Blockchain technology has emerged as one of the most transformative innovations in modern finance, reshaping how value is stored, transferred, and secured. This course, Blockchain Finance, offers a structured and in-depth exploration of blockchain fundamentals, cryptocurrency mechanisms, and their broader financial implications. Designed for graduate students, it provides both theoretical grounding and practical insights into decentralized systems, with a strong focus on Bitcoin, alternative cryptocurrencies, and the evolving regulatory landscape.
Whether you're new to digital currencies or looking to deepen your technical understanding, this course delivers essential knowledge for navigating the future of finance.
👉 Discover how blockchain is revolutionizing global financial systems today.
Course Structure and Learning Objectives
Course Code: 125100M05042Z
Credit Hours: 32
Credits: 2.00
Course Type: Professional Foundation Course
Instructor: Xianhua Wei, Professor at the School of Economics and Management, specializing in risk management, financial regulation, investment strategies, and payment clearing systems.
Teaching Goals
This course aims to equip students with:
- A solid foundation in blockchain basics, including cryptographic principles and decentralized consensus.
- An understanding of cryptocurrency mechanisms, particularly Bitcoin’s architecture and operation.
- The ability to analyze real-world blockchain projects and assess their technical and economic viability.
No prerequisite courses are required, making it accessible to students from diverse academic backgrounds who are eager to explore the intersection of technology and finance.
Core Curriculum Breakdown
The syllabus is divided into eleven comprehensive modules, each addressing a critical aspect of blockchain technology and its financial applications.
Chapter 1: Cryptography and Cryptocurrencies – 1.5 Hours
This foundational chapter introduces key cryptographic tools that underpin blockchain security:
- Hash functions and hash pointers
- Digital signatures
- Public-key cryptography
Students will also gain an overview of the course structure and objectives, setting the stage for deeper technical discussions.
Chapter 2: Decentralization in Bitcoin – 3 Hours
Understanding decentralization is crucial to grasping blockchain’s innovation:
- Centralized vs. decentralized systems
- Distributed consensus models
- Identity-less consensus through blockchain
- Incentive structures and Proof of Work (PoW)
This section explains how Bitcoin achieves trust without central authorities—a cornerstone concept in blockchain finance.
Chapter 3: How Bitcoin Works – 3 Hours
A deep dive into Bitcoin’s operational mechanics:
- Transaction structure and verification
- Bitcoin scripting language and its use cases
- Network propagation and node communication
- Limitations and optimization techniques
Students learn how transactions are constructed, validated, and secured across the network.
Chapter 4: Bitcoin Storage and Payment Systems – 3 Hours
Secure asset management is vital in digital finance:
- Local storage solutions
- Hot vs. cold wallets
- Key splitting and sharing protocols
- Online wallets, exchanges, and payment services
- Transaction fees and currency exchange markets
This module emphasizes best practices for securing digital assets and managing everyday transactions.
Chapter 5: Bitcoin Mining – 3 Hours
Mining is the engine behind Bitcoin’s security:
- Miner responsibilities and block creation
- Hardware evolution: from CPUs to ASICs
- Energy consumption and environmental impact
- Mining pools and collective hashing power
- Mining incentives and strategic behavior
Discussions include sustainability challenges and the economic rationale behind mining rewards.
Chapter 6: Anonymity in Bitcoin – 3 Hours
While often perceived as anonymous, Bitcoin offers pseudonymity:
- Fundamentals of anonymity in digital systems
- Techniques for de-anonymizing transactions
- Coin mixing and decentralized mixing protocols
- Privacy-enhancing technologies like Zerocoin and Zerocash
This chapter explores the balance between transparency and privacy in public ledgers.
Chapter 7: Community, Governance, and Regulation – 3 Hours
Bitcoin operates within a complex socio-political ecosystem:
- Consensus dynamics among developers and users
- Role of Bitcoin Core software
- Stakeholder influence: miners, developers, investors
- Historical origins of Bitcoin
- Government scrutiny, anti-money laundering (AML) policies, and regulatory frameworks
Students examine how decentralized networks navigate legal oversight and institutional adoption.
Chapter 8: Alternative Mining Algorithms – 3 Hours
Not all blockchains rely on traditional PoW:
- Requirements for secure mining algorithms
- ASIC-resistant puzzles
- Useful Proof of Work (e.g., computational tasks with real-world value)
- Non-outsourcable puzzle designs
- Proof of Stake (PoS) and virtual mining concepts
This section compares different consensus approaches and their trade-offs in security, fairness, and efficiency.
Chapter 9: Bitcoin as a Platform – 3 Hours
Beyond currency, Bitcoin supports innovative applications:
- Immutable append-only ledger functionality
- Smart property and tokenized assets
- Secure multi-party gambling systems
- Public randomness generation
- Prediction markets and integration with real-world data
Students explore how Bitcoin’s design enables trustless automation in various domains.
Chapter 10: Altcoins and the Cryptocurrency Ecosystem – 3 Hours
The rise of alternative cryptocurrencies (altcoins) has expanded blockchain’s reach:
- Origins and motivations behind altcoins
- Detailed analysis of prominent examples
- Interoperability between Bitcoin and altcoins
- Failed projects and merged mining strategies
- Cross-chain atomic swaps
- Sidechains—Bitcoin-based platforms for innovation
- Introduction to Ethereum and smart contracts
This chapter highlights the diversity and competition within the crypto space.
Chapter 11: Decentralized Institutions – 1.5 Hours
Looking ahead, blockchain enables new forms of governance:
- Pathways toward blockchain integration in institutions
- Templates for decentralized organizations
- Use cases where decentralization adds value
- Challenges in cross-chain interoperability
The course concludes by envisioning blockchain as a tool for building transparent, resilient, and user-controlled financial systems.
Frequently Asked Questions (FAQ)
Q: Is prior knowledge of programming or cryptography required?
A: No. While some technical concepts are discussed, the course is designed to be accessible to non-technical graduate students. Core ideas are explained clearly without assuming advanced background knowledge.
Q: Can this course help me pursue a career in fintech or blockchain development?
A: Absolutely. The curriculum covers industry-relevant topics such as smart contracts, mining economics, wallet security, and regulation—skills highly valued in fintech, crypto startups, and financial institutions adopting blockchain solutions.
👉 Explore high-demand careers in blockchain and digital finance now.
Q: How does this course address environmental concerns around cryptocurrency?
A: Chapter 5 includes a dedicated discussion on energy consumption in mining, comparing different consensus models (like PoW vs. PoS), and evaluating sustainable alternatives.
Q: Are there hands-on projects or coding assignments?
A: The focus is conceptual and analytical. While there are no mandatory coding tasks, students are encouraged to explore blockchain explorers, transaction scripts, and wallet tools independently.
Q: What makes this course different from online crypto tutorials?
A: Unlike superficial overviews, this university-level course offers rigorous academic training grounded in economics, computer science, and policy—led by an experienced researcher in financial systems.
Key Topics & SEO Keywords
The core themes explored throughout the course align with high-search-volume topics in digital finance:
- Blockchain finance
- Bitcoin operation
- Cryptocurrency mining
- Decentralized systems
- Smart contracts
- Digital wallet security
- Proof of Work vs Proof of Stake
- Cryptographic security
These keywords are naturally integrated across sections to enhance discoverability while maintaining educational integrity.
👉 Learn how blockchain is transforming investment strategies and financial infrastructure.
Recommended Reading
To supplement lectures, students are encouraged to read:
Blockchain: Redefining the Future of Finance and Economic Landscape by Jian Zhang (2016, China Machine Press)
This book provides additional context on blockchain’s macroeconomic impact—an excellent companion for those interested in long-term industry trends.
By combining technical depth with real-world relevance, Blockchain Finance prepares students to understand, evaluate, and contribute to the next generation of financial innovation.