Driven by the remarkable success of cryptocurrencies such as Bitcoin and Ethereum, blockchain technology has been hyped as a disruptive force that could challenge traditional financial structures and business models. Potential applications of blockchain technology have been explored far beyond cryptocurrencies and the financial sector. For instance, blockchain applications can improve the sustainability of supply chains, increase the efficiency of public administration, and back decentralized digital identities. On the other hand, thus far only few blockchain-based applications have been successful in companies and the public sector.
The purpose of this course is to look beyond the hype and provide a balanced picture of what blockchain can do and what it cannot. Students will learn about its technical building blocks, important but often misunderstood characteristics such as energy consumption, and areas of successful and unsuccessful application. Through term papers, students will investigate where and how the technology can create value. The course will answer questions such as:
- What are the core technical building blocks of blockchains and the characteristics of smart contracts?
- Why are some blockchains highly energy-demanding while others are not, and can blockchain use reduce overall energy use?
- What are the unique technical and organizational benefits and challenges of using blockchain?
- What areas of applications have been explored so far and where and why have blockchains proven useful?
- What are NFTs and in which marketplaces can they be used?
- How can blockchains support privacy-oriented digital identities?