Decentralized Finance (DeFi) Infrastructure from Coursera

Decentralized Finance: The Future of Finance is a set of four courses taught by Campbell R. Harvey (Professor of Finance at the Fuqua School of Business, Duke University, and a Research Associate of the National Bureau of Economic Research) that focus on decentralized finance (DeFi). In this first course, we begin by exploring the origins of DeFi and take a broad historical view from the earliest barter economies, such as the first peer-to-peer exchanges of bartering, to present day. The course also looks at historical examples of money having value even though it is not officially backed.

We then focus on the key infrastructure components: blockchain, cryptocurrency, smart contracts, oracles, stablecoins and decentralized applications (or dApps). This includes discussion of the mechanics of the Ethereum and Bitcoin blockchains including cryptographic hashing.

Next, we focus on the specific problems that DeFi is designed to solve: inefficiency (costly, slow, and insecure today), limited access (1.7 billion are unbanked), opacity (we need to trust regulators to monitor banks and the regulators have mixed records), centralized control (financial system is oligopolistic imposing higher fees than we would have in a competitive market) and lack of interoperability (it is difficult to move funds from one financial institution to another today). The course closes by exploring many of the myths about the crypto space.

What's inside

Syllabus

The History of Decentralized Finance

This module provides a historical perspective of exchange beginning with early barter, specie currency (backed by, e.g., gold), fiat currency and electronic transfers. The module introduces some of the key problems that have arisen with the current system. It closes with the introduction to Satoshi Nakamoto’s famous 2008 paper which introduced cryptocurrency.

DeFi Foundations

This module introduces the key foundations for DeFi, starting with the mechanics of blockchain including cryptographic hashing. The module then explores the innovation of smart contracting - a key ingredient for DeFi. There is also a discussion of the differences between the first cryptos and stablecoins.

Problems DeFi Solves

This module explores the key problems with today’s legacy financial system which include: inefficiency (costly, slow, and insecure transactions); limited access (many cannot access banks and many that have bank accounts find it difficult to get loans); opacity (it is unclear how healthy our commercial financial institutions are); centralized control (current system is dominated by oligopolies that push prices higher than competitive prices) and interoperability (difficulty in moving funds across different legacy financial institutions).

DeFi Myths and Facts

The final module explores various different myths including: all cryptocurrencies are anonymous; blockchains are routinely hacked; quantum computing will destroy all blockchain based currencies; and the crypto ecosystem is so small that it is unlikely to compete with legacy financial institutions.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Explores the origins of decentralized finance from ancient barter economies to modern cryptocurrency

Taught by Campbell R. Harvey, a renowned finance professor at Duke University and Research Associate of the National Bureau of Economic Research

Provides a comprehensive overview of key DeFi infrastructure components such as blockchain, cryptocurrency, smart contracts, and stablecoins

Highlights the inefficiencies, limited access, opacity, centralization, and lack of interoperability issues DeFi aims to address

Debunks common myths and misconceptions about the crypto space, fostering a more informed understanding

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Decentralized Finance (DeFi) Infrastructure with these activities:

Find a mentor who can provide guidance on DeFi

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Accelerate your learning by finding a mentor who can provide guidance on DeFi.

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Identify your learning goals
Network with people in the DeFi field
Ask for referrals
Interview potential mentors

Read Satoshi Nakamoto’s whitepaper on Bitcoin

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Review the seminal text that introduced Bitcoin and will build foundational understanding for the course

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Read about the history of digital cash
Define hashes and how they work
Explore how double-spending is handled

Explain the steps involved in adding a new transaction to the Ethereum blockchain

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Reinforce the mechanics of blockchain technology by recreating the real-world process

Browse courses on Blockchain

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Identify the sender and receiver of the transaction
Specify the amount of Ethereum being transferred
Compute the transaction fee
Append the transaction to the mempool
Wait for a miner to pick up the transaction
Verify the transaction
Add the transaction to a block
Broadcast the block to the network

Seven other activities

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Complete a coding challenge on smart contracts

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Reinforce your understanding of smart contracts by completing a coding challenge.

Browse courses on Smart Contracts

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Find a coding challenge website or platform
Choose a challenge that is appropriate for your skill level
Read the instructions carefully
Write your code
Test your code

Follow a tutorial on creating a decentralized application (dApp)

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Gain hands-on experience by following a tutorial on creating a dApp.

Browse courses on Decentralized Applications (Dapps)

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Find a tutorial that is appropriate for your skill level
Gather the necessary tools and resources
Follow the tutorial step-by-step
Test your dApp

Create a simple Ethereum smart contract

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Apply understanding of the Ethereum blockchain by building a practical application

Browse courses on Solidity

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Choose a development environment
Write the smart contract in Solidity
Compile the smart contract
Deploy the smart contract to the Ethereum blockchain
Test the smart contract

Write a blog post or article on a DeFi topic

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Solidify your understanding of DeFi by writing a blog post or article on a topic of your choice.

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Choose a topic that you are interested in
Research the topic thoroughly
Write a draft of your blog post or article
Edit and revise your work
Publish your blog post or article

Mentor a student who is new to DeFi

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Deepen your understanding of DeFi by mentoring a student who is new to the field.

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Find a student who is interested in learning about DeFi
Meet with the student regularly to answer their questions and provide guidance
Help the student develop a plan for learning about DeFi
Provide the student with resources and support

Write a blog post explaining the key concepts of decentralized finance (DeFi)

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Deepen understanding of DeFi by explaining its key elements to a wider audience

Browse courses on Decentralized Finance

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Identify the target audience
Research the key concepts of DeFi
Outline the blog post
Write the first draft
Revise and edit the blog post
Publish the blog post

Build a DeFi application

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Challenge yourself to apply your knowledge and skills to a practical project

Browse courses on Decentralized Finance

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Identify a problem that can be solved with a DeFi application
Research existing DeFi applications
Design the architecture of your application
Implement your application
Test and deploy your application

Career center

Learners who complete Decentralized Finance (DeFi) Infrastructure will develop knowledge and skills that may be useful to these careers:

Cryptocurrency Analyst

A Cryptocurrency Analyst researches, analyzes, and interprets data related to cryptocurrencies and blockchain technology. By completing this course, you will gain a comprehensive understanding of the history, foundations, and applications of DeFi. This knowledge will be invaluable in your role as an analyst, as you will be able to provide insights into the crypto market and make informed predictions about its future.

See salaries and explore the career path for Cryptocurrency Analyst

Blockchain Developer

A Blockchain Developer designs, builds, and maintains blockchain-based applications. This course can help you understand the fundamentals of blockchain technology, including its infrastructure, components, and applications. Additionally, you will gain an understanding of the challenges and opportunities presented by DeFi and its potential impact on the financial industry.

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Financial Analyst

A Financial Analyst provides financial advice and guidance to individuals and organizations. This course can provide you with a strong foundation in the fundamentals of finance, as well as an understanding of the latest trends and developments in DeFi. This knowledge will enable you to provide more informed advice to your clients and help them make sound financial decisions.

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Investment Banker

An Investment Banker provides financial advice and services to corporations and governments. This course can help you understand the financial markets and the role of DeFi in capital raising and investing. You will also gain insights into the regulatory landscape surrounding DeFi, which will be valuable knowledge as you advise your clients on investment strategies.

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Software Engineer

A Software Engineer designs, develops, and maintains software applications. This course can help you build a strong foundation in computer science fundamentals, as well as an understanding of the latest trends and developments in DeFi. You will also gain hands-on experience with blockchain development, which is a valuable skill in the software engineering industry.

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Web Developer

A Web Developer designs, develops, and maintains websites. This course can help you build a strong foundation in web development fundamentals, as well as an understanding of the latest trends and developments in DeFi. You will also gain hands-on experience with developing decentralized applications, which is a valuable skill in the web development industry.

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Portfolio Manager

A Portfolio Manager manages investment portfolios for individuals and organizations. This course will equip you with the knowledge and skills necessary to make sound investment decisions, including an understanding of asset allocation, risk management, and performance evaluation. You will also gain insights into the potential role of DeFi in portfolio management, which can help you stay ahead of the curve.

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Risk Manager

A Risk Manager identifies, assesses, and mitigates risks for organizations. This course will help you understand the different types of risks associated with DeFi, such as smart contract risk, operational risk, and regulatory risk. You will also gain knowledge of the tools and techniques used to manage these risks, which will be invaluable in your role as a risk manager.

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UX Designer

A UX Designer designs user interfaces for websites and applications. This course can help you understand the principles of user experience design, as well as the latest trends and developments in DeFi. You will also gain hands-on experience with designing user interfaces for decentralized applications, which is a valuable skill in the UX design industry.

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Systems Analyst

A Systems Analyst analyzes, designs, and implements information systems for organizations. This course can help you understand the different components of an information system, as well as the principles of systems analysis and design. You will also gain knowledge of the latest trends and developments in DeFi, which can help you design and implement systems that are more secure and efficient.

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Business Analyst

A Business Analyst analyzes business processes and provides recommendations for improvement. This course can help you understand the principles of business analysis, as well as the latest trends and developments in DeFi. You will also gain knowledge of the tools and techniques used to analyze business processes, which can help you make more informed recommendations.

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Data Analyst

A Data Analyst collects, analyzes, and interprets data to provide insights for organizations. This course can help you understand the principles of data analysis, as well as the latest trends and developments in DeFi. You will also gain knowledge of the tools and techniques used to analyze data, which can help you make more informed decisions.

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Financial Advisor

A Financial Advisor provides financial advice and guidance to individuals and organizations. This course can help you understand the fundamentals of finance, as well as the latest trends and developments in DeFi. You will also gain insights into the regulatory landscape surrounding DeFi, which will be valuable knowledge as you advise your clients on investment strategies.

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Marketing Manager

A Marketing Manager develops and executes marketing campaigns for organizations. This course can help you understand the principles of marketing, as well as the latest trends and developments in DeFi. You will also gain insights into the regulatory landscape surrounding DeFi, which will be valuable knowledge as you develop marketing campaigns for DeFi products and services.

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Project Manager

A Project Manager plans, executes, and closes projects for organizations. This course can help you understand the principles of project management, as well as the latest trends and developments in DeFi. You will also gain knowledge of the tools and techniques used to manage projects, which can help you successfully manage DeFi projects.

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