Bitcoin: Back to the Future

Transcription

1 Bitcoin: Back to the Future

2 About the course: This course is a general introduction to the emerging world of distributed ledgers and internet-based value exchange systems. We focus specifically on bitcoin as a leading example of the broader set of cryptocurrencies; and we focus on the operation of basic money transfers though we also explore a broader set of non-financial applications. The course is intended to strike a balance between discussing the philosophical underpinnings, reaching technological depth, probing the broader practical applications, and understanding the current state of development and regulation of such systems. Who should attend this course: This course is intended for professionals in the emerging digital payments and technology-enabled financial services space. They may not feel like bitcoin is directly relevant to their current work, but have a sense that it might be in the future. We invite people who are either instinctively enthusiastic or skeptical about all things bitcoin to find out more and join in our discussions. What are the intended outcomes: Students coming out of the course should have a basic understanding of how bitcoin works, how it challenges current financial systems and regulatory practices. Students ought to feel like they have sufficient insights and the tools to be able to develop their own views on the future of cryptocurrencies and distributed ledger technologies, and to join conversations with other professionals on the potential impact on current systems and practices.

3 Course syllabus Week 1: Philosophy Course overview Precedents In code we trust The experience The bitcoin platform: protocol, network and currency Course objectives, outline, warnings & disclaimers Cash Stone money of the Island of Yap Tally sticks Old masters art Napster & P2P music Double-spend problem Byzantine generals problem Bitcoin protocol governance and the Bitcoin Foundation Bitcoin protocol as an additional layer on the internet protocol stack Bitcoin as trustless transactions A run through the Coinbase wallet service The user interface & the experience Week 2: Mechanics Blockchain: The common record Mining: Creating consensus Peer-to-peer networking Validating transactions Transactions grouped into blocks, grouped into a block chain Hash functions & digital signatures Public key, private key & bitcoin address Transaction validation using the blockchain Mining as competitive book-keeping Proof of work & finding the nonce Assembly of blocks Forking the blockchain Miners cost-benefit P2P communications protocol Bitcoin clients & the bitcoin core Light wallets Validating a transaction Merkle hash trees & the merkle root Coinbase transaction

4 Week 3: Ecosystem The actors BTC, the currency Beyond Bitcoin Blockchain applications Bitcoin exchanges Bitcoin wallets Hosted wallets, cold wallets, paper wallets, hardware wallets Bitcoin ATMs Bitcoin merchant processors Historical BTC price evolution Volatility Speculative bubbles BTC supply BTC as deflationary currency Scripting & data storage on transactions Smart contracts Colored coins Altcoins: Ripple & Ethereum InterLedger protocol Permissioned & private distributed ledgers International remittances Physical asset registries Clearing & settling securities Trade finance Microtransactions Self-sovereign identity models Week 4: Evaluation How safe? How private? How future proof? How economically significant? Regulation Hacks, illegal activities & accidents on bitcoin Identity theft 51% (mining) attack Sybil & denial of service attacks Scalability: block and blockchain size Segregated Witness Payment channels & the Lightning Network Mining efficiency & costs Proof of stake & voting as alternatives to proof of work Soft and hard forks Stats on BTC market cap & transactionality Transaction speed & reversibility Transaction costs: end-user & mining costs Demand drivers for BTC BTC & the three functions of money Optimal monetary policy: Rules vs. discretion Risks that may give rise to regulatory action Policy options & levers Bitcoin derivative markets & bitcoin exchange-traded funds Spectrum of country regulatory approaches The future of digital fiat currencies

5 Concluding thoughts: Google Trends: bitcoin, ripple & ethereum Fintech investments & initial coin offerings The incumbents are stepping in Top 5 concepts from the course Top 5 remaining questions The mystery of Satoshi Nakamoto Course mechanics: The cost of this course is US$250 Per person This short course is delivered online 4 Weeks to complete 4 6 Hours per week This course is certified & part of the Chartered Practitioner Journey To enroll on this course visit Course instructors: Ignacio Mas Founder & Executive Director at Digital Frontiers Institute. Ignacio Mas is a Senior Fellow at CEME at the Fletcher School. He has been deputy director at the Bill & Melinda Gates Foundation, has held senior telecoms jobs at Vodafone and Intel, and has been adjunct professor at the Business School at the University of Chicago. He holds a SB degree from MIT and a PhD from Harvard. During the course you will hear from other DFI faculty and industry experts who will join us as guests in our faculty lounge. info@digitalfrontiersinstitute.org