Blockchain Business Models

Some basic knowledge of encryption techniques is essential for understanding blockchain technology. This module focuses on digital signature algorithms. When a transaction is placed on a blockchain, it is signed by the owner. With the owner’s public information and the signature, we can quickly determine if the signer is really the owner.

Bitcoin was the first cryptocurrency and the first large scale use of blockchain technology. This module explores how the bitcoin blockchain works. We detail the mechanics of transactions and there is an introduction to the consensus mechanism called Proof of Work. This provides a foundation to look at other blockchain implementations. We highlight the difference between bitcoin, ethereum and other technologies like Hyperledger.

Armed with a deep understanding of blockchain mechanics, students can now assess the applicability of this technology across diverse domains. Our focus spans current applications as well as those in development but not yet publicly disclosed.

Blockchain technology encompasses a variety of implementations rather than a singular approach, each chosen based on its suitability for specific applications. This module delves into the study of Proof of Work, Proof of Stake, and other relevant mechanisms. Consensus algorithms remain a dynamic focus of research within the blockchain field.

Numerous new ventures are adopting blockchain technology. Assessing their viability, whether for investment or employment, requires a structured approach. This module presents a checklist tailored for evaluating cryptoventures. Key questions include: a) What specific problem does the venture aim to solve? b) Is this problem significant and relevant? c) Is blockchain technology the optimal solution for addressing this problem? d) Which type of blockchain technology is most suitable for solving the identified problem? These questions guide a thorough evaluation, ensuring informed decisions regarding investment or career opportunities in blockchain ventures.

As blockchain technology emerges, regulators must familiarize themselves with its intricacies while formulating appropriate guidelines. This module examines prominent US regulators like the SEC and CFTC, along with the foundational legal principles shaping their regulatory frameworks. Additionally, it explores the regulatory concept of the "right touch": maintaining a balance where stringent regulations do not stifle innovation, yet lax regulations do not invite rampant fraud. The module concludes with a broad discussion on the future of fintech, particularly decentralized finance (DeFi), highlighting its potential trajectory and implications for regulatory frameworks.