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This 8-hour course seeks to equip private bankers with a solid understanding of blockchain and smart contracts, as well as the revolutionary movement of Decentralised Finance (DeFi) and the potential impacts they could have on the financial industry.

Target Audience

  • Assistant Relationship Managers, Relationship Managers, and Team Leads in Private Banks & Wealth Management
  • Covered Persons under the Private Banking Code of Conduct

Course Objectives

  • Understand blockchain technology and consensus mechanisms
  • Identify key blockchain platforms and use cases
  • Define Smart Contracts and their structure
  • Understand contract execution and lifecycle
  • Classify Smart Contract types and technologies
  • Analyse real-world implementations of blockchain and Smart Contracts
  • Identify Smart Contract’s risks and vulnerabilities
  • Apply security best practices to deal with the risks
  • Understand DeFi evolution and foundational principles
  • Explain DeFi technical architecture
  • Classify DeFi platform categories
  • Understand operational mechanics of DeFi
  • Assess Smart Contract and DeFi risks
  • Identify business opportunities of Defi and Smart Contracts
  • Apply concepts to specific financial workplace contexts
  • Develop implementation strategies

Course Outline

Part 1: Blockchain & Smart Contract Fundamentals

Blockchain Basics

  • Blockchain definition and distributed ledger principles
  • Cryptographic foundations (hashing, digital signatures)
  • Consensus mechanisms overview (PoW, PoS)
  • Major platforms: Bitcoin, Ethereum, enterprise blockchains

Smart Contract Introduction

  • Smart Contract definition and characteristics
  • Ethereum Virtual Machine (EVM) basics
  • Contract components: code, data, execution
  • Gas fees and transaction mechanics

Live Smart Contract code walkthrough using Remix IDE

Part 2: Smart Contract Applications & Security

Smart Contract Types & Use Cases

  • Contract types: payment, escrow, multi-signature
  • Industry applications such as:
    • Tokenisation (Bonds, financial instruments)
    • Insurance (parametric insurance automation)
    • Real estate (property transfer automation)
    • Oracle integration and external data feeds

Security & Best Practices

  • Common vulnerabilities: re-entrancy attacks, integer overflow
  • Security audit processes and tools
  • Best practices: code reviews, testing, formal verification
  • Compliance frameworks and industry standards
  • Vulnerability identification exercise using real exploit examples

Part 3: Building Blocks of DeFi

Stablecoins

  • Types of stablecoins and collaterals
  • Failure of UST
  • Stablecoin frameworks
  • Governance tokens and DAOs

Central Bank Digital Currencies

  • Purpose Bound Money
  • Tokenisation: Real-world asset tokenisation
  • Wholesale CBDC, Retail CBDC

Part 4: Decentralised Finance (DeFi) Deep Dive

DeFi Origins & Infrastructure

  • Traditional finance limitations and DeFi solutions
  • DeFi timeline: 2017–2024 key milestones
  • Technical infrastructure: Smart Contracts, AMMs, liquidity pools
  • Governance tokens and DAOs

DeFi vs Traditional Finance comparison chart creation

DeFi Platforms & Functions

  • Lending/Borrowing: Compound, Aave protocols
  • Exchanges: Uniswap AMM mechanics
  • Derivatives: Synthetix synthetic assets
  • Tokenization: Real-world asset tokenization
  • Hybrid models and traditional finance integration

Assessment – MCQ