FIE464 Blockchain, Cryptocurrencies, and Decentralized Finance (E)

• Topics

  This course provides a comprehensive introduction to blockchain-based technologies and their economic, financial, and societal implications. It combines technical foundations - such as cryptographic primitives, consensus mechanisms, and smart contracts - with economic analysis of incentives, markets, and institutions. The course examines major blockchain systems including Bitcoin and Ethereum, as well as the broader ecosystem of altcoins, decentralized finance, and Web3 applications.

  The course will cover following topics:

  Blockchain

  • History
  • Cryptography primitives
  • Blockchain technology

  Bitcoin

  • Primitives and decentralization
  • Mining and incentives
  • Security
  • Anonymity
  • How/where to buy and trade Bitcoins
  • Bitcoins as a payment vehicle
  • Bitcoins as an investment asset
  • Environmental impact
  • Risks
  • Community and politics
  • Regulation
  • Notable scandals
  • The entry of traditional finance

  Etherium

  • Primitives
  • Smart contracts
  • Altcoins and Memecoins
  • Stable coins
  • Non-fungible tokens (NFTs)
  • Decentralized Autonomous Organizations (DAOs)

  Decentralized Finance (DeFi) and web3

  • Comparison to traditional finance
  • Centralized versus decentralized exchanges
  • Business applications
  • Regulation
  • Risks
  • Ethical considerations

  The course content of FIE464 overlaps with that of BAN435; however, there are several differences between the two courses. First, FIE464 has a broader scope, as it is a 7.5 ECTS course. Second, BAN435 places stronger emphasis on the underlying blockchain technology and on applications of this technology in various business contexts. In contrast, FIE464 aims to provide a holistic perspective on blockchain in particular, and on decentralized finance (DeFi) more broadly, with a specific focus on the implications for the current financial system.

• Learning outcome

  Upon successful completion of the course, the students will have attained the following:

  Knowledge

  • Understand the technical foundations of blockchain-based technologies and its ecosystem
  • Understand the economic and financial implications of blockchain-based technologies and its ecosystem
  • Understand regulatory, ethical, and societal challenges associated with blockchain technologies, including compliance, anonymity, and financial stability.
  • Know the historical development, major events, and notable scandals that shaped the evolution of the crypto ecosystem.

  Skills

  • Apply economic and financial reasoning to assess blockchain-based business models and decentralized applications
  • Interpret technical concepts in blockchain and cryptocurrencies and communicate them
  • Evaluate investment, trading, and payment use cases for cryptocurrencies
  • Identify and assess regulatory, ethical, and environmental risks associated with blockchain technologies.

  General competence

  • Critically interpret real-world case studies, scandals, and the interaction between decentralized systems and traditional finance.
  • Critically analyze emerging developments in DeFi, Web3, and digital currencies.

• Teaching

  The teaching consist of two types of lectures.

  Type 1 - classical lecture: the instructor presents the foundational ideas for individual topics.

  Type 2 - interactive lecture: students will present and discuss relevant academic papers and newspaper articles. Students have a responsibility to come well-prepared and participate actively in classroom discussions. I encourage voluntary participation but may cold-call on any student. I do not allow the use of electronic devices during these lectures because I require active participation. Bring notes and printouts for note taking.

• Recommended prerequisites

  None. The course will use code to exemplify relevant technology as well as trading strategies. Students are expected to conceptually understand code, but do not need to implement any throughout the course.

• Required prerequisites

  None

• Credit reduction due to overlap

  BAN435 Blockchain Technology and Applications (2.5 credit). Students that take BAN435 cannot enroll in FIE464.

• Compulsory Activity

  Type 2 - interactive lectures focus on the presentation and discussion of academic papers and newspaper articles. It is mandatory to participate in these lectures because participation is a major part of the course’s grade. A student missing more than two of those lectures without prior approval will fail the course.

• Assessment

  Class participation (30%)

  For Type 2 - interactive lectures, students must read academic papers and newspaper articles which will be presented and discussed in the classroom. Following aspects will be graded: (1) preparedness and (2) contribution to class discussion (e.g. willingness to engage in discussed ideas, quality of insight, and logical reasoning). Because of its nature, this part of the grade cannot be retaken or repealed.

  4-hours digital school exam (70%)

  The final exam will be digital and administered at school. The exam has two parts:

  • Multiple choice questions, and
  • Writing an essay.

  The exam will be written in English and has to be answered in English.

• Grading Scale

  A-F

• Literature

  The lecturer will provide a self-contained set of slides. In addition, there are academic and newspaper articles which will be provided by the lecturer.

  The slides are built using following four books. Students are not required to buy or read them.

  • Blockchain, Crypto and DeFi: Bridging Finance and Technology, 1st Edition, ISBN-13: ‎ 978-1394275892
  • Bitcoin and Cryptocurrency Technologies: A Comprehensive Introduction, ISBN-13: ‎ 978-0691171692
  • DeFi and the Future of Finance, 1st Edition, ISBN-13: ‎ 978-1119836018
  • Crypto: The Insights You Need from Harvard Business Review (HBR Insights Series), ISBN-13: ‎ 978-1647824495