Pages
Individual Business Write-ups
The brief individual write-ups (3 to 5 double-spaced single-sided pages) are to analyze the required readings for two classes of your choice, one during each half of the course. (One due no later than the 10th class and the second no later than the 23rd class.) Write-ups will be due at the start of class on the day the readings are to be discussed. Using the readings for the relevant class, bringing in other (credible) material, if you wish, the focus of each write-up should be analytically judgmental and evaluative of the business considerations (strengths, weaknesses, opportunities, & threats) of that week’s discussion topic. You should be original and write what you think, not a summary of the views presented. The write-ups are worth 30% of your grade.
Group Research Paper
This group project is due at the end of semester, (with possible presentation to the class), and will count for 40% of the grade. Your group will need to submit a written report or whitepaper on the potential for any one original blockchain-related opportunity within the financial sector—a private or public blockchain application in any country, market, or aspect of finance.
The length of the text should be 10–12 pages, single-sided and double-spaced (12 pt. font or less) and include as an exhibit a brief Powerpoint deck (no more than 8 slides) pitching your group’s use case to investors or a senior management team. You should ground your assessment in data as much as possible—and link your analysis to the themes and examples discussed in one or more of our classes. Depending upon the course enrollment, groups will be selected to present to the class during the last week of the semester based upon the material/proposals that best adds value for the entire class. You can work in teams of 3–4 people on this project.
Class Participation
Your active participation in the discussion during class is integral to the design of this course and counts for 30% of your final grade. Prior preparation of the assigned readings is essential background for the lectures and class discussions, particularly as we will build upon the material in our sessions. You should draw on your own experiences and perspectives as much as possible, but you need to do the reading in order to contribute effectively to the flow of the discussion.
| Session # | Topic | key dates |
|---|---|---|
| 1 | Introduction | |
| Act 1: Blockchain and Money Fundamentals | ||
| 2 | Money, Ledgers, and Bitcoin | |
| 3 | Blockchain Basics and Cryptography | |
| 4 | Blockchain Basics and Consensus | |
| 5 | Blockchain Basics and Transactions, UTXO, and Script Code | |
| 6 |
Smart Contracts and DApps Guest Lecturer: Prof. Lawrence Lessig, Harvard Law School |
|
| 7 | Technical Challenges | |
| 8 | Public Policy | |
| 9 | Permissioned Systems | |
| 10 | Financial System Challenges and Opportunities | First business write-up due by this class |
| Act 2: Blockchain and Use Case Economic | ||
| 11 |
Blockchain Economics Guest Lecturer: Rob Gensler, Investor and Financial Analyst |
|
| 12 | Assessing Use Cases | |
| Act 3: Financial Sector Use Cases | ||
| 13 |
Payments, Part 1 Guest Lecturer: Alin Dragos, MIT Digital Currency Initiatve |
|
| 14 | Payments, Part 2 | |
| 15 |
Central Banks and Commercial Banking, Part 1 Guest Lecturer: Robleh Ali, MIT Digital Currency Initiative |
|
| 16 | Central Banks and Commercial Banking, Part 2 | |
| 17 | Secondary Markets and Crypto-Exchanges | |
| 18 | A New Approach to Crypto-Exchanges and Payments | |
| 19 | Primary Markets, ICOs, and Venture Capital, Part 1 | |
| 20 | Primary Markets, ICOs, and Venture Capital, Part 2 | |
| 21 | Post Trade Clearing, Settlement, and Processing | |
| 22 | Trade Finance and Supply Chain | |
| 23 | Digital ID | Second business write-up due by this class |
| 24 | Conclusion | Group Research Paper due by end of the semster |
Course Meeting Times
Lectures: 2 sessions / week, 1.5 hours / session
Prerequisites
MIT students were required to obtain the permission of the instructor.
Synopsis
This course is for students wishing to explore blockchain technology’s potential use—by entrepreneurs & incumbents—to change the world of money and finance.
Kicking off with a review of the technology’s initial application, the cryptocurrency Bitcoin, students will gain an understanding of the commercial, technical and public policy fundamentals of blockchain technology, distributed ledgers and smart contracts in both open sourced and private applications.
The class will then turn to current and potential blockchain applications in the financial sector. This will include reviews of potential use cases for payment systems, central banking, venture capital, secondary market trading, trade finance, commercial banking, post trade possessing and digital ID.
Along the way, we will explore the markets and regulatory landscape for cryptocurrencies, initial coin offerings, other tokens and crypto derivatives.
Requirements and Grading
| Assignment | Percentage |
|---|---|
| Two Individual Write-ups | 30% |
| Group Research Paper | 40% |
| Class Participation | 30% |
For more information, see the Assignments section.
Readings and Study Questions
General advice: Please read blockchain news websites, such as CoinDesk, CCN.com, and Coin Telegraph, every week. Other popular websites are listed here: “Best on the Block: The World’s Best Blockchain Websites.” Also, please read blockchain, as well as, financial sector-related articles as they appear in The Wall Street Journal, the Financial Times, and The New York Times. As the world of blockchain technology and crypto finance are rapidly changing, specific (short) articles might be added to the reading when relevant.
