Introductory description

The main aim of this module is to introduce students to technologies behind distributed ledgers in general and blockchain in particular. Blockchain is a distributed ledger technology that provides proof of ownership and allows for the efficient, secure exchange of ownership. The central topic of the course is understanding blockchain technology and its application to decentralized finance or DeFi. Blockchain is a distributed ledger technology with very special features such as immutability and a high level of security. The advantage of blockchain is that it provides a transactional or verification framework without the need for trust-ensuring central parties (e.g., banks). This reduces transaction costs and lowers the possibility of fraud.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

Introduction to cryptography and ciphers, Hashing
Public/private key cryptography and Digital signatures
Distributed ledgers, Byzantine fault tolerance
Bitcoin blockchain, congestion, mining
Scaling blockchains and Forks
Ethereum blockchain and distributed computing
Smart contracts and DeFi
Oracles and outside blockchain interfaces
Governance of distributed protocols

Learning outcomes

By the end of the module, students should be able to:

• Demonstrate a comprehensive understanding of the problems that cryptography solves and how it is used in blockchain designs.
• Define and explain, intuitively and formally, the fundamental constrains on public distributed ledges/smart contracts and how technology resolves them. Explain whether some limitations are critical for the functioning of large-scale systems.
• Comprehensively understand and explain interactions of blockchains with outside world via oracles.
• Critically evaluate empirical research

Indicative reading list

Paar, C. and Pelzl, J., 2009. Understanding cryptography: a textbook for students and practitioners. Springer Science & Business Media.
Arney, C., 2016. THE MATHEMATICS OF ENCRYPTION: AN ELEMENTARY INTRODUCTION. Mathematics and Computer Education, 50(2), p.138.
Narayanan, A., Bonneau, J., Felten, E., Miller, A. and Goldfeder, S., 2016. Bitcoin and cryptocurrency technologies: a comprehensive introduction. Princeton University Press.
Antonopoulos, A.M. and Wood, G., 2018. Mastering ethereum: building smart contracts and dapps. O'reilly Media.

Research element

Research element will be included during the group project, where the students have to identify the most relevant methodology to perform the task and critically review the existing literature.

Interdisciplinary

Given that the nature of the programme is inherently interdisciplinary, links to other disciplines, such as finance, statistics will arise naturally throughout the module.

International

Distributed ledgers and blockchains are a global phenomenon operating across borders, so many examples and cases will naturally involve global and international markets.

Subject specific skills

Design and implement smart contract protocols that can be deployed on public blockchains.
Assess security of existing smart contracts and oracles
Use a programing tools to analyze distributed ledgers and smart contracts, assess security of protocol designs both critically and using tools

Transferable skills

Demonstrate academic writing skills;