MIT605 · Semester III · Official Syllabus

Digital Economy Syllabus

Blockchain, digital assets, DeFi, and the transformation of economic systems — from digital money to Web 3.0.

Unit 1: Introduction to Digital Economy

Physical and digital money: evolution from commodity to fiat to digital, currency pegs, the impossible trinity, banks vs e-money wallets, and digital market platforms as economic infrastructure.

  • Physical and Digital Money: History, Different Forms, Currency Pegs, Banks and e-money Wallets
  • Digital Market Platforms as Economic Practice
  • Search Engines
  • Social Media
  • e-commerce Platforms
  • Online Games

Unit 2: Blockchain Technology

Foundations of blockchain: cryptographic primitives, block structure, types of blockchain, consensus mechanisms (PoW, PoS, dBFT), ICOs, and enterprise blockchain applications across diverse sectors.

  • Introduction of Blockchain: History, Public Key Cryptography, Hash, Digital Signature, Block Structure, Working Mechanism
  • Types of Blockchain: Centralized vs Decentralized, Permissioned vs Permissionless
  • Proliferation of Blockchain Technology, Initial Coin Offering
  • Consensus Mechanism: PoW, PoS, Hybrid, dBFT, and Proof of Concept
  • Blockchain Application: Insurance, Health, Defense, Healthcare, Food, Credit Rating, Data Management, Internet Security, Logistics and Supply Chain

Unit 3: Digital Assets

Bitcoin architecture, mining, wallets, and addresses; Bitcoin issues (block size, forks, fees, supply); Ethereum and smart contracts; and digital token typologies and transaction mechanics.

  • Bitcoin: Introduction, Bitcoin Mining, Working Mechanism, Bitcoin Wallets, Bitcoin Address
  • Bitcoin Issues: Block Size, Split, Transaction Fees, Bitcoin Supply and its Future
  • Ethereum: Introduction, History, Comparison with Bitcoin, Actors in the Ethereum Ecosystem, Smart Contracts
  • Digital Tokens: Introduction, Types of Tokens (Native, Asset-backed, Contract, and Utility), and Transactions

Unit 4: Decentralized Finance (DeFi)

Foundations, history, and advantages of DeFi; blockchain as DeFi infrastructure; DeFi primitives (transactions, tokens, custody, supply adjustment, swaps, loans); and DeFi applications (lending, derivatives, tokenization).

  • Introduction, History, Key Issues in DeFi, and Advantages over Traditional Approach
  • Blockchain as DeFi Infrastructure: Blockchain, Cryptocurrency, The Smart Contract Platform, Oracles, Stablecoins, Decentralized Applications
  • DeFi Primitives: Transactions, Fungible and Non-fungible Tokens, Custody, Supply Adjustment, Swap, Collateralized and Uncollateralized Loans
  • DeFi Applications: Credit/Lending, Decentralized Access, Derivatives, Tokenization

Unit 5: Future of Blockchain and Web 3.0

The architectural shift from Web 2.0 to Web 3.0; combinatorial blockchain innovations and the metaverse economy; and assessing Web 3.0 aspirations for decentralization and inclusivity.

  • Introduction to Web 3.0
  • Combinatorial Innovations, Metaverses, and Beyond
  • Web 3.0 Aspirations for Decentralization and Inclusivity

Lab: Laboratory Works and Case Studies

Practical implementations: SHA-256 and PoW, Merkle trees, blockchain structure, mining simulation; and case studies on CBDC for Nepal and neobanking blockchain applications.

  • Lab 1: Implement SHA-256 to understand the concept of PoW in blockchain technology
  • Lab 2: Implement the concept of Merkle Tree and Merkle root concepts
  • Lab 3: Build the fundamental structure of a blockchain
  • Lab 4: Implement mining within a blockchain environment
  • Case Study I: CBDC identifying appropriate policy goals and design for Nepal
  • Case Study II: Neobank: An application of a Blockchain Technology