Obiettivi formativi
The aim of this seminar is to provide a practical understanding of the digital transformation in the financial industry related to the blockchain. The students will work on case studies and white papers to acquire the fundamental concepts of cryptocurrencies, will identify opportunities for disruption in the financial services and investing sectors and will understand how technology will build better financial services firms. The course will leverage the expertise of the Lian Group (https://liangroup.io/), a leading investor in the fintech sector, to include additional in-class experiential learning, such as interaction with start-ups, entrepreneurs and industry executives.
Prerequisiti
The prerequisites set by the Graduate School.
Risultati di apprendimento attesi
The student will have to discuss a team-based project. The project will be based on the development of a new layer one technology or an application of the blockchain technology in the financial markets.
Contenuti Del Corso
The aim of this seminar is to provide a practical understanding of the digital transformation in the financial industry related to the blockchain.
A detailed syllabus will be presented to the students in the first class.
Testi Di Riferimento
Handouts from various sources and business cases. In addition, reading of Lewis, A. “The Basics of Bitcoins and Blockchains: An Introduction to Cryptocurrencies and the Technology that Powers Them” is recommended.
Metodologie Didattiche
The course is based on a mix of in-class lectures, in-class group assignments and activities, meetings with professionals
Modalità di verifica dell'apprendimento
The student will have to discuss a team-based project. The project will be based on the development of a new layer one technology or an application of the blockchain technology in the financial markets.
The project will be discussed/submitted in the last week of classes and covers 100 percent of the valuation (pass/fail).
Criteri per l’assegnazione dell’elaborato finale
The criteria are set by the Graduate School.
Settimana 1
A primer on cryptocurrency and blockchain technology
Reference: Harvey et al. (2022)
Settimana 2
Trading and arbitrage in cryptocurrency
Reference:
- Makarov and Schoar (2020)
- Borri and Shakhnov (2023)
- Borri and Shakhnov (2022)
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Settimana 3
Blockchain analysis of the Bitcoin Market
Reference:
Makarov and Schoar (2022)
Settimana 4
The economics of non-fungible tokens
Reference: Borri et al. (2023)
Settimana 5
Bitcoin mining and scale up technologies
o Overview of the main metrics: hash price, hardware type, energy efficiency, profitability metrics
o Business models: Hosting vs Self mining
o Unit economics and financial modeling (IRR, Payback Period and Sensitivity Analysis)
o Lightning Network, payment channels and decentralized node infrastructure
References: handouts
Settimana 6
Staking and lending
o Staking as an alternative asset class
o The risk-free rate, lockups, staking ratio and liquid staking
o ROA and financial modeling
o Building fixed income strategies
Reference: handouts
Settimana 7
Venture capital investing
o Blockchain investment landscape
o Token vs Equity investment strategies
o Major investment trends and key ecosystem players
References: handouts