Blockchain: What is It and Why are We Teaching It?

By Helene Kim, Menlo College Trustee and Adjunct Professor of Management

Blockchain and cryptocurrency are among the fastest growing industries in the world today, not only here in Silicon Valley but also in Europe, Asia and other regions of the world. Venture capital investments in these sectors totaled over $30 billion in 2021. Leading companies such as Visa, PayPal, Accenture, Deloitte, Goldman Sachs, Nike, Facebook and others are making major commitments to blockchain industries.

As our students enter their professional careers, they will be stepping into a business environment revolutionized by blockchain. But what are blockchains and cryptocurrencies (which use blockchain platforms)? Is blockchain a techie fad that provides a solution to a problem we do not have? Or does it provide real answers for the business models of the future?

We are fortunate to have a legal and blockchain expert, Helene Kim, to answer these questions. She received her J.D. from Harvard Law School, and practiced corporate law in San Francisco and Asia for many years. She first became involved with blockchain in 2017 as a strategic advisor to one of South Korea’s largest conglomerates.

Professor Kim has also taught at UC Berkeley Law School, and served as the Executive Director of its international programs. She helped to establish and secure $1 million seed funding for Stanford Engineering School’s Digital Currency Initiative, where she served as Associate Director of Research from 2020-2021.

Please explain what blockchain is, and what subjects are covered in your blockchain course.

Blockchain is a foundational technology developed in 2008 by the Bitcoin developer community, but new ways to use blockchain are exploding across industries as diverse as supply chain management and investment banking. While cryptocurrencies have received a lot of attention, I teach the more fundamental concepts of blockchain and how it provides the building blocks for new business models.

A blockchain securely synchronizes the same information across a distributed ledger, using a decentralized network of computers. Each blockchain represents a business ecosystem that builds decentralized applications—called DApps—to operate on these distributed ledgers. My students learn how to evaluate and compare various blockchain networks and their DApp ecosystems.

DApps rely on Smart Contracts, which are sets of rules stored on the blockchain and executed automatically. Smart Contracts create, transfer and store two types of digital assets–cryptocurrencies and non-fungible tokens (NFTs). This tokenization process is what gives rise to a host of new business opportunities, i.e., in domains ranging from sports management and real estate to wine distribution and art collection.

I teach my course from the standpoint of business model innovation. Developing professional skills such as analyzing business models and applying blockchain and Web 3.0 concepts to “real world” use cases is a large part of my classroom approach.

Block Ledger Distribution Transaction

block chain

What is one notable case study from your class?

One inherent challenge of teaching an academic course on blockchain is the constant need to adapt classroom materials to the high rate of industry change. For example, last fall semester, my students conducted projects on Facebook’s Diem strategy, aimed at the $170 billion global stablecoin market (Diem’s stablecoin was pegged to the U.S. dollar). Less than one month later, in late October 2021, the U.S. Treasury Dept. announced new guidelines that make it virtually impossible for any entities other than licensed commercial banks to issue stablecoins.

Within days following that U.S. Treasury announcement, Facebook re-branded itself as Meta (its new official name); and instead, pivoted its corporate strategy to the metaverse, i.e., another aspect of blockchain. These industry changes are happening at lightning speed, and demonstrate the need to be agile and understand global regulatory trends to avoid business failure risks.

What inspired you to teach this blockchain course at Menlo College?

The global nature of the blockchain industry provides excellent career opportunities for our business undergraduates, especially international students. Blockchain is also having significant impact on the professional sports world through NFT branding strategies, which creates great opportunities for our student-athlete community. I have brought guest speakers from high-profile blockchain startups such as Anchorage Digital (which raised $550 million in venture funding), and a co-founder of Blockdaemon (which raised $400 million) to my classroom for guest lectures.

How did you and your students go about establishing the Blockchain Club?

I suggested to my students last fall semester to establish a Blockchain Club to provide hands-on experience in working with blockchain technologies. Consequently, my students worked with me over the winter holidays to establish the new Menlo College Blockchain Club (www.blockchain.menlo.edu), for which I serve as the faculty advisor. We have many activities underway, including the NFT Minting Day that our Blockchain Club hosted in early May, that allowed the Menlo community a hands-on opportunity to create their own NFTs.

How is Menlo College leading the way in blockchain curriculum?

As a small close-knit college, we have the ability to get projects implemented, which is important in a high rate of change industry like blockchain. Our agility and speed of execution is the key advantage that our Menlo community has over larger universities. I am confident that, in a few years’ time, our Menlo blockchain startup initiatives will make a name for our College in Silicon Valley.