Tepper Blockchain Initiative
Blockchain technologies and cryptocurrencies are rapidly changing financial and industrial markets and decentralizing interactions between consumers, firms, and policymakers. The Tepper School of Business at Carnegie Mellon University established the Tepper Blockchain Initiative to foster innovations in the design, use, ethics, and regulation of decentralized, blockchain-based technologies. The initiative serves as a hub for all of the Tepper School's existing thought leadership concerning blockchain technologies, including active research topics and use cases, educational content, and industry partnerships. In addition, the initiative seeks to further promote innovative blockchain and cryptocurrency activities by faculty, students, alumni, policymakers, and industry leaders.
Decentralizing Trust: Blockchain's Radical Potential
The moderated panel from the inaugural INTERSECT@CMU conference featured business leaders who are influencing the adoption of blockchain applications in finance, supply chains, and healthcare, and focused on the potentially transformative nature of decentralizing modes of exchange both of data and assets.
Faculty Lecture at Diversity Weekend
Senior Associate Dean of Education and Professor of Economics Sevin Yeltekin presented a faculty lecture on bitcoin, cryptocurrencies, and the macroeconomy during Diversity Weekend 2018.
Leveraging blockchain requires understanding the technology integrated with business application. Executive Education at the Tepper School of Business at Carnegie Mellon University works with leaders at all levels to translate the emerging research from the Blockchain Initiative into actionable business value. Executive Education draws upon all of the colleges at Carnegie Mellon University to deliver executive education modules and collaboration forums to better understand the technology, use cases and changes in the competitive landscape, and identify innovations to add value to organizations. This educational effort will accelerate the acceptance and use of blockchain technology and create a venue for sharing across organizations and industries.
Case Competition/Testbed: CMU Coin
The PNC Center for Financial Services Innovation is supporting an effort to create a cryptocurrency testbed that can be used by researchers. To this end, the center is supporting creation of a CMU-focused cryptocurrency: CMU Coin. The goal is to create a cryptocurrency that is secure, legal, focused on privacy rather than anonymity, has greener alternatives to the proof of work, and ensures continued decentralization as the coin matures.
Course: FinTech (MBA)
This course focuses on innovation in financial services facilitated by technology and the new business models that are disrupting and transforming the financial industry. By the end of the course, students will understand technologies underlying cryptocurrencies and blockchains; how smart contracts, distributed applications, and ICOs work; the impact of blockchain-related technologies on the financial services sector; and the technologies behind digital and mobile payments, and their impact on banking. They will also understand peer-to-peer lending and how it impacts financial intermediaries, how machine learning can be used in fintech and insurtech, and the investment and operations models of robo advising. Instructors: Bryan Routledge, Param Singh
Course: FinTech (Undergraduate)
The course complements the domain knowledge from finance courses with knowledge of financial technologies and applications. By the end of the course, students will understand technologies underlying cryptocurrencies and blockchains; how smart contracts, distributed applications, and ICOs work; the impact of blockchain-related technologies on financial services sector; and how machine learning and AI can be used in finance. Students will gain hands-on experience with technologies such as TradeStation and Ethereum. Using TradeStation, students will learn algorithmic trading strategies, the fundamentals of how to design such strategies, how to automate them, how to back test them, how to optimize them, and how to execute them. In this course, students will develop and execute trading strategies on a real stock exchange. Instructor: Nikhil Mahlik
Course: Financial Crisis and Risk (Undergraduate)
This course provides an in-depth examination of the causes of financial crises as well as what governments can do to prevent them or at least reduce their cost. The course is designed to provide an understanding of individual attitudes toward risk and individual decision-making about savings and investment under uncertainty, and to use this understanding to evaluate the various economic roles played by financial institutions in helping individuals manage risk, especially those roles which may lead to economic instability and crises. In addition, the course covers bubbles and swindles; the role of information in banking in normal times and in bank runs; and the extensive history of attempts to improve regulation so as to reduce the frequency and cost of crises. The course concludes with an in-depth discussion of how recent technological innovations — blockchain technologies and their associated cryptocurrencies — may reshape existing financial markets. Instructor: Ariel Zetlin-Jones
Course: Global Economics (MBA)
This class uses the tools of open economy macroeconomics to explore how business impacts and is impacted by the economic environment in which it operates. It equips students with the analytical skills to analyze economic data and understand its implications for economic growth, business cycles, employment and unemployment, inflation and deflation, monetary policy and interest rates, international trade and capital flows, and foreign exchange rates. The tools and approach developed in the course are deployed to analyze key trends that are reshaping and disrupting the global economy, including the impact of the digital economy on production, of automation on the displacement of workers, and of cryptocurrencies on financial markets. Instructor: Sevin Yeltekin
Associate Professor of Economics
Ariel Zetlin-Jones' research interests in cryptocurrency and blockchain include the design of stable-price cryptocurrencies, the microstructure of cryptocurrency exchanges, and the governance of blockchain technologies.
- Introduction of cryptocurrencies is provided in Financial Crises and Risk
Research Coverage & Consulting
- Currency Stability Using Blockchain Technology:
- Conference talk — SED 2018 (Mexico City, June 2018)
- Seminar (Federal Reserve Bank of Philadelphia, July 2018)
- Conference talk — Economics of Cryptocurrencies and Blockchain Technologies (Federal Reserve Bank of St. Louis, August 2018)
- Monetary advisor to Sweetbridge, a startup company using blockchain technologies to improve supply chain management
Professor of Economics, Senior Associate Dean of Education
Sevin Yeltekin's research involves the design of sustainable monetary and fiscal policies in environments where policymakers and the public have informational asymmetry. She is interested in examining how cryptocurrencies can alter the tools and impact of centralized monetary policy and how cryptocurrencies can affect the price of liquidity in markets and inflation overall. Yeltekin leads the Tepper Blockchain Initiative.
- Introduction of cryptocurrencies is provided in Financial Crises and Risk
Pamela R. and Kenneth B. Dunn Professor of Finance
Chester Spatt's current research interest focuses upon the foundations of financial regulation as well as the regulation of financial markets and instruments.
- Lecture: “FinTech and Financial Regulation” (Santiago, May 2018)
- Lecture: “FinTech and Financial Regulation” (Buenos Aires, May 2018)
- Panelist: “Regulation and Innovation” — National Association of Insurance Commissioners (Boston, August 2018)
- Discussant: “BlockChain and the Future of Optimal Financing Contracts” — European Finance Association (Warsaw, August 2018)
Carnegie Bosch Associate Professor of Business Technologies, Director of the PNC Center for Financial Services Innovation
Param Singh is interested in technical and economic aspects of cryptocurrency, blockchain, and smart contracts. He is co-leading an initiative at CMU to develop a cryptocurrency testbed (CMU Coin) to support research and education in this space.
- MBA class on FinTech, co-taught with Bryan Routledge.
Associate Professor of Finance
Bryan Routledge's recent research focuses on smart contracting in finance. One of his latest projects looks at price stability mechanisms for cryptocurrency coins.
- MBA class on FinTech, co-taught with Param Singh
- Alumni webinar
- Keynote address at Vanguard "Innovation Day"
Ph.D. student in Business Technologies
Nikhil Malik's research interest is in comparing public vs. enterprise blockchain platforms, protocols vs. applications, and numerous tokenomic schemes. He also studies tradeoffs for participants in this ecosystem: users, investors, and traditional intermediaries.
- Undergraduate Business class on FinTech
Assistant Professor of Accounting
Pietro Bonaldi is interested in analyzing the feasibility, welfare implications, and potential for disruption of eventual widespread adoption of blockchain technology, and more generally, cryptography in accounting, specifically in the audit industry.