Blockchain

This week is dedicated to blockchain and cryptocurrency.

Cryptocurrency is complex and varied because it combines different technologies, rules, and ways of running networks. Each cryptocurrency works differently, with its own way of creating coins, confirming transactions, and keeping the system secure. It's seen as part of the future because it powers Web3, a more open internet where people can trade, interact, and control their digital assets directly without relying on banks or big companies. This is known as decentralisation.

The most important and popular systems are Bitcoin and Ethereum.

For more technical definitions you can read this paper.

Session Slides

Since today's topic is new and quite complicated, we are providing today's slides for reference.

Useful resources for today

  • The solidity contracts guide
  • Foundry installation guide
  • Blockchain uses a lot of cryptography so please make use of our cryptography session
  • Blockchain also uses a lot of web concepts so go have a look at our web session for a quick refresher

Today's challenges

History and Motivation

Cryptocurrency can seem very abstract at first glance. Its origins trace back to growing dissatisfaction with the traditional financial system, in particular right after the 2008 financial crisis which exposed weaknesses in centralised banking. In 2009, pseudonymous Satoshi Nakamoto launched Bitcoin, introducing a peer-to-peer digital currency that operates without banks or governments. By incorporating blockchain technology, which was proposed long before, Bitcoin allowed people to transfer value securely over the internet without relying on trusted intermediaries.

The broader motivation behind cryptocurrency is to create a financial system that is more transparent, accessible, and resistant to censorship. Over time, platforms like Ethereum expanded this idea beyond digital money by enabling smart contracts and decentralised applications. Together, these innovations aim to give individuals greater control over their assets while reducing dependence on centralised institutions.

Blockchain topics are still considered relatively new and actively researched (that includes this very Institution), with new primitives being developed to improve scalability, privacy, and security.

(Note that Ethereum underwent The Merge and the the White paper is outdated)