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MODULE 3 Cryptocurrencies

Chapter Overview

In this module, Bitcoin transactions and its mining mechanism will be in focus. Additionally, you will be introduced to the basics of Ethereum, transactions on Ethereum and smart contracts. Finally, we will cover the principles of decentralized finance (DeFi) by drawing comparisons to the traditional financial system.

Learning Objectives

After the second module, you should be able to:

  • Reiterate how a Bitcoin transaction works.
  • Discuss scalability issues of Bitcoin.
  • Have an understanding for the profitability of Bitcoin mining and the hardware and software
  • requirements for miners.
  • Understand what Ethereum is and what the differences between Ethereum and Bitcoin are.
  • Assess the role of the Ethereum gas fee in transactions.
  • Reiterate how an Ethereum transaction works.
  • Understand the concept and use cases of smart contracts.
  • Understand the different application layers of decentralized finance.
  • Name and analyze the parallels and differences between decentralized finance & traditional finance.
  • Identify current drawbacks with decentralized finance & traditional finance.
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