Introduction to Fintech

(1) Purpose and content of the workshop

Will “money” be transformed and a true “Internet of Money” emerge? Bitcoin, which started from the innovative story of “ending the centralized financial monopoly with high cost, inefficiency, lack of interoperability, and opaque system,” and the emergence of blockchain technology to support it. From this technology was born the great swell of Web 3.0/DeFi. And with the approval of the U.S. SEC for a Bitcoin ETF on January 10, 2024, further progress is expected in the future.

In this class, students will start from the background of basic financial theory and fintech to understand Web 3.0/DeFi, and learn about the latest business models and financial technologies in the financial domain of Web 3.0.

*Textbook (recommended by the instructor, read before the course for a better understanding)

The Economics of Fintech: Theory and Practice of Advanced Financial Technologies, Book – Aug 23, 2019

Sahoko Kaji, Teruo Nakatsuma, Masahiro Fukuhara

Keio University Press

(2) Contents

(1) Financial Foundations in WEB 3.0

Finance has been governed by centralized financial institutions that have earned a high level of “trust” from society. However, with the progress of the fintech revolution, fintech venture companies are now taking on settlement and asset management functions. However, this fintech venture still uses a centralized mechanism (incl. platform) with trust at its core. Bitcoin and the blockchain technology that supports this centralized financial system have opened a hole in the financial system, and participants will learn about the historical background, basic technology, and application examples.

(2) Financial Applications in WEB 3.0 – DeFi, IEO, etc.

Blockchain became independent from Bitcoin over time and expanded its functions, leading to various new technologies such as smart contracts. Based on these smart contracts, DeFi (Decentralized Finance), a form of finance in the Web 3.0 era, was created. In this session, participants will understand the basics of finance in the era of Web 3.0 and explore the possibilities of fintech companies in the era of Web 3.0 by learning about specific cases of fintech ventures.

(3)Token Engineering

We will discuss the role of DAO (Decentralized Autonomous Organization), which is the ideal form of Web 3.0, and tokens, which are cryptographic assets that support DAO. This token is called the Internet of Money, and is the core of community management that promotes shared values and behavioral change. The participants will learn about DAOs and the token economic sphere, including specific examples.

(4) Group Presentation

Groups will be asked to come up with their own entrepreneurial ideas in the Web 3.0/DAO area.