A blockchain micro-credential course for business professionals

Whether you are an employee in the corporate world, a business manager, an Executive, a creative designer or an entrepreneur starting or running your own company, there is now a credentialled course about blockchain that provides you with an intense education about blockchain aligning with your professional interests.

Background

I was asked by Torrens University to create a 6-week full-time course in blockchain for business professionals who are not IT experts but who want to gain significant proficiency in the topic to enable them to bring blockchain solutions into their business.

As I really like the educational approach by Torrens, I was happy to do so. Students are given access to the latest industry and academic resources about blockchain, and are given guidance, learning activities and mentoring to assist them through their course. The online learning is complemented by human interactions with peers and educators.

Outcome goals for students

The course is geared to busy professionals who may be experts in their own fields and want to know enough about blockchain to be able to make important business decisions and to sustain an evolving knowledge of blockchain. Students use their expertise from their own industry combining it with blockchain learning to fulfill their assessment activities.

At the end of the course, apart from obtaining a credential, students have confidence in their knowledge about blockchain, are able to make professional decisions about blockchain projects and can sustain continuous learning about blockchain topics including tokenisation and cryptocurrency. Also, students are aware how to keep learning about blockchain issues as the technology evolves.

Course structure

There are six modules making up the micro-credential and three assessments need to be passed. Those modules encompass knowledge, activities and assessments about:

1. The language of blockchain

2. The types of blockchain

3. The business of blockchain

4. The money of blockchain

5. Blockchain and the law

6. Blockchain collaboration and governance.

Module 1 The language of blockchain

To understand blockchain means understanding a new language with terminology that evolved from the software world.

Blockchain is pushing us into an era of automated trust. Holistically a blockchain is a trust machine. It manufactures trust through very clever software code executed in a distributed manner. At a more detailed level, blockchain is generally an open-source technology that maintains data as a shared record (via linked blocks) distributed over many nodes around the world. Nodes represent computers owned by people or organisations who do not necessarily know each other. Instead of relying on a central authority, the entire network of combined computers is responsible for the integrity of the data and needs to approve changes made to that data. That is the crux of a (public) blockchain.

The consequence is that we now have a social technology providing a blueprint for automating trust which will eventually lead to automated businesses called decentralised autonomous organisations (DAOs).

Concepts presented in this module include: Immutable ledger; Protocol; Dis-intermediation; Decentralisation; Consensus; Hashing; Decentralised Application (DApp); Decentralised Autonomous Organisations (DAO); Public and private keys; Smart contract; Mining; and Censorship resistance.

Learnings from Module 1

Outcomes of Module 1 for the students include understanding:

• The key terms and concepts that are part of the blockchain world;
• The socio-economic context and why the world is shifting towards blockchain solutions; and
• The significant benefits of blockchain and that it is still an evolving technology.

Specific learning activities encourage the students to operate in a manner similar to that of a member of a blockchain community. Students become immersed in a new world.

Module 2 The types of blockchains

There are thousands of blockchains in operation around the world, and due to the kind of governance consensus protocols on which blockchains are based, there are various types. For example, most blockchains can be classified as permissioned (often called private) or permission-less (often called public) blockchains. Each has its own advantages and is used in different scenarios. That distinction though continues to evolve but also merge.

Module 2 focuses on three of the most commonly used and popular blockchains:

· Bitcoin is a prime example of a permission-less blockchain used for sending bitcoin $BTC between people; it uses the Proof of Work (PoW ) protocol, which generates a high degree of trust and security;

· Ethereum is also a permission-less blockchain that offers smart contracts, tokens and also uses the PoW protocol but is changing to the proof of stake (PoS) protocol to achieve faster transaction speeds with better energy efficiency; and

· Hyperledger is a permissioned blockchain that is used by businesses within trusted consortiums; it uses various validator protocols.

Students are encouraged to explore other interesting blockchains (e.g., Neo, EOS, IOTA, Ontology, Elastos, Tezos, Waves and Ripple).

Learnings from Module 2

Outcomes of Module 2 for the students include understanding:

• There are many blockchains in the world of different types;
• The distinction between public and private blockchains and their key differences;
• Three key blockchains in use today: Bitcoin, Ethereum and Hyperledger;
• Consensus protocols, such as proof of work (PoW), proof of stake (PoS) and byzantine fault tolerance (BFT);
• Trends in how blockchains are evolving their consensus protocols.

The learning activities encourage students to examine a live blockchain by watching its dashboard as real-time transactions and block updates occur.

Module 3 The business of blockchain

Not only does blockchain offer the opportunity to improve current business practices and efficiencies (such as those of global supply chains), the technology also means that new business models are constantly unfolding.

These new business models feed off the many benefits that blockchain can provide, such as provenance (tracking the source of assets), decentralised payments and financial instruments (the new world of Decentralised Finance [DeFi]), identity management, contracts and dispute resolution, real-time visibility into the status of a transaction and novel customer engagement programmes via loyalty tokens.

Blockchain is also changing the behaviours of people in business communities. For example, groups of potentially mistrusting people are coordinating around a common interest (such as supply chain problems) for which previously, they would not have shared information. Now they can use cryptographic hashes of information and smart contracts to verify that certain practices have taken place without disclosing potentially business-sensitive information.

We see the potential for a worldwide system of supply chains that uses resources much more efficiently and that could radically change the trading terms of the global economy by unlocking information and attaching unique digital assets (tokens) to each part of a production process. This can unlock value for exchange at intermediate stages of multiparty manufacturing and shipping processes and give businesses greater flexibility to find markets and price risk at any point along the chain. We end up with dynamic demand chains rather than rigid supply chains, which results in more efficient resources for all.

Blockchain is moving us into a fourth industrial revolution not because one particular new line of products is coming, but because a variety of technologies such as Internet of Things (IoT) sensors, mobile devices and artificial intelligence (AI) are combining to create whole new systems.

Learnings from Module 3

Outcomes of Module 3 for the student include understanding:

• How industry is transforming in a graduated manner to blockchain-based solutions as people begin to understand how to design and implement solutions based on the value inherent in blockchain solutions;
• Examples of successful blockchain solutions across many industry domains;
• Issues involved in the tokenisation of digital assets as outcomes from blockchain solutions;
• How ‘big’ blockchain is; that is, you can create an entirely new economy and bring competitors into a supply chain as collaborators; and
• The challenges still being addressed in global blockchain solutions.

Learning activities encourage the student to research and articulate an actual blockchain solution within their industry along with recognition of how tokenisation is the driving force propelling its solution.

Module 4 The money of blockchain

With the use of blockchain, we are now able to run a marketplace in a decentralised way to exchange data and value. Decentralisation is recognised as a cost-effective way of governing and controlling marketplaces and thus avoiding monopolistic practices.

Tokenisation enables businesses to lower many costs by eliminating intermediaries while also allowing the externalising of risk that previously could only be absorbed internally by a business. In effect, public blockchains essentially serve as token management machines enabling tokenised business models, which in turn can generate global economies using that token as the driver.

Tokens can represent assets (e.g., gold) or values (e.g., ownership rights) or a service fee (e.g., gas to use a blockchain). One of benefits of tokens is that they represent digital assets that cannot be copied or faked. Additionally, the cost of issuance is low because no intermediary is involved. Further, the token itself works synergistically with a smart contract containing logic that will automatically be executed (such as an automatic deletion date). Governance rules can be executed using tokens to represent voting rights or changes to the protocol.

With new discoveries of uses for tokens, more possibilities are uncovered, but with that, regulatory complexity also increases. Yet blockchains enable multiple dimensions of value, which in turn allows innovation and value creation by breaking down walls between business segments and opening up possibilities.

Learnings from Module 4

Outcomes from Module 4 for the student include:

• Gaining an appreciation of the possibilities of blockchain for creating global economies and new business models due to the different types of tokens that blockchain can enable;
• Gaining an understanding of different types of tokens, their purpose and the different roles they can play in a blockchain economy;
• Examining industry Use cases (scenarios) that use various types of tokens;
• Familiarity with DEXs (Digital Exchanges) and their significance; and
• Gaining experience in buying and selling tokens.

The learning activities encourage students to experience using an exchange to buy/sell tokens.

Module 5 Blockchain and the law

The global nature and fast pace of blockchain and cryptocurrency innovation have forced governments around the world to examine and amend existing rules and regulations to ensure legal protections are in place concerning blockchain. Countries have also improved their regulatory frameworks so that the frameworks are more aligned to promote blockchain. Some countries (and their jurisdictions) are more blockchain- and cryptocurrency-friendly than others.

Law itself is considered a technology of trust. Innovations due to blockchain push on the boundaries of the law for many reasons. Blockchains cross over borders and hence jurisdictions and bring innovations via tokens, smart contracts and DApps. Further, blockchain businesses can be financed via crowdfunding offering sometimes (financial) securities as an outcome of that funding. These all have regulatory, legal, ethical and taxation ramifications.

Smart contracts are self-enforcing agreements that entail business logic or governance rules for aspects of agreements. Are they legally binding? What are the ethics in issue resolution? Do the legal issues become more complex for tokenized networks such as DAOs (decentralized autonomous organisations)?

The state of practice in blockchain could evolve such that the central question becomes not how to regulate blockchains but how blockchains regulate! This could happen because smart contracts become law and blockchains form DAOs which could then run themselves using the smart contracts. In effect, we will have automated law. Is that a good idea? What are the social, legal and ethical considerations?

Blockchains will also create friction as to the purpose of company Boards which could be made redundant. If decision-making rules can be articulated and codified into smart contracts, the Board’s role then changes to that of design, implementation, and monitoring of those rules.

Learnings from Module 5

Outcomes of Module 5 for the student include recognizing:

• The spectrum of legal issues that blockchains, their tokens, smart contracts and other innovations generate
• Ethical implications of whether blockchains and smart contracts are or should be legally binding
• How regulators are trending regarding blockchain regulatory frameworks, roadmaps and regulatory sandboxes
• Real-world current examples of regulatory frameworks and roadmaps.

The learning activities encourage students to research blockchain regulations and appreciate the need to read the law or at least seek legal advice regarding blockchain issues especially if starting up a business.

Module 6 Blockchain collaboration and governance

Groups of companies have found it beneficial to form consortiums to support their blockchain activities as well as integrate to enable scaling up of their blockchain solutions.

Companies, including competitors, have resorted to the consortium model in their approach to blockchain exploration and adoption to take advantage of the technology by balancing the benefits.

Some of the consortium benefits include economical cost savings, expedited learning, risk sharing, more quickly building critical mass of adoption and faster recognition and creation of standards. De-centralised decision making can significantly reduce or overcome frictions and failures inherent in centralised decision-making processes when different stakeholders work together for a common vision.

Blockchains are stretching the boundaries of governance at two levels: governance of the human network (such as consortiums who combine resources to operate a blockchain solution) and governance at the protocol operations level (such as what social consensus mechanism will be used along with incentives and how stakeholders make upgrade decisions).

The real success of blockchain solutions will depend on their internal capacity to instantiate new forms of governance. Successful blockchain governance cannot be merely an idealised design question. It requires attention to the ways that real world systems develop and interact. Effective solutions will need to draw upon the best aspects of legal and technical trust.

Learnings from Module 6

Outcomes of Module 6 include learning about the multiple dimensions to the concept of governance of blockchains which address the human network (consortiums) and the automated network (the protocol). The learning activities enable the students to delve into the subtle yet critical human networking and powerful communities that make up blockchains.

Conclusion

For those looking for a practical yet quick education about blockchain, this course will be of great benefit to you. Not only will you be exposed to the intensity of blockchain issues that are relevant to industry but you will walk away with the ability to sustain continual self-learning of blockchain since the course also teaches you how to find and sustain blockchain knowledge.

You can find details about enrolling in the course DTBC400 Blockchain at https://www.torrens.edu.au/courses/design/graduate-certificate-in-digital-transformation-and-creative-intelligence

Or feel free to contact me at susan.dart@laureate.edu.au

I am a blockchain educator and consultant.