BLOCKCHAIN TECHNOLOGY AND FINTECH

Nicola Borri, Fiorenzo Manganiello

Obiettivi formativi

The aim of this class is to provide a practical understanding of the digital transformation in the financial industry. The course will cover topics such as the blockchain technology, fintech and AI with finance and business applications.

Prerequisiti

No

Risultati di apprendimento attesi

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 sector and will understand how technology will build better financial services firms. Additional in-class experiential learning will include interaction with startups, entrepreneurs and industry executives to allow you to experiment with this technology.

Contenuti Del Corso

The technology Bitcoin Other cryptocurrencies and tokens The finance of cryptocurrency NFTs Bitcoin mining and scale up technologies Staking and lending Venture capital investing

Testi Di Riferimento

For background information: The Basics of Bitcoins and Blockchains, A. Lewis Papers distributed in class

Metodologie Didattiche

The students will have to discuss a team-based project (teams of 5 students each). The project will be based on the development of a new layer one technology or an application of blockchain technology in the financial markets.

Modalità di verifica dell'apprendimento

For attending students, discussion of team-based project. For attending students, class participation is fundamental. For non-attending students, written exam based on the reading list of the course. This course has a pass/fail grading.

Criteri per l’assegnazione dell’elaborato finale

Academic performance and quality of the proposal

Settimana 1

The technology Blockchain Proof-of-work Hash Bitcoin

Settimana 2

Other cryptocurrencies and tokens Ethereum Proof-of-stake Solana Meme coins

Settimana 3

A finance perspective on cryptocurrencies Liu and Tsyvinski (RFS) Liu, Tsyvinski and Wu (JF)

Settimana 4

Arbitrage and trading in cryptocurrency markets Makarov and Schoar (JFE) Borri and Shakhnov (RAPS)

Settimana 5

NFT and digital property rights Borri, Liu, Tsyvinski and Wu

Settimana 6

Fintech and business cases

Settimana 7

AI in finance

Settimana 8

Bitcoin mining and scale up technologies Overview of the main metrics: hash price, hardware type, energy efficiency, profitability metrics Business Models: Hosting vs Self Mining. Unit economics and financial modeling (IRR, Payback Period and Sensitivity Analysis). Lightning Network, payment channels and decentralized node infrastructure.

Settimana 9

Staking and Lending Staking as an alternative asset class The risk-free rate, lockups, staking ratio and liquid staking ROA and financial modeling Building Fixed income strategies

Settimana 10

Venture capital investing Blockchain investment landscape Token vs Equity investment strategies Major investment trends and key ecosystem players

Settimana 11

In-class presentations

Settimana 12

In-class presentations