25400 · Financial Literacy
Fintech, Crypto & Quiz 2 Wrap
Weeks 11-12 close the subject. Week 11 surveys how FinTech disrupts financial services (digital payments, peer-to-peer lending, robo-advisory) and how blockchain — decentralised, transparent, immutable and secure — underpins crypto assets, contrasting centralised finance (CeFi) with decentralised finance (DeFi). This is conceptual material (no calculations) that frames the Week-11 individual analyst presentation. Week 12 is the second timed, GenAI-free in-class quiz, so the chapter also consolidates the later topics for review.
What this chapter covers
- 01FinTech and the disruption of financial services: digital payments, P2P lending, robo-advisory
- 02Blockchain as a distributed ledger enabling peer-to-peer transactions without central intermediaries
- 03The four blockchain features: decentralisation, transparency, immutability, security
- 04Cryptocurrencies vs traditional (fiat) currencies
- 05CeFi (intermediaries: banks, exchanges) vs DeFi (on-chain products: DEXs, liquidity pools, lending)
- 06Benefits (efficiency, financial inclusion, transparency, innovation) vs risks (volatility, regulation, scalability/energy, security)
- 07Future outlook: institutional adoption and Central Bank Digital Currencies (CBDCs)
- 08Consolidated review for the Week-12 in-class Quiz 2 and framing for the analyst presentation
Applied: analysing a crypto-payments proposal for the analyst presentation
- +1(a) The four blockchain features are decentralisation (no single controlling entity), transparency (transactions are publicly recorded and verifiable), immutability (recorded transactions cannot be altered or deleted) and security (cryptography prevents fraud and tampering).
- +1(b) A public-blockchain settlement with no central intermediary is a DeFi (decentralised finance) model; if the same payments were routed through a bank or a centralised exchange, it would be CeFi (centralised finance).
- +1(c) A benefit to flag: efficiency and cost reduction — removing intermediaries can make cross-border payments cheaper and faster, and it can extend financial inclusion to the unbanked via mobile access.
- +1(d) A risk to flag: price volatility of crypto assets, plus regulatory uncertainty and security risks in the surrounding ecosystem (for example exchange hacks). A balanced analyst weighs these against the efficiency benefit.
Key terms
- FinTech
- Technology that reshapes and disrupts financial services, spanning digital payments, peer-to-peer lending, robo-advisory and blockchain applications, often by reducing reliance on traditional intermediaries.
- Blockchain
- A distributed ledger that stores data across a network of nodes in a secure, transparent and immutable way, enabling peer-to-peer transactions without a central intermediary. Its four defining features are decentralisation, transparency, immutability and security.
- Cryptocurrency
- A blockchain-based, decentralised digital asset that is not issued or backed by a central authority, in contrast to government-issued fiat currency. It changes how people transact, invest and store value.
- CeFi (Centralised Finance)
- Financial services that rely on intermediaries such as banks, payment processors and centralised exchanges, which custody funds and enforce rules on users' behalf.
- DeFi (Decentralised Finance)
- Blockchain-based financial products that operate without central intermediaries — decentralised exchanges (DEXs), liquidity pools and on-chain lending and borrowing — with rules enforced by code.
- CBDC
- A Central Bank Digital Currency: a digital form of fiat money issued by a central bank, aiming to combine blockchain-style efficiency with the stability and backing of the traditional currency.
Fintech, Crypto & Quiz 2 Wrap FAQ
What are the four features of blockchain I should know?
Decentralisation (no single entity controls the network), transparency (transactions are publicly recorded and verifiable), immutability (recorded transactions cannot be changed or deleted) and security (cryptographic techniques prevent fraud and tampering). Naming these precisely is the backbone of most conceptual questions on this topic.
What is the difference between CeFi and DeFi?
CeFi (centralised finance) delivers financial services through intermediaries — banks, payment processors, centralised exchanges — that hold funds and set the rules. DeFi (decentralised finance) provides equivalent products directly on a blockchain with no central intermediary, using tools like decentralised exchanges, liquidity pools and on-chain lending. The presence or absence of a trusted intermediary is the dividing line.
Does this topic involve calculations?
No — Weeks 11-12 are conceptual. Questions ask you to define and contrast (blockchain features, CeFi vs DeFi, benefits vs risks) and to apply the framework to a scenario, as in the analyst presentation. Marks come from precise vocabulary and balanced judgement rather than arithmetic.
What does Quiz 2 cover?
Quiz 2 is the Week-12 in-class, timed and GenAI-free quiz covering the later topics of the subject (financial-statement analysis, cost of capital and capital budgeting, investing and valuation, startups/ESG and fintech/crypto). Confirm the exact coverage and weight on Canvas, and revise both the calculations from Weeks 7-9 and the concepts from Weeks 10-11.
Assessment move
Because this material is conceptual, revise it as precise definitions and contrasts rather than formulas: be able to list the four blockchain features, separate CeFi from DeFi by the intermediary test, and weigh benefits (efficiency, inclusion, transparency, innovation) against risks (volatility, regulation, scalability/energy, security). Use exactly this vocabulary — the marks reward precision. For the individual analyst presentation, practise pairing each benefit with a risk to show balanced judgement. Then step back for Quiz 2: it is timed and GenAI-free and spans the later weeks, so rehearse the Weeks 7-9 calculations as well as these concepts. Ask Sia to quiz you on the definitions and to critique a mock analyst take.
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