Future Money
  • Syllabus
  • Calendar
  • Social Sciences
  • Informatics
  • UCI
  • Before Class
  • Week 1
  • Week 2
  • Week 3
  • Week 4
  • Week 5
  • Finals Week

Summer Session I - 2015

Welcome to the class!

Prof. Bill Maurer

Prof. Bill Maurer

Prof. Don Patterson

Prof. Don Patterson

Caitie Lustig

TA: Caitie Lustig

Before Class
Get a copy of the textbooks
Payments Industry
Bitcoin Internals
Watch the welcome video
YouTube
Review the Syllabus
Syllabus
Review the Calendars
UCI Summer Session
Course Calendar (this is it!)
Find the class MessageBoard
EEE MessageBoard
Activate email updates on the "Ask Us Anything!" forum
Introduce yourself on VoiceThread
Video Tutorial: Signing up
Video Tutorial: Making the introduction
Link to Register for VoiceThread
Link to Participate in VoiceThread (1 pt)
Week 1

What is Bitcoin?

June 22 - June 28

Learning Activities:

Read the Following General Articles:
A Revolution in Money
What Bitcoin is and why it matters
Silk Road
The Underground Website Where You Can Buy Any Drug Imaginable
How the Feds Took Down the Silk Road Drug Wonderland
Silk Road Creator Ross Ulbricht Sentenced to Life in Prison
The Rise and Fall of Silk Road Part 1
The Rise and Fall of Silk Road Part 2
Former feds charged with stealing Silk Road bitcoin
Inside the Chinese Bitcoin Mine That's Grossing $1.5M a Month
Read the Following Technical Articles:

Please read them quickly to get a general overview of the technical issues associated with bitcoin. We will go into them in more depth (and re-read them) in week 3.

Bitcoin: a peer-to-peer electronic cash system (This is the original bitcoin paper)
Bitcoin Internals: A Technical Guide to BItcoin: Ch 1, 2, and 4
Explore the following online resources:
Coinbase, a bitcoin wallet service
  • Try and find the current exchange rate for bitcoin.
  • Optionally, make an account
Bitcoin Watch (provides statistics on exchange rates for bitcoins)
  • Try and find the current market capitalization of bitcoins ($3,321,986,976 on 5/30/15)
  • Find out the volume of bitcoin traded in the last 24 hours in U.S. dollars.
Watch these videos:
Here is bitcoin (part 1), 6 min.
Here is bitcoin (part 2), 12 min.
Here is bitcoin (part 3), 16 min.
What is an "algorithm"?, 4 min.
What is a "Hash Code"? (part 1), 14 min.
What is a "Hash Code"? (part 2), 14 min.
Bitcoin Mining, 23 min.
Alternative and Complementary Currencies (part 1), 17 min.
Alternative and Complementary Currencies (part 2), 7 min.
Need help?
"Ask Us Anything" Forum
Ask your questions here! Post any questions about the reading, the video lectures, or general topics related to the class. Feel free to chime in with your own answers to your peers' questions, too! We will regularly check this forum to address your questions.
Optional:
Want to know more? Here are some optional supllementary resources for digging deeper.
Wikipedia article on "Algorithm"
Wikipedia article on "SHA-2" hash functions
Online tool to calculate SHA-256 fingerprints

Assessments:

Discussion:
Try to Explain Bitcoin Forum: Due: 6/24 11:59pm
In one paragraph, explain what bitcoin is, in terms that someone who has only used cash their whole life might understand.
Comment on at least one classmates post: Due: 6/28 11:59pm
Quiz:
Week 1 Content Due: 6/28 11:59pm
Week 2

What is Money?

June 29 - July 5

Learning Activities

Watch this video:
Welcome to Week 2
Read the Following General Articles:
William Stanley Jevons, 1875, Money and the Mechanism of Exchange, chapters 1, 2, 3
Paul Bohannan, 1959. The impact of money on an African subsistence economy. The Journal of Economic History, Vol. 19, No. 4, (Dec., 1959), pp. 491-503. URL
Michael Hudson, The archaeology of money: debt vs. barter theories of money’s origins. in L. R. Wray (ed.),Credit and State Theories of Money: the Contributions of A. Mitchell Innes, Edward Elgar, Cheltenham. 99–127.
Watch these videos:
Origins of Money (part 1), 10 minutes
Origin of Money (part 2), 10 minutes
Origin of Money (part 3), 17 seconds
Characteristics of Money, 23 minutes
Encryption - Symmetric Key, 16 minutes
Encryption - Asymmetric Key, 15 minutes
Explore the following online resources:
The Transactions Archive
This is an online resource maintained here at UC Irvine. It is a forum for archaeologists, anthropologists, payments industry professionals, computer scientists, curators and others to post images and reflect on the history of payment-related and transactional artifacts.
List of alternative cryptocurrencies
Explore this list of alternatives to bitcoin. Most of them are based on the same computer code as bitcoin.
Need help?
"Ask Us Anything" Forum
Ask your questions here! Post any questions about the reading, the video lectures, or general topics related to the class. Feel free to chime in with your own answers to your peers' questions, too! We will regularly check this forum to address your questions.
Optional: Want to know more? Here are some optional supllementary resources for digging deeper.
Crypto Primer: Understanding encryption, public/private key, signatures and certificates

Assessments:

Discussion:
Bitcoin and the functions of Money: Due: 7/1 11:59pm
What functions of money does bitcoin fulfill? How well does it fill each function?
Comment on at least one classmates post: Due: 7/5 11:59pm
Symmetric Key Lab:
Symmetric Encryption Lab Instructions, 7 minutes
Symmetric Encryption Lab Encryption Site
Symmetric Encryption Lab Forum
  • This is the discussion forum were you put your lab work. See the accompanying video for details of what to do.
  • Each person posts one message encrypted with the password "Here comes the future of money" Due: 7/1 11:59pm
  • Each person decrypts one other person's message that hasn't been decrypted yet. Due: 7/3 11:59pm
  • When someone decrypts your message, you reply to confirm they got it right. Due: 7/5 11:59pm
  • Use the Blowfish symmetric cipher with CBC (cipher block chaining).
  • Represent your encrypted data in Hex.
Asymmetric Key Lab:
Asymmetric Encryption Lab Instructions, 7 minutes
Asymmetric Key Generation Site
Asymmetric Encryption Lab Encryption Site
Aymmetric Encryption Lab Forum
  • This is the discussion forum were you put your lab work. See the accompanying video for details of what to do.
  • Each person generates an asymmetric key-pair using the RSA algorithm.
  • Each person posts their public key in a discussion forum post and saves their private key on their local computer (it's secret!) Due: 7/1 11:59pm
  • Each person goes to one other person's post, uses the public key there to encrypt a secret message back to them. That encrypted message is posted as a reply to the public key. Due: 7/3 11:59pm
  • When someone sends you an encrypted message you decrypt it and reply with the decrypted message in the forum. Due: 7/4 11:59pm
  • The sender confirms that you decrypted their message correctly. Due: 7/5 11:59pm
  • Use the RSA asymmetric cipher key length of 2048.
Essay 1:
Alt-coins and the functions of Money: Due: 7/5 11:59pm
Choose one alt-coin and see what you can learn about it. Introduce your alt-coin: when was it invented? by whom? why? What functions of money does it fulfill? How are people using it (or not)? Your essay should be 2-3 pages, double-spaced, in 12-point font, and submitted to the EEE drop box: https://eee.uci.edu/toolbox/dropbox/index.php?op=openfolder&folder=412308
Week 3

Dive into the Blockchain

July 6 - July 12

Learning Activities

Watch this video:
Welcome to Week 3
Read the Following Technical Content:
Bitcoin Internals: A Technical Guide to BItcoin: Ch 1, 2, 4, 8
You should have skimmed through some of this already for Week 1. Now, read it more closely. Pay particular attention to chapters 1, 2, 4 and 8.
Crypto flaws in Blockchain Android app sent bitcoins to the wrong address
Forget Bitcoin — What Is the Blockchain and Why Should You Care?
Watch these videos:
Sending Bitcoin I, 14 minutes
Sending Bitcoin II, 19 minutes
One way to get your bitcoin stolen, 10 minutes
Bitcoin Transaction Details I, 15 min
Bitcoin Transaction Details II, 20 minutes
Bitcoin Block Details, 11 minutes
Bitcoin Blockchain Statistics, 10 minutes
Uses of the blockchain, 17 minutes
Explore the following online resources:
Monegraph
Take a look at Monegraph, which uses a blockchain to verify the authenticity of a digital work of art. Reflect on how there's a kind of "double spending" problem for digital art.
This live event is over, but you can watch the recording on YouTube Join us for an online discussion with the founder of Monegraph, Kevin McCoy. The panel will start on July 7th at 10am Pacific Time.
You may either attend the event live and post your name in the chat channel ( )on the side for a virtual roll call, or you can watch it after the broadcast and leave a comment on the youtube page for credit.
Need help?
"Ask Us Anything" Forum
Ask your questions here! Post any questions about the reading, the video lectures, or general topics related to the class. Feel free to chime in with your own answers to your peers' questions, too! We will regularly check this forum to address your questions.
Optional: Want to know more? Here are some optional suplementary resources for digging deeper.
A description of a bitcoin transaction on the bitcoin wiki
A full description of the "Script" cryptographic rights programming language
Python code to validate a block

Assessments:

Discussion:
Exploring the blockchain: Due: 7/8 11:59pm
Explain in your own words what is happening in the blockchain. How is this similar or different from an everyday cash transaction? Find and follow a blockchain transaction and talk about how you did so.
Comment on at least one classmates post: Due: 7/12 11:59pm
Sending Money Lab:
Instructions, 2+ hours Due: 7/12 11:59pm
Quiz:
Quiz Due: 7/12 11:59pm
Week 4

Bitcoin in the Payments Ecosystem

July 13 - July 19

Learning Activities

Watch this video:
Welcome to Week 4
Read the Following Textbook Content:
Payments Systems in the US: A Guide for the Payments Professional

Please read:

  • Chapter 1
  • Chapter 2
  • Chapter 5 ( “Core systems: Cards.” ) the following sections:
    • pp.65-75
      • “History and Background”
      • “Types and Brands”
    • pp. 96-98
      • "Card Issuance—Prepaid cards"
  • Chapter 10, (“Emerging Payments”)
    • pp 151-152
      • “What it Takes to Succeed in Emerging Payments”
Bitcoin, the Two-and-a-Half Party Model, and New Payment Rails

Diagram what the author is talking about: what are the different entities involved in a "four-party model" and how is bitcoin a "two-and-a-half" party model? Also, pay attention to what he is saying about push versus pull payments (refer to the reading above for help!). Finally, why does he say, "putting aside the “bitcoin as store of value” discussion"?

Watch these videos:
An Overview of the Payments Systems Industry, 13 minutes
Domains of Payment, Part 1 video, 13 minutes
Domains of Payment slideshow, 16 minutes
Open and Closed Loop Payment Systems, 26 minutes
Lana Swartz (USC) Consult Hyperion podcast on the History of Diners Club (audio only), 15 minutes (local copy)
Bill Maurer's Keynote at MoneyLab, Amsterdam, 16 minutes
Byul Coffee takes bitcoin and has an ATM, (5 minutes)
Read these general interest articles:
Consumers Union, Rebate Cards Come With Fees and Other Gotchas
Forbes, How American Express Gains a Competitive Advantage from its Closed-Loop Network
Bloomberg, Bitcoin Targets Payments Business of Giants Visa to JP Morgan
Need help?
"Ask Us Anything" Forum
Ask your questions here! Post any questions about the reading, the video lectures, or general topics related to the class. Feel free to chime in with your own answers to your peers' questions, too! We will regularly check this forum to address your questions.

Assessments:

Discussion:
Payments systems discussion: Due: 7/15 11:59pm
How is bitcoin similar or different from other payment systems in the US?
Comment on at least one classmates post: Due: 7/19 11:59pm
Essay 2
Go Shopping!
Go to a physical world store or other place of business and purchase something with a non-cash method of payment. Observe all the steps to the transaction, as well as the technological devices involved. How many are there? Can you spot the branding on each device? Jot down notes on your experience of the transaction. Then, write an essay of 2-3 pages, 12 point font, double-spaced, documenting the physical experience of the transaction, the different devices involved, and, as best you are able, the flow of information, electricity and funds that made it happen. Due: 7/19 11:59pm
Week 5

Risks, Regulations, and the Future of Money

July 20 - July 26

Learning Activities

Watch this video:
Welcome to Week 5
Read the Following Articles:
Press Release: FinCEN Publishes Two Rulings on Virtual Currency Miners and Investors
Press Release: IRS Virtual Currency Guidance
(FinCEN) Guidance on "Application of FinCEN's Regulations to Persons Administering, Exchanging, or Using Virtual Currencies" by US Department of Treasury, Financial Crimes Enforcement Network
Is Bitcoin Free Speech? by Sarah Jeong
9 Questions Surrounding MazaCoin, the Lakota CryptoCurrency: Answered, by Alysa Landry
Bitcoin and the Fictions of Money by Quentin Hardy, New York Times
NY Financial Regulator Lawsky Releases Final BitLicense Rules for Bitcoin Firms, by Michael J. Casey, Wall Street Journal, June 3, 2015.
Company leaves New York, protesting 'BitLicense' by Everett Rosenfeld
Bitcoin Regulation Bill Approved by California State Assembly, by Yessi Bello Perez, CoinDesk, June 4, 2015,
California Assembly Bill 1326
Watch these videos:
Regulation and Bitcoin, 14 minutes
Current Regulatory Thinking on Bitcoin, 13 minutes
Bitcoin regulation in the U.S. (Sorry for the low volume!), 16 minutes
High Profile Bitcoin Cases, 9 minutes
Watch this interview:
Monumus
Explore this website and try to understand Monumus' product and how it works. What do the founders imagine that it will do? Is bitcoin central to that vision?

This event is over, you can watch the recording on YouTube!

Join us for a live Interview with Brad Vaivoda, founder of Monumus Brad Vaivoda 1pm Pacific, 7/20
You may either attend the event live and post your name in the chat channel on the side for a virtual roll call, or you can watch it after the broadcast and leave a comment on the youtube page for credit.
Explore these online resources: and catalyst for change
Perkins Coie is a global law firm that is developing a specialty in digital and cryptographic currencies. Download and try out their CoinLaw App to explore the current state of law regarding bitcoin and other cryptocurrencies around the world:
FinCEN recently fined Ripple Labs for operating without a money transmitter license. See Financial Crimes Enforcement Network (FinCEN) Press release, May 5, 2015, FinCEN Fines Ripple Labs Inc. in First Civil Enforcement Action Against a Virtual Currency Exchanger
Library of Congress, Regulation of Bitcoin in Selected Jurisdiction
Cryptotechnologies, a major IT innovation
Need help?
"Ask Us Anything" Forum
Ask your questions here! Post any questions about the reading, the video lectures, or general topics related to the class. Feel free to chime in with your own answers to your peers' questions, too! We will regularly check this forum to address your questions.

Assessments:

Discussion:
Read this article:
"Leaderless Bitcoin Struggles to Make Its Most Crucial Decision"
Consider this prompt in light of *all* of the content from this course: Who controls bitcoin? The government, the network or the algorithm. Discuss. Due: 7/23 11:59pm
Comment on at least one classmates post: Due: 7/26 11:59pm
Finals Week

Final Exam

July 27 - July 29

Learning Activities

Watch this video:
Week 5 Wrap-up, Here comes the final...

Assessment

Instructions:

CHOOSE This final consists of 5 short essay questions from which you should pick THREE. Please write at least 350 words on each (1050 words total). What you say is more important than how many words you use. If you wish to support your argument with additional figures and/or references, please refer to them by URL and make sure that the teaching staff can see them for at least two weeks. This is open note, open book; you may want to go back to some of the course material for reference.

The prompts will be released Sunday, 7/26 at 6pm via the EEE quiz system.

WRITE Although you can choose to compose your answers in the space provided in this quiz, there is a risk that a problem with your browser might cause you to lose your work. A recommended method is to compose your answer on your local computer using software like MS Word. When you are ready to submit your answer you can cut and paste your document. Once you open the quiz and see the prompts, you only have 2 hours to submit your answers. There are pros and cons to each method; do whatever is more comfortable for you but keep an eye on the timer!

The quiz must be submitted by Wednesday 7/29 at 11:59pm
Need help?
"Ask Us Anything" Forum
Ask your questions here! Post any questions about the reading, the video lectures, or general topics related to the class. Feel free to chime in with your own answers to your peers' questions, too! We will regularly check this forum to address your questions.

Where to go from here?

You could subscribe to this mailing list:
UCI bitcoin-general mailing list
You could explore these bitcoin resources:
Coindesk: 9 bitcoin data resources
You could follow this blog:
Payment News
The End

© 2015 Bill Maurer & Donald J. Patterson