Blockchain technology has emerged as a transformative force in the financial world, reshaping how value is stored, transferred, and managed. This course, Blockchain Finance, offers a structured and in-depth exploration of the foundational principles, technical mechanisms, and real-world applications of blockchain systems—particularly within the realm of digital currencies and decentralized finance.
Designed as a professional普及 course (professional popularization course), it equips graduate students with essential knowledge to understand, analyze, and engage with blockchain-based projects confidently. With 32 course hours and 2.0 credits, the program balances theoretical depth with practical relevance under the guidance of Professor Xianhua Wei from the School of Economics and Management.
Core Learning Objectives
The primary goal of this course is to build a solid foundation in blockchain fundamentals. Students will:
- Gain familiarity with core cryptographic tools such as hash functions, hash pointers, digital signatures, and public-key cryptography.
- Understand how decentralization is achieved through distributed consensus mechanisms.
- Explore the operational framework of Bitcoin, including transaction processing, scripting, network propagation, and storage solutions.
- Analyze mining processes, energy implications, and alternative consensus algorithms like Proof-of-Stake.
- Examine privacy features, anonymity limitations, and techniques like coin mixing and zero-knowledge proofs.
- Evaluate regulatory challenges, anti-money laundering (AML) considerations, and the role of governance in blockchain communities.
No prerequisite courses are required, making this an accessible entry point for students from diverse academic backgrounds who are eager to enter the fast-evolving field of blockchain finance.
👉 Discover how blockchain is reshaping global finance—start your learning journey today.
Course Structure and Key Topics
Chapter 1: Cryptography and Cryptocurrency Fundamentals (1.5 Hours)
This introductory chapter lays the groundwork by explaining core cryptographic concepts essential to blockchain security. Topics include:
- Overview of course content
- Hash functions and hash pointers
- Digital signatures and public-key infrastructure
These elements form the backbone of trustless systems, enabling secure and verifiable transactions without intermediaries.
Chapter 2: Decentralization in Bitcoin (3 Hours)
Students explore the philosophical and technical shift from centralized to decentralized systems:
- Centralized vs. decentralized architectures
- Distributed consensus models
- Identity-less consensus via blockchain
- Incentive design and Proof-of-Work (PoW)
This section emphasizes how Bitcoin achieves consensus without relying on trusted parties.
Chapter 3 & 4: Bitcoin’s Operational Mechanics (6 Hours Total)
These two chapters delve into the inner workings of the Bitcoin network:
- Transaction structure and UTXO model
- Bitcoin scripting language and its applications
- Peer-to-peer network dynamics
- Wallet types: hot, cold, online, and exchange-based
- Payment services, transaction fees, and currency exchange markets
Understanding these components is crucial for analyzing real-world usage patterns and system limitations.
Chapter 5: Bitcoin Mining Ecosystem (3 Hours)
Mining is not just about creating new coins—it's a critical security mechanism:
- Miner responsibilities and block validation
- Hardware evolution: CPUs → GPUs → ASICs
- Environmental impact and energy efficiency debates
- Mining pools and reward distribution strategies
This module also touches on sustainability concerns, encouraging students to think critically about ecological trade-offs.
Chapter 6: Privacy and Anonymity (3 Hours)
While often perceived as anonymous, Bitcoin offers pseudonymity at best:
- Basics of identity tracing on public ledgers
- De-anonymization techniques using transaction graph analysis
- Privacy-enhancing tools: coin mixers, decentralized mixing protocols
- Introduction to Zerocoin and Zerocash protocols using zero-knowledge proofs
These discussions highlight the ongoing tension between transparency and privacy in open financial systems.
Chapter 7: Governance, Regulation, and Community Dynamics (3 Hours)
This chapter addresses the human and institutional dimensions:
- Consensus decision-making in open-source communities
- Role of core developers and wallet software maintainers
- Stakeholder power structures
- Government surveillance, AML policies, and global regulatory trends
Students learn that technological innovation must coexist with legal and social frameworks.
👉 Learn how regulatory clarity is shaping the future of digital assets.
Chapter 8: Alternative Mining Algorithms (3 Hours)
Beyond Bitcoin’s PoW model:
- Design requirements for secure consensus algorithms
- ASIC-resistant puzzles
- Verifiable delay functions and non-outsourceable puzzles
- Introduction to Proof-of-Stake (PoS) and virtual mining
This prepares students for understanding next-generation blockchains that prioritize scalability and sustainability.
Chapter 9: Bitcoin as a Platform (3 Hours)
Bitcoin isn't just money—it can support broader applications:
- Immutable append-only ledger use cases
- Smart property concepts
- Secure multi-party gambling systems
- Public randomness generation
- Prediction markets linked to real-world data
These explorations reveal Bitcoin’s potential beyond simple payments.
Chapter 10: Altcoins and the Cryptocurrency Ecosystem (3 Hours)
The rise of alternative cryptocurrencies (altcoins):
- Motivations behind altcoin creation
- Case studies of major altcoins
- Interoperability challenges: cross-chain swaps
- Sidechains enabling innovation on top of Bitcoin
- Introduction to Ethereum and smart contract platforms
This broadens perspective beyond Bitcoin to the wider crypto landscape.
Chapter 11: Decentralized Institutions and Future Directions (1.5 Hours)
Final reflections on blockchain as a tool for institutional redesign:
- Pathways to blockchain integration in traditional systems
- Templates for decentralized organizations
- When decentralization adds value—and when it doesn’t
- Advanced cross-chain interoperability concepts
The course concludes by positioning blockchain as a catalyst for reimagining trust, coordination, and economic organization.
Recommended Reading
To deepen understanding, students are encouraged to consult:
Blockchain: Redefining the Future of Finance and Economic Landscape by Jian Zhang (China Machine Press, 2016)
This foundational text complements classroom learning with broader industry insights.
About the Instructor
Professor Xianhua Wei is a doctoral supervisor at the School of Economics and Management. His research spans:
- Financial risk management
- Investment portfolio strategies
- Financial product design and risk assessment
- Payment clearing systems and liquidity modeling
- Regulatory mechanisms and financial transmission channels
His expertise ensures that the course maintains rigorous academic standards while addressing practical financial applications.
👉 Explore cutting-edge research at the intersection of finance and blockchain technology.
Frequently Asked Questions (FAQ)
Q: Is prior programming experience required for this course?
A: No. While technical concepts are covered, the course focuses on conceptual understanding rather than coding skills.
Q: Can undergraduates enroll in this course?
A: It is designed for graduate students, but advanced undergraduates with strong interest may benefit with instructor approval.
Q: How does this course address real-world crypto market volatility?
A: Market dynamics are discussed in context of miner incentives, transaction fees, and investor behavior—but price speculation is not the focus.
Q: Are there hands-on projects or only lectures?
A: The current structure is lecture-based with analytical exercises; no mandatory coding or deployment projects.
Q: Does the course cover NFTs or DeFi protocols?
A: Indirectly—through discussions on Ethereum and smart contracts—but these topics are not central to the curriculum.
Q: Is this course biased toward pro-crypto perspectives?
A: No. The course presents balanced views, including technical flaws, environmental costs, regulatory risks, and economic criticisms.
Keywords Mined and Integrated
Core keywords naturally integrated throughout the article include:
blockchain finance, Bitcoin mining, decentralized institutions, cryptocurrency ecosystem, distributed consensus, smart contracts, Proof-of-Stake, digital currency mechanisms
These terms align with high-intent search queries while maintaining organic readability.
By combining technical rigor with real-world context, Blockchain Finance prepares students to navigate one of the most dynamic frontiers in modern economics—where code meets capital, and innovation meets regulation.