof-of-stake model, owners put up their tokens as collateral. In return, they get authority over the token in proportion to the amount they stake. Generally, these token stakers get additional ownership in the token over time via network fees, newly minted tokens or other such reward mechanisms. Cryptocurrency does not exist in physical form (like paper money) and is typically not issued by a central authority. Cryptocurrencies typically use decentralized control as opposed to a central bank digital currency (CBDC). When a cryptocurrency is minted or created prior to issuance or issued by a single issuer, it is generally considered centralized. When implemented with decentralized control, each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.

Bitcoin, first released as open-source software in 2009, is the first decentralized cryptocurrency. Since the release of bitcoin, many other cryptocurrencies have been created.

History

In 1983, the American cryptographer David Chaum conceived an anonymous cryptographic electronic money called ecash. Later, in 1995, he implemented it through Digicash, an early form of cryptographic electronic payments which required user software in order to withdraw notes from a bank and designate specific encrypted keys before it can be sent to a recipient. This allowed the digital currency to be untraceable by the issuing bank, the government, or any third party.

In 1996, the National Security Agency published a paper entitled How to Make a Mint: the Cryptography of Anonymous Electronic Cash, describing a Cryptocurrency system, first publishing it in an MIT mailing list and later in 1997, in The American Law Review (Vol. 46, Issue 4).

In 1998, Wei Dai published a description of "b-money", characterized as an anonymous, distributed electronic cash system. Shortly thereafter, Nick Szabo described bit gold. Like bitcoin and other cryptocurrencies that would follow it, bit gold (not to be confused with the later gold-based exchange, BitGold) was described as an electronic currency system which required users to complete a proof of work function with solutions being cryptographically put together and published.

In 2009, the first decentralized cryptocurrency, bitcoin, was created by presumably pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, in its proof-of-work scheme. In April 2011, Namecoin was created as an attempt at forming a decentralized DNS, which would make internet censorship very difficult. Soon after, in October 2011, Litecoin was released. It used scrypt as its hash function instead of SHA-256. Another notable cryptocurrency, Peercoin, used a proof-of-work/proof-of-stake hybrid.

On 6 August 2014, the UK announced its Treasury had commissioned a study of cryptocurrencies, and what role, if any, they could play in the UK economy. The study was also to report on whether regulation should be considered. Its final report was published in 2018, and it issued a consultation on cryptoassets and stablecoins in January 2021.

In June 2021, El Salvador became the first country to accept Bitcoin as legal tender, after the Legislative Assembly had voted 62–22 to pass a bill submitted by President Nayib Bukele classifying the cryptocurrency as such.

In August 2021, Cuba followed with Resolution 215 to accept Bitcoin as legal tender, which will circumvent U.S. sanctions.

In September 2021, the government of China, the single largest market for cryptocurrency, declared all cryptocurrency transactions illegal, completing a crackdown on cryptocurrency that had previously banned the operation of intermediaries and miners within China.

Formal definition

According to Jan Lansky, a cryptocurrency is a system that meets six conditions:

  1. The system does not require a central authority; its state is maintained through distributed consensus.
  2. The system keeps an overview of cryptocurrency units and their ownership.
  3. The system defines whether new cryptocurrency units can be created. If new cryptocurrency units can be created, the system defines the circumstances of their origin and how to determine the ownership of these new units.
  4. Ownership of cryptocurrency units can be proved exclusively cryptographically.
  5. The system allows transactions to be performed in which ownership of the cryptographic units is changed. A transaction statement can only be issued by an entity proving the current ownership of these units.
  6. If two different instructions for changing the ownership of the same cryptographic units are simultaneously entered, the system performs at most one of them.

In March 2018, the word cryptocurrency was added to the Merriam-Webster Dictionary.

Altcoins

Tokens, cryptocurrencies, and other types of digital assets that are not bitcoin are collectively known as alternative cryptocurrencies, typically shortened to "altcoins" or "alt coins". Paul Vigna of The Wall Street Journal also described altcoins as "alternative versions of bitcoin" given its role as the model protocol for altcoin designers. The term is commonly used to describe coins and tokens created after bitcoin. A list of some cryptocurrencies can be found in the List of cryptocurrencies article.

Altcoins often have underlying differences with bitcoin. For example, Litecoin aims to process a block every 2.5 minutes, rather than bitcoin's 10 minutes, which allows Litecoin to confirm transactions faster than bitcoin. Another example is Ethereum, which has smart contract functionality that allows decentralized applications to be run on its blockchain. Ethereum was the most used blockchain in 2020, according to Bloomberg News. In 2016, it had the largest "following" of any altcoin, according to the New York Times.

Significant rallies across altcoin markets are often referred to as an "altseason".

Stablecoins

Stablecoins are altcoins that are designed to maintain a stable level of purchasing power. There are four primary types of stablecoins: fiat-backed stablecoins, cryptocurrency-backed stablecoins, algorithmic stablecoins, and commodity-backed stablecoins. Fiat-backed stablecoins like USD Coin maintain their price stability by being reserved with cash and US treasuries. Cryptocurrency-backed stablecoins like DAI are reserved by digital assets like Ethereum, typically in an overcollateralized manner so if the price of ETH drops below the loan-to-value ratio, the collateral is liquidated to maintain DAI's peg to the US Dollar. Algorithmic stablecoins, or Seigniorage-style stablecoins, use economic mechanisms to maintain price stability without requiring fiat or cryptocurrency collateralization.

Crypto token

A blockchain account can provide functions other than making payments, for example in decentralized applications or smart contracts. (Units of) fungible tokens are sometimes referred to as crypto tokens (or cryptotokens). These terms are usually reserved for other fungible tokens than the main cryptocurrency of the blockchain, that is, usually, for fungible tokens issued within a smart contract running on top of a blockchain such as Ethereum. There are also non-fungible tokens.

Architecture

Decentralized cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is defined when the system is created and which is publicly known. In centralized banking and economic systems such as the Federal Reserve System, corporate boards or governments control the supply of currency by printing units of fiat money or demanding additions to digital banking ledgers. In the case of decentralized cryptocurrency, companies or governments cannot produce new units, and have not so far provided backing for other firms, banks or corporate entities which hold asset value measured in it. The underlying technical system upon which decentralized cryptocurrencies are based was created by the group or individual known as Satoshi Nakamoto.

As of May 2018, over 1,800 cryptocurrency specifications existed. Within a proof-of-work cryptocurrency system such as Bitcoin, the safety, integrity and balance of ledgers is maintained by a community of mutually distrustful parties referred to as miners: who use their computers to help validate and timestamp transactions, adding them to the ledger in accordance with a particular timestamping scheme. In a proof-of-stake (PoS) blockchain, transactions are validated by holders of the associated cryptocurrency, sometimes grouped together in stake pools.

Most cryptocurrencies are designed to gradually decrease the production of that currency, placing a cap on the total amount of that currency that will ever be in circulation. Compared with ordinary currencies held by financial institutions or kept as cash on hand, cryptocurrencies can be more difficult for seizure by law enforcement.

Blockchain

The validity of each cryptocurrency's coins is provided by a blockchain. A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a timestamp and transaction data. By design, blockchains are inherently resistant to modification of the data. It is "an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way". For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority.

Blockchains are secure by design and are an example of a distributed computing system with high Byzantine fault tolerance. Decentralized consensus has therefore been achieved with a blockchain.

Nodes

In the world of Cryptocurrency, a node is a computer that connects to a cryptocurrency network. The node supports the relevant cryptocurrency's network through either; relaying transactions, validation or hosting a copy of the blockchain. In terms of relaying transactions each network computer (node) has a copy of the blockchain of the cryptocurrency it supports, when a transaction is made the node creating the transaction broadcasts details of the transaction using encryption to other nodes throughout the node network so that the transaction (and every other transaction) is known.

Node owners are either volunteers, those hosted by the organisation or body responsible for developing the cryptocurrency blockchain network technology or those that are enticed to host a node to receive rewards from hosting the node network.

Timestamping

Cryptocurrencies use various timestamping schemes to "prove" the validity of transactions added to the blockchain ledger without the need for a trusted third party.

The first timestamping scheme invented was the proof-of-work scheme. The most widely used proof-of-work schemes are based on SHA-256 and scrypt.

Some other hashing algorithms that are used for proof-of-work include CryptoNight, Blake, SHA-3, and X11.

The proof-of-stake is a method of securing a cryptocurrency network and achieving distributed consensus through requesting users to show ownership of a certain amount of currency. It is different from proof-of-work systems that run difficult hashing algorithms to validate electronic transactions. The scheme is largely dependent on the coin, and there's currently no standard form of it. Some cryptocurrencies use a combined proof-of-work and proof-of-stake scheme.

Mining

Hashcoin mine

In cryptocurrency networks, mining is a validation of transactions. For this effort, successful miners obtain new cryptocurrency as a reward. The reward decreases transaction fees by creating a complementary incentive to contribute to the processing power of the network. The rate of generating hashes, which validate any transaction, has been increased by the use of specialized machines such as FPGAs and ASICs running complex hashing algorithms like SHA-256 and scrypt. This arms race for cheaper-yet-efficient machines has existed since the day the first cryptocurrency, bitcoin, was introduced in 2009. With more people venturing into the world of virtual currency, generating hashes for this validation has become far more complex over the years, with miners having to invest large sums of money on employing multiple high performance ASICs. Thus the value of the currency obtained for finding a hash often does not justify the amount of money spent on setting up the machines, the cooling facilities to overcome the heat they produce, and the electricity required to run them. Favorite regions for mining include those with cheap electricity, a cold climate, and jurisdictions with clear and conducive regulations. As of July 2019, bitcoin's electricity consumption is estimated to about 7 gigawatts, 0.2% of the global total, or equivalent to that of Switzerland.

Some miners pool resources, sharing their processing power over a network to split the reward equally, according to the amount of work they contributed to the probability of finding a block. A "share" is awarded to members of the mining pool who present a valid partial proof-of-work.

As of February 2018, the Chinese Government halted trading of virtual currency, banned initial coin offerings and shut down mining. Many Chinese miners have since relocated to Canada and Texas. One company is operating data centers for mining operations at Canadian oil and gas field sites, due to low gas prices. In June 2018, Hydro Quebec proposed to the provincial government to allocate 500 MW to crypto companies for mining. According to a February 2018 report from Fortune, Iceland has become a haven for cryptocurrency miners in part because of its cheap electricity.

In March 2018, the city of Plattsburgh in upstate New York put an 18-month moratorium on all cryptocurrency mining in an effort to preserve natural resources and the "character and direction" of the city.

GPU price rise

An increase in cryptocurrency mining increased the demand for graphics cards (GPU) in 2017. (The computing power of GPUs makes them well-suited to generating hashes.) Popular favorites of cryptocurrency miners such as Nvidia's GTX 1060 and GTX 1070 graphics cards, as well as AMD's RX 570 and RX 580 GPUs, doubled or tripled in price – or were out of stock. A GTX 1070 Ti which was released at a price of $450 sold for as much as $1100. Another popular card GTX 1060's 6 GB model was released at an MSRP of $250, sold for almost $500. RX 570 and RX 580 cards from AMD were out of stock for almost a year. Miners regularly buy up the entire stock of new GPU's as soon as they are available.

Nvidia has asked retailers to do what they can when it comes to selling GPUs to gamers instead of miners. "Gamers come first for Nvidia," said Boris Böhles, PR manager for Nvidia in the German region.

Wallets

An example paper printable bitcoin wallet consisting of one bitcoin address for receiving and the corresponding private key for spending
 

A cryptocurrency wallet stores the public and private "keys" (address) or seed which can be used to receive or spend the cryptocurrency. With the private key, it is possible to write in the public ledger, effectively spending the associated cryptocurrency. With the public key, it is possible for others to send currency to the wallet.

There exist multiple methods of storing keys or seed in a wallet from using paper wallets which are traditional public, private or seed keys written on paper to using hardware wallets which are dedicated hardware to securely store your wallet information, using a digital wallet which is a computer with a software hosting your wallet information, hosting your wallet using an exchange where cryptocurrency is traded. or by storing your wallet information on a digital medium such as plaintext.

Anonymity

Bitcoin is pseudonymous rather than anonymous in that the cryptocurrency within a wallet is not tied to people, but rather to one or more specific keys (or "addresses"). Thereby, bitcoin owners are not identifiable, but all transactions are publicly available in the blockchain. Still, cryptocurrency exchanges are often required by law to collect the personal information of their users.

Additions such as Monero, Zerocoin, Zerocash and CryptoNote have been suggested, which would allow for additional anonymity and fungibility.

Economics

Cryptocurrencies are used primarily outside existing banking and governmental institutions and are exchanged over the Internet.

Block rewards

Proof-of-work cryptocurrencies, such as bitcoin, offer block rewards incentives for miners. There has been an implicit belief that whether miners are paid by block rewards or transaction fees does not affect the security of the blockchain, but a study suggests that this may not be the case under certain circumstances.

The rewards paid to miners increase the supply of the cryptocurrency. By making sure that verifying transactions is a costly business, the integrity of the network can be preserved as long as benevolent nodes control a majority of computing power. The verification algorithm requires a lot of processing power, and thus electricity in order to make verification costly enough to accurately validate public blockchain. Not only do miners have to factor in the costs associated with expensive equipment necessary to stand a chance of solving a hash problem, they further must consider the significant amount of electrical power in search of the solution. Generally, the block rewards outweigh electricity and equipment costs, but this may not always be the case.

The current value, not the long-term value, of the cryptocurrency supports the reward scheme to incentivize miners to engage in costly mining activities. Some sources claim that the current bitcoin design is very inefficient, generating a welfare loss of 1.4% relative to an efficient cash system. The main source for this inefficiency is the large mining cost, which is estimated to be US$360 Million per year. This translates into users being willing to accept a cash system with an inflation rate of 230% before being better off using bitcoin as a means of payment. However, the efficiency of the bitcoin system can be significantly improved by optimizing the rate of coin creation and minimizing transaction fees. Another potential improvement is to eliminate inefficient mining activities by changing the consensus protocol altogether.

Transaction fees

Transaction fees for cryptocurrency depend mainly on the supply of network capacity at the time, versus the demand from the currency holder for a faster transaction. The currency holder can choose a specific transaction fee, while network entities process transactions in order of highest offered fee to lowest. Cryptocurrency exchanges can simplify the process for currency holders by offering priority alternatives and thereby determine which fee will likely cause the transaction to be processed in the requested time.

For ether, transaction fees differ by computational complexity, bandwidth use, and storage needs, while bitcoin transaction fees differ by transaction size and whether the transaction uses SegWit. In September 2018, the median transaction fee for ether corresponded to $0.017, while for bitcoin it corresponded to $0.55.

Some cryptocurrencies have no transaction fees, and instead rely on client-side proof-of-work as the transaction prioritization and anti-spam mechanism.

Exchanges

Cryptocurrency exchanges allow customers to trade cryptocurrencies for other assets, such as conventional fiat money, or to trade between different digital currencies.

Atomic swaps

Atomic swaps are a mechanism where one cryptocurrency can be exchanged directly for another cryptocurrency, without the need for a trusted third party such as an exchange.

ATMs

Jordan Kelley, founder of Robocoin, launched the first bitcoin ATM in the United States on 20 February 2014. The kiosk installed in Austin, Texas, is similar to bank ATMs but has scanners to read government-issued identification such as a driver's license or a passport to confirm users' identities.

Initial coin offerings

An initial coin offering (ICO) is a controversial means of raising funds for a new cryptocurrency venture. An ICO may be used by startups with the intention of avoiding regulation. However, securities regulators in many jurisdictions, including in the U.S., and Canada, have indicated that if a coin or token is an "investment contract" (e.g., under the Howey test, i.e., an investment of money with a reasonable expectation of profit based significantly on the entrepreneurial or managerial efforts of others), it is a security and is subject to securities regulation. In an ICO campaign, a percentage of the cryptocurrency (usually in the form of "tokens") is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, often bitcoin or ether.

According to PricewaterhouseCoopers, four of the 10 biggest proposed initial coin offerings have used Switzerland as a base, where they are frequently registered as non-profit foundations. The Swiss regulatory agency FINMA stated that it would take a "balanced approach" to ICO projects and would allow "legitimate innovators to navigate the regulatory landscape and so launch their projects in a way consistent with national laws protecting investors and the integrity of the financial system." In response to numerous requests by industry representatives, a legislative ICO working group began to issue legal guidelines in 2018, which are intended to remove uncertainty from cryptocurrency offerings and to establish sustainable business practices.

Trends

The "market cap" of any coin is calculated by multiplying the price by the number of coins in circulation. The total cryptocurrency market cap has historically been dominated by Bitcoin accounting for at least 50% of the market cap value where altcoins have increased and decreased in market cap value in relation to Bitcoin. Bitcoin's value is largely determined by speculation among other technological limiting factors known as block chain rewards coded into the architecture technology of Bitcoin itself. The cryptocurrency market cap follows a trend known as the "halving", which is when the block rewards received from Bitcoin are halved due to technological mandated limited factors instilled into Bitcoin which in turn limits the supply of Bitcoin. As the date reaches near of an halving (twice thus far historically) the cryptocurrency market cap increases, followed by a downtrend.

By mid-June 2021 cryptocurrency as an admittedly extremely volatile asset class for portfolio diversification had begun to be offered by some wealth managers in the US for 401(k)s.

Increased regulation in 2021

The rise in the popularity of cryptocurrencies and their adoption by financial institutions has led some governments to assess whether regulation is needed to protect users. The Financial Action Task Force (FATF) has defined cryptocurrency-related services as "virtual asset service providers" and recommended that they be regulated with the same money laundering (AML) and know your customer (KYC) requirements as financial institutions.

The European Commission published a digital finance strategy in September 2020. This included a draft regulation on Markets in Crypto-Assets (MiCA), which aimed to provide a comprehensive regulatory framework for digital assets in the EU.

On 10 June 2021, The Basel Committee on Banking Supervision proposed that banks that held cryptocurrency assets must set aside capital to cover all potential losses. For instance, if a bank were to hold bitcoin worth $2 billion, it would be required to set aside enough capital to cover the entire $2 billion. This is a more extreme standard than banks are usually held to when it comes to other assets. However, this is a proposal and not a regulation.

United States

The U.S. Securities and Exchange Commission (SEC) is considering what steps to take. On July 8, 2021, Senator Elizabeth Warren, who is part of the Senate Banking Committee, wrote to the chairman of the SEC and demanded that it provided answers on cryptocurrency regulation by July 28, 2021 due to the increase in cryptocurrency exchange use and the danger this poses to consumers.

China

On 18 May 2021, China banned financial institutions and payment companies from being able to provide cryptocurrency transaction related services. This led to a sharp fall in the price of the biggest proof of work cryptocurrencies. For instance, Bitcoin fell 31%, Ethereum fell 44%, Binance Coin fell 32% and Dogecoin fell 30%. Proof of work mining was the next focus, with regulators in popular mining regions citing the use of electricity generated from highly polluting sources such as coal to create Bitcoin and Ethereum.

In September 2021, the Chinese government declared all cryptocurrency transactions of any kind illegal, completing its crackdown on crytocurrency.

United Kingdom

In the United Kingdom, as of 10 January 2021, all cryptocurrency firms, such as exchanges, advisors and professionals that have either a presence, market product or provide services within the UK market must register with the Financial Conduct Authority. Additionally, on 27 June 2021, the financial watchdog demanded that Binance, the world's largest cryptocurrency exchange, cease all regulated activities in the UK. Some commentators believe this is a sign of what is to come in terms of stringent regulation of the UK cryptocurrency market.

South Africa

South Africa, who has seen a large amount of scams related to cryptocurrency is said to be putting a regulatory timeline in place, that will produce a regulatory framework. The largest scam occurred in April 2021, where the two founders of an African-based cryptocurrency exchange called Africrypt, Raees Cajee and Ameer Cajee, disappeared with $3.8 billion worth of Bitcoin. Additionally, Mirror Trading International disappeared with $170 million worth of cryptocurrency in January 2021.

South Korea

In March 2021, South Korea implemented new legislation to strengthen their oversight of digital assets. This legislation requires all digital asset managers, providers and exchanges are registered with the Korea Financial Intelligence Unit in order to operate in South Korea. Registering with this unit requires that all exchanges are certified by the Information Security Management System and that they ensure all customers have real name bank accounts, that the CEO and board members of the exchanges have not been convicted of any crimes and that the exchange holds sufficient levels of deposit insurance to cover losses arising from hacks.

Turkey

Turkey's central bank, the Central Bank of the Republic of Turkey, banned the use of cryptocurrencies and crypto assets for making purchases from 30 April 2021, on the ground that the use of cryptocurrencies for such payments poses significant transaction risks.

El Salvador

On 9 June 2021, El Salvador announced that it will adopt Bitcoin as legal tender, the first country to do so.

Cuba

In August 2021, Cuba recognized cryptocurrency as legal tender, the second country to do so.

Legality

The legal status of cryptocurrencies varies substantially from country to country and is still undefined or changing in many of them. At least one study has shown that broad generalizations about the use of bitcoin in illicit finance are significantly overstated and that blockchain analysis is an effective crime fighting and intelligence gathering tool. While some countries have explicitly allowed their use and trade, others have banned or restricted it. According to the Library of Congress, an "absolute ban" on trading or using cryptocurrencies applies in eight countries: Algeria, Bolivia, Egypt, Iraq, Morocco, Nepal, Pakistan, and the United Arab Emirates. An "implicit ban" applies in another 15 countries, which include Bahrain, Bangladesh, China, Colombia, the Dominican Republic, Indonesia, Iran, Kuwait, Lesotho, Lithuania, Macau, Oman, Qatar, Saudi Arabia and Taiwan. In the United States and Canada, state and provincial securities regulators, coordinated through the North American Securities Administrators Association, are investigating "bitcoin scams" and ICOs in 40 jurisdictions.

Various government agencies, departments, and courts have classified bitcoin differently. China Central Bank banned the handling of bitcoins by financial institutions in China in early 2014.

In Russia, though cryptocurrencies are legal, it is illegal to actually purchase goods with any currency other than the Russian ruble. Regulations and bans that apply to bitcoin probably extend to similar cryptocurrency systems.

Cryptocurrencies are a potential tool to evade economic sanctions, for example against Russia, Iran, or Venezuela. Russia also secretly supported Venezuela with the creation of the petro (El Petro), a national cryptocurrency initiated by the Maduro government to obtain valuable oil revenues by circumventing US sanctions.

In August 2018, the Bank of Thailand announced its plans to create its own cryptocurrency, the Central Bank Digital Currency (CBDC).

Advertising bans

Cryptocurrency advertisements have been temporarily banned on Facebook, Google, Twitter, Bing, Snapchat, LinkedIn and MailChimp. Chinese internet platforms Baidu, Tencent, and Weibo have also prohibited bitcoin advertisements. The Japanese platform Line and the Russian platform Yandex have similar prohibitions.

U.S. tax status

On 25 March 2014, the United States Internal Revenue Service (IRS) ruled that bitcoin will be treated as property for tax purposes. Bitcoin is therefore subject to capital gains tax. Researchers from Oxford and Warwick showed that bitcoin has characteristics similar to the precious metals market rather than the fiat currencies, and were hence in agreement with the IRS decision, even if based on different reasons.

In July 2019, the IRS issued letters to cryptocurrency owners instructing them to amend returns and pay taxes.

The legal concern of an unregulated global economy

As the popularity of and demand for online currencies has increased since the inception of bitcoin in 2009, so have concerns that such an unregulated person to person global economy that cryptocurrencies offer may become a threat to society. Concerns abound that altcoins may become tools for anonymous web criminals.

Cryptocurrency networks display a lack of regulation that has been criticized as enabling criminals who seek to evade taxes and launder money. Money laundering issues are also present in regular bank transfers, however with bank-to-bank wire transfers for instance, the account holder must at least provide a proven identity.

Transactions that occur through the use and exchange of these altcoins are independent from formal banking systems, and therefore can make tax evasion simpler for individuals. Since charting taxable income is based upon what a recipient reports to the revenue service, it becomes extremely difficult to account for transactions made using existing cryptocurrencies, a mode of exchange that is complex and difficult to track.

Systems of anonymity that most cryptocurrencies offer can also serve as a simpler means to launder money. Rather than laundering money through an intricate net of financial actors and offshore bank accounts, laundering money through altcoins can be achieved through anonymous transactions.

Loss, theft, and fraud

In February 2014, the world's largest bitcoin exchange, Mt. Gox, declared bankruptcy. The company stated that it had lost nearly $473 million of their customers' bitcoins likely due to theft, which Mt. Gox blamed on hackers who exploited transaction malleability problems in the network. This was equivalent to approximately 750,000 bitcoins, or about 7% of all the bitcoins in existence. The price of a bitcoin fell from a high of about $1,160 in December to under $400 in February.

Two members of the Silk Road Task Force—a multi-agency federal task force that carried out the U.S. investigation of Silk Road—seized bitcoins for their own use in the course of the investigation. DEA agent Carl Mark Force IV, who attempted to extort Silk Road founder Ross Ulbricht ("Dread Pirate Roberts"), pleaded guilty to money laundering, obstruction of justice, and extortion under color of official right, and was sentenced to 6.5 years in federal prison. U.S. Secret Service agent Shaun Bridges pleaded guilty to crimes relating to his diversion of $800,000 worth of bitcoins to his personal account during the investigation, and also separately pleaded guilty to money laundering in connection with another cryptocurrency theft; he was sentenced to nearly eight years in federal prison.

Homero Josh Garza, who founded the cryptocurrency startups GAW Miners and ZenMiner in 2014, acknowledged in a plea agreement that the companies were part of a pyramid scheme, and pleaded guilty to wire fraud in 2015. The U.S. Securities and Exchange Commission separately brought a civil enforcement action against Garza, who was eventually ordered to pay a judgment of $9.1 million plus $700,000 in interest. The SEC's complaint stated that Garza, through his companies, had fraudulently sold "investment contracts representing shares in the profits they claimed would be generated" from mining.

On 21 November 2017, the Tether cryptocurrency announced they were hacked, losing $31 million in USDT from their primary wallet. The company has 'tagged' the stolen currency, hoping to 'lock' them in the hacker's wallet (making them unspendable). Tether indicates that it is building a new core for its primary wallet in response to the attack in order to prevent the stolen coins from being used.

In May 2018, Bitcoin Gold (and two other cryptocurrencies) were hit by a successful 51% hashing attack by an unknown actor, in which exchanges lost estimated $18m. In June 2018, Korean exchange Coinrail was hacked, losing US$37 million worth of altcoin. Fear surrounding the hack was blamed for a $42 billion cryptocurrency market selloff. On 9 July 2018 the exchange Bancor had $23.5 million in cryptocurrency stolen.

The French regulator Autorité des marchés financiers (AMF) lists 15 websites of companies that solicit investment in cryptocurrency without being authorised to do so in France.

A 2020 EU report found that users had lost crypto-assets worth hundreds of millions of US dollars in security breaches at exchanges and storage providers. From 2011 to 2019, between four and 12 breaches were identified a year. In 2019, thefts were reported to have exceeded a value of $1 billion. Stolen assets "typically find their way to illegal markets and are used to fund further criminal activity".

Darknet markets

Properties of cryptocurrencies gave them popularity in applications such as a safe haven in banking crises and means of payment, which also led to the cryptocurrency use in controversial settings in the form of online black markets, such as Silk Road. The original Silk Road was shut down in October 2013 and there have been two more versions in use since then. In the year following the initial shutdown of Silk Road, the number of prominent dark markets increased from four to twelve, while the amount of drug listings increased from 18,000 to 32,000.

Darknet markets present challenges in regard to legality. Cryptocurrency used in dark markets are not clearly or legally classified in almost all parts of the world. In the U.S., bitcoins are labelled as "virtual assets". This type of ambiguous classification puts pressure on law enforcement agencies around the world to adapt to the shifting drug trade of dark markets.

Reception

Speculation, fraud and adoption

Cryptocurrencies have been compared to Ponzi schemes, pyramid schemes and economic bubbles, such as housing market bubbles. Howard Marks of Oaktree Capital Management stated in 2017 that digital currencies were "nothing but an unfounded fad (or perhaps even a pyramid scheme), based on a willingness to ascribe value to something that has little or none beyond what people will pay for it", and compared them to the tulip mania (1637), South Sea Bubble (1720), and dot-com bubble (1999). The New Yorker has explained the debate based on interviews with blockchain founders in an article about the "argument over whether Bitcoin, Ethereum, and the blockchain are transforming the world".

While cryptocurrencies are digital currencies that are managed through advanced encryption techniques, many governments have taken a cautious approach toward them, fearing their lack of central control and the effects they could have on financial security. Regulators in several countries have warned against cryptocurrency and some have taken measures to dissuade users. However, research in 2021 by the UK's financial regulator suggested such warnings went unheard, or ignored. Fewer than one in 10 potential cryptocurrency buyers were aware of consumer warnings on the FCA website, and 12% of crypto users were not aware that their holdings were not protected by statutory compensation.

Additionally, many banks do not offer services for cryptocurrencies and can refuse to offer services to virtual-currency companies. Gareth Murphy, a senior central banking officer has stated "widespread use [of cryptocurrency] would also make it more difficult for statistical agencies to gather data on economic activity, which are used by governments to steer the economy". He cautioned that virtual currencies pose a new challenge to central banks' control over the important functions of monetary and exchange rate policy. While traditional financial products have strong consumer protections in place, there is no intermediary with the power to limit consumer losses if bitcoins are lost or stolen. One of the features cryptocurrency lacks in comparison to credit cards, for example, is consumer protection against fraud, such as chargebacks.

The cryptocurrency community refers to pre-mining, hidden launches, ICO or extreme rewards for the altcoin founders as a deceptive practice. It can also be used as an inherent part of a cryptocurrency's design. Pre-mining means currency is generated by the currency's founders prior to being released to the public.

Paul Krugman, winner of the Nobel Memorial Prize in Economic Sciences, has repeated numerous times that it is a bubble that will not last and links it to Tulip mania. American business magnate Warren Buffett thinks that cryptocurrency will come to a bad ending. In October 2017, BlackRock CEO Laurence D. Fink called bitcoin an "index of money laundering". "Bitcoin just shows you how much demand for money laundering there is in the world," he said.

Banks

As the first big Wall Street bank to embrace cryptocurrencies, Morgan Stanley announced on 17 March 2021 that they will be offering access to Bitcoin funds for their wealthy clients through three funds which enable Bitcoin ownership for investors with an aggressive risk tolerance. BNY Mellon on 11 February 2021 announced that it would begin offering cryptocurrency services to its clients.

On 20 April 2021, Venmo added support to its platform to enable customers to buy, hold and sell cryptocurrencies.

Economic freedom

Cryptocurrency presents major strides in economic growth and freedom to individuals such as in developing nations as well as those under economic sanctions. The crypto market is known to be easier to access than traditional banks due to fewer regulations and allows citizens to bypass governments and regulations to mine for cryptocurrency rewards to utilise, trade, and convert for common goods to survive. In countries with high inflation where fiat currency is no longer available to easily utilise to survive, many have turned to cryptocurrency working through online job boards to bypass strict regulations and achieve economic freedom.

Environmental impact

Mining for proof-of-work cryptocurrencies consumes significant quantities of electricity and has a large associated carbon footprint. In 2017, bitcoin mining was estimated to consume 948MW, equivalent to countries the scale of Angola or Panama, respectively ranked 102nd and 103rd in the world. Proof-of-work blockchains such as Bitcoin, Ethereum, Litecoin, and Monero were estimated to have added 3 to 15 million tonnes of carbon dioxide emissions to the atmosphere in the period from 1 January 2016 to 30 June 2017. By November 2018, Bitcoin was estimated to have an annual energy consumption of 45.8TWh, generating 22.0 to 22.9 million tonnes of carbon dioxide, rivalling nations like Jordan and Sri Lanka.

Critics have also identified a large electronic waste problem in disposing of mining rigs.

Bitcoin is the least energy-efficient cryptocurrency, using 707.6 kilowatt-hours of electricity per transaction. In comparison, the world's second-largest cryptocurrency, Ethereum, uses 62.56 kilowatt-hours of electricity per transaction. These two cryptocurrencies use a significant amount of electricity per transaction in comparison to some of their competitors with a smaller market capitalisation. For instance, Dogecoin has a relatively small energy use, using 0.12 kilowatt-hours of electricity per transaction. Ripple ($XRP) is the world's most energy efficient cryptocurrency, using 0.0079 kilowatt-hours of electricity per transaction. Cardano uses only 0.5479 kilowatt-hours of electricity per transaction.

Technological limitations

There are also purely technical elements to consider. For example, technological advancement in cryptocurrencies such as bitcoin result in high up-front costs to miners in the form of specialized hardware and software. Cryptocurrency transactions are normally irreversible after a number of blocks confirm the transaction. Additionally, cryptocurrency private keys can be permanently lost from local storage due to malware, data loss or the destruction of the physical media. This precludes the cryptocurrency from being spent, resulting in its effective removal from the markets.

Academic studies

In September 2015, the establishment of the peer-reviewed academic journal Ledger (ISSN 2379-5980) was announced. It covers studies of cryptocurrencies and related technologies, and is published by the University of Pittsburgh.

The journal encourages authors to digitally sign a file hash of submitted papers, which will then be timestamped into the bitcoin blockchain. Authors are also asked to include a personal bitcoin address in the first page of their papers.

Aid agencies

A number of aid agencies have started accepting donations in cryptocurrencies, including the American Red Cross, UNICEF, and the UN World Food Program.

Cryptocurrencies make tracking donations easier and have the potential to allow donors to see how their money is used (financial transparency).

Christopher Fabian, principal adviser at UNICEF Innovation said that UNICEF would uphold existing donor protocols, meaning that those making donations online would have to pass rigorous checks before they were allowed to deposit funds to UNICEF.

 

Fraser Institute

From Wikipedia, the free encyclopedia
 
The Fraser Institute
Fraser Institute logo.svg
Formation1974
TypePublic policy think tank, charity
Headquarters1770 Burrard Street
Location
Coordinates49.2700°N 123.1453°WCoordinates: 49.2700°N 123.1453°W
President
Niels Veldhuis
Websitewww.fraserinstitute.org

The Fraser Institute is a Canadian public policy think tank and registered charity. It has been described as politically conservative and libertarian. The institute is headquartered in Vancouver, with offices also located in Calgary, Toronto, and Montreal, and ties to a global network of 80 think tanks through the Economic Freedom Network.

According to the January 2020 Global Go To Think Tank Index Report (Think Tanks and Civil Societies Program, University of Pennsylvania), Fraser is number 14 (of 8,200) in the "Top Think Tanks Worldwide" and number 1 in the "Top Think Tanks in Mexico and Canada".

History

The Fraser Institute was founded in 1974 by Michael Walker, an economist from the University of Western Ontario, and businessman T. Patrick Boyle, then a vice-president of MacMillan Bloedel. It obtained charitable status in Canada on October 22, 1974, and in the United States in 1978. Its stated mission is "to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals." The institute is named after the Fraser River.

Sir Antony Fisher, previously instrumental in setting up the UK's Institute of Economic Affairs, was appointed acting director in 1975, until Walker became executive director in 1977. In its first full year of operation, 1975, the institute reported revenues of $421,389. In 1988, revenues exceed $1 million, and in 2003, $6 million.

Political stance

The Fraser Institute describes itself as "an independent international research and educational organization", and envisions "a free and prosperous world where individuals benefit from greater choice, competitive markets, and personal responsibility".

Forbes has referred to the think tank as libertarian. The New York Times has described the institute as libertarian and conservative. The Calgary Herald called it conservative, Langley Times classified it as right-of-centre libertarian.

Funding

As a registered charity with the Canada Revenue Agency, the institute files annual registered charity information returns. In 2010, the institute reported having $4.5 million CAD in assets and $10.8 million in annual revenue.

The institute depends on contributions from individuals, corporations, and foundations. It does not accept government grants or payments for research, however individual donors may claim tax credits for donations and corporate donors may claim tax deductions.

The institute has received donations of hundreds of thousands of dollars from foundations controlled by Charles and David Koch, with total donations estimated to be approximately $765,000 from 2006 to 2016. It also received US$120,000 from ExxonMobil in the 2003 to 2004 fiscal period. In 2016, it received a $5 million donation from Peter Munk, a Canadian businessman.

In 2012, the Vancouver Observer reported that the Fraser Institute had "received over $4.3 million in the last decade from eight major American foundations including the most powerful players in oil and pharmaceuticals". According to the article, "The Fraser Institute received $1.7 million from 'sources outside Canada' in one year alone, according to the group's 2010 Canada Revenue Agency (CRA) return. Fraser Institute President Niels Veldhuis told The Vancouver Observer that the Fraser Institute does accept foreign funding, but he declined to comment on any specific donors or details about the donations."

Research and publications

The institute self-publishes a variety of reports:

  • Economic Freedom Index: The institute's annual Economic Freedom of the World index ranks the countries of the world according to their degrees of economic freedom. The institute has also published regional and sub-national reports ranking the economic freedom of North America, Latin America, the Arab World, and the Francophonie. These reports are distributed worldwide through the Economic Freedom Network, a global network of 80 think-tanks.
  • Human Freedom Index: Along with the Cato Institute and the Liberales Institut at the Friedrich Naumann Foundation for Freedom, the Fraser Institute publishes annual Human Freedom Index, which presents the state of human freedom in the world based on a broad measure of 76 distinct indicators that encompasses personal, civil, and economic freedom. The index presents a broad measure of human freedom, understood as the absence of coercive constraint. The index covers the following areas: Rule of Law, Security and Safety, Movement, Religion, Association, Assembly, and Civil Society, Expression, Relationships, Size of Government, Legal System and Property Rights, Access to Sound Money, Freedom to Trade Internationally, and Regulation of Credit, Labor, and Business. The Human Freedom Index was created in 2015, covering 152 countries for years 2008, 2010, 2011 and 2012. In January 2016 data for 2013 was added, covering 157 countries.
  • Waiting Your Turn: Wait Times for Health Care in Canada is the institute's annual report on hospital waiting times in Canada, based on a nationwide survey of physicians and health care practitioners. The twentieth annual survey, released December 2010, found that the total waiting time between referral from a general practitioner and delivery of elective treatment by a specialist, averaged across 12 specialties and 10 provinces surveyed, had risen from 16.1 weeks in 2009 to 18.2 weeks in 2010.
  • Survey of Mining Companies: Published annually, the global Survey of Mining Companies ranks the investment climates of mining jurisdictions around the world, based on the opinions of mining industry executives and managers.
  • Global Petroleum Survey: An annual survey of petroleum executives regarding barriers to investment in oil- and gas-producing regions around the world.
  • Canadian Provincial Investment Climate: A series of reports measuring the extent to which Canadian provinces embrace public policies that contribute to, and sustain, positive investment climates.
  • Firearms reports. The Fraser Institute issued a number of articles and statements opposing Canadian gun control laws, including firearms registry.
  • School Report Cards: Every year, the institute publishes a series of School Report Cards ranking the academic performance of schools in British Columbia, Alberta, Ontario, Quebec, and Washington state based on the publicly available results of standardized testing mandated and administered by the provinces. The website www.compareschoolrankings.org allows anyone to compare up to five schools at once, based on a variety of performance indicators.
  • Tax Freedom Day: The institute's annual Tax Freedom Day report calculates the day the average Canadian family has paid off the total tax bill and royalties imposed on them and corporations by all levels of government. In 2016, Tax Freedom Day was June 7 with $45,167 (42.9 per cent of income) having been collected per family. The institute also offers a personal Tax Freedom Day calculator.
  • The institute publishes three magazines: Fraser Forum, a bi-monthly review of public policy in Canada; Perspectives, a French-language review of public policy in Quebec and la Francophonie; and Canadian Student Review, a look at current affairs written for students, by students.
  • In March 2010, the institute released Did Government Stimulus Fuel Economic Growth in Canada? An Analysis of Statistics Canada Data, a report critical of the Harper government's Economic Action Plan, concluding that the stimulus package did not have a material impact on Canada's economic turnaround in the latter half of 2009.

Education programs

The institute periodically hosts free seminars across Canada for students, teachers, and journalists, focusing on key economic concepts and timely issues in public policy. In 2010, the institute hosted eight one-day student seminars, attracting more than 775 participants.

The Fraser Institute also offers an internship program, to which more than 431 individuals applied in 2010.

Other initiatives

Children First

Canada's first privately funded program of its kind, Children First: School Choice Trust, offers tuition assistance grants to help parents in financial need send their children to an independent school of their choice. The program was discontinued in 2012.

Donner Awards

Canada's largest non-profit recognition program, the Donner Canadian Foundation Awards for Excellence in the Delivery of Social Services recognize non-profit social service agencies that, despite budget limitations, excel in terms of management and service delivery. Winners are selected every year in a variety of categories, and share in $60,000 prize money.

School Chain Showcase

A global database of school chains, the multilingual website allows anyone to connect with school chain operators around the world.

Governance

In April 2012, economist Niels Veldhuis was appointed president. The institute is governed by a board of trustees. Current members of the board include Peter Brown (chairman), Mark Mitchell (vice-chairman), and Edward Belzberg (vice-chairman).

Associated people

The institute has attracted some well-known individuals to its ranks, including politicians such as former Reform Party of Canada leader Preston Manning, former Progressive Conservative Ontario premier Mike Harris, former Progressive Conservative Alberta premier Ralph Klein, and former Liberal Newfoundland & Labrador premier Brian Tobin. From 1979 to 1991, the institute's senior economist was Walter Block. Former Alberta Wildrose Party leader, now talk show host Danielle Smith, was associated with the Fraser Institute.

Criticism

According to an article published in CBC News Online, some people allege that Michael Walker helped set up the institute after he received financial backing from forestry giant MacMillan Bloedel, largely to counter British Columbia's NDP government, then led by premier Dave Barrett.

In late 1997, the institute set up a research program emulating the UK's Social Affairs Unit, called the Social Affairs Centre. Its founding director was Patrick Basham. The program's funding came from Rothmans International and Philip Morris. When Rothmans was bought by British American Tobacco (BAT) in 1999, its funding ended, and in 2000 the institute wrote to BAT asking for $50,000 per year, to be split between the Social Affairs Centre and the Centre for Risk and Regulation. The letter highlighted the institute's 1999 publication Passive Smoke: The EPA's Betrayal of Science and Policy, "which highlighted the absence of any scientific evidence for linking cancer with second-hand smoke [and] received widespread media coverage both in Canada and the United States". At this time the CEO of BAT's Canadian subsidiary, Imasco, was also on the Fraser Institute's board of trustees. The Fraser Institute ceased disclosing its sources of corporate funding in the 1980s.

In 1999, the Fraser Institute was criticized by health professionals and scientists for sponsoring two conferences on the tobacco industry entitled Junk Science, Junk Policy? Managing Risk and Regulation and Should Government Butt Out? The Pros and Cons of Tobacco Regulation. Critics charged the institute was associating itself with the tobacco industry's many attempts to discredit authentic scientific work.

Introduction to entropy

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