FNAN 472 Master Syllabus

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FNAN 472: Fintech and Blockchain in Finance Master Syllabus


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Course Description and Objectives

As the underlying technology that enables decentralized peer-to-peer currencies such as Bitcoin, blockchain has been touted as a revolutionary innovation to fundamentally change many aspects of business. How does blockchain actually work? How could it be applied to different business scenarios? Is blockchain truly the "next big thing" or just another hyped up buzz word? In this course, we'll conduct an objective investigation into the current status of blockchain development, and have an open dialog around its future promises. 

We'll start from explaining the functioning of Bitcoin in detail to illustrate the core concepts behind blockchain: hashing, immutable ledger, Merkle tree, distributed consensus; we'll introduce concepts such as smart contract, forking, proof-of-work/stake, token in the context of alternative cryptocurrencies; we may supplement our discussion with business applications from guest speakers; and importantly, we'll take the design of Bitcoin operations as an venue to study various finance/economics concepts/tools in the real world. 


Textbook

A highly recommended introductory reference book is freely available here: A. Narayanan, J. Bonneau, E. Felten, A. Miller, S. Goldfeder. Bitcoin and Cryptocurrency Technologies: A Comprehensive Introduction , Princeton University Press, 2016.  

Recommended news letters/podcasts to subscribe to: 
Coindesk "Late Confirmation" blockchain updates podcast  
EpiCenter weekly blockchain podcast  

Lecture slides and extra materials will be posted on the web site from time to time. There is no formal textbook for the class. 


Exams and Grading

Grading will be based on a set of exams, class participation, and a final (team) project (including a written report along with multiple presentations). 

  • Exams: 30% 
  • Team project: 50% 
  • Class participation: 20%

The final grade will be based on all the points earned for the course.  Suggestions on final project topics (to be constantly added): A variety of Hash functions; Merkle Patricia Trie; DAG; Digital Signatures Schemes (ECDSA, BLS, etc.);


Tentative Class Schedule (subject to change as we progress)

Topic Reading Materials
Logistics Slides 
Hash functions used in practice
Bitcoin 101: cryptography basics Lloyd's of London Makes Quiet Entrance Into Crypto Insurance Market
Bitcoin 101: building your first blockchain Slides
Introduction to game theory Slides: Introduction to game theory 
Nash equilibrium exercise 
Nash equilibrium exercise solution
Bitcoin 101: consensus and distributed ledger  Slides
The game of mining  Blockchain Folk Theorem 
ICO  Decentralized Mining in Centralized Pools Slides
Slides2   
The Miner's Dilemma
Digital Tokens and Platform Building Slides
Tokenomics: Dynamic Adoption and Valuation 
Initial Coin Offerings: Financing Growth with Cryptocurrency Sales 
On the immaturity of tokenized value capture mechanisms (Section 5) 
Exam  
More on distributed consensus Slides
RAFT: RAFT 
Filecoin: Filecoin 
Bitcoin Script language; smart contract; Ethereum 101 Slides
A gentle introduction to Ethereum 
Turing completeness
Loops in programming
Smart contract for information aggregation
Exam  
Overview of keywords forward  Coindesk Q2 blockchain report 
cryptoexchanges  The Willy Report
Wash trading
Crypto Coin Tether Defies Logic on Kraken�s Market, Raising Red Flags 
Each Tether is Backed By USD, Unofficial Audit Claims 
Tether, the troubled cryptocurrency hit by a $31 million hack, has split with its auditors 
Is Bitcoin Really Un-Tethered? (to add link) 
Exam  
Anonymous cryptocurrencies  Crypto e-cash and ZK proofs and Part 2
Zcash and Zk-SNARKs 
Monero (Cryptonote)
Stablecoin  
Blockchain Scaling  Bitcoin Lightning Network 
Casper (proof-of-stake) 
Nothing at stake? 
Ouroboros (proof-of-stake) 
EOS (delegated proof-of-stake); EOS white paper 
 Plasma and Video and LearnPlasma 
State Channel
Sharding
Exam  
Final project presentation   

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