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Webcast: Decentralized Finance on the Blockchain in 2023

Speaker: Jean-Luc Verhelst

To watch this webcast now, please fill-in your details below:



A course on this topic is available in Singapore Time Zone, London Time Zone and New York Time Zone

Webcast Agenda

  • WEB3 basics
    • Key principles of blockchains and how they redefine data organisation and value transfer
  • Blockchain for business
    • Criteria to assess the viability of blockchain use cases
  • Publicly tradable tokens
    • An overview of a wide set of token functions and features, including central bank digital currencies (CBDCs)
  • Decentralized Finance (DeFi)
    • How DeFi bypasses traditional intermediaries to provide direct access to financial services such as lending, borrowing, and providing liquidity
  • Q&A

1. How is regulation evolving?
A. Regulation is continuously evolving, varying across jurisdictions. Nevertheless, the general trend is that regulation is maturing and tries to integrate crypto-assets. For example, in Europe, the MICA Regulation sets directives for different players in the crypto-space. It also classifies tokens in different categories and, as such, these tokens will have to follow specific requirements and might be subject to specific, new or existing regulation. As a result, more and more players in capital markets are seeking licences to offer crypto-related services. It is expected that regulation will continue to evolve positively in the short term.

2. Considering AI's prowess, where can AI be a part of the blockchain community to validate transactions?
A. Transaction validation on the blockchain is carried out using binary cryptographic tools, impervious to AI influence. However, in scenarios involving transactions between the blockchain and a regulated centralized entity, we could imagine that the centralized player uses AI to help in the detection of transactions having a higher risk from a compliance perspective. It is important to note that this is independent of the transaction on the blockchain.

3. Can AI manipulate the blockchain's code to authenticate the transactions?
A. No, the code is deterministic and relies on secure cryptographic principles. As we will learn in the Blockchain for Financial Markets course, only quantum computers might affect a limited number of security aspects. However, solutions to maintain blockchain security in a quantum-enabled world already exist and can be readily implemented. Therefore, there are currently no realistic threats or foreseeable challenges regarding transaction authentication.

4. How are the transaction authentication community members selected?
A. The members responsible for consolidating and validating transactions depend on the consensus mechanism employed by the blockchain. In the typical proof-of-work consensus mechanism, anyone can become a member tasked with authenticating transactions. Throughout the Blockchain for Financial Markets course, we will distinguish between 'consolidating nodes' and 'validating nodes,' with each serving as a check on the other. In the context of a proof-of-stake consensus mechanism, multiple selection processes are in place, and members are often randomly chosen. The amount of stake a member holds may influence their chances of selection.

5. In digital real estate, would blockchain stable coins will be the currency?
A. Digital real estate (often represented by NFTs in a metaverse) might be purchased with stable coins or other tokens. It is important to realize here that stable-coins are only one type of token and that there are many ways of expressing value. In the mainstream world, we often use fiat currency to express the value of something. However, the value of one asset can also be expressed in any other asset. In the blockchain / web3 space, tokens can easily be swapped for other tokens based on the market value of both tokens. With that said, within a blockchain application, such as digital real estate, one token might be required to access a specific asset or service. Access to this token itself may be possible, or not possible, through different means depending on the token design. As such, a token might be easily swappable for other tokens or be granted and not transferable to a person who fulfils certain conditions. In short, everything is possible and depends on what we want to achieve.

Thank you to those attendees who submitted their questions.

LFS offers Blockchain for Financial Markets programme with Jean-Luc Verhelst in the London classroom and remotely in London, New York, and Singapore time zones.

To find out more, click on the location links above or contact us at info@londonfs.com

Are you interested in running our public courses in-house? Contact our in-house team to discuss further.