FTEC 4004
E-payment Systems and Cryptocurrency Technologies

The course introduces e-payment systems and cryptocurrency technologies. Topics to be covered include:

• Introduction to Money and Banking;

• Automated Clearing and Settlement Systems;

• E-payment Security/ Privacy and related protocols

• Credit cards

• Peer-to-peer payment services;

• Stored Value Facilities (SVF), Smartcard technologies ;

• Digital Wallets and Mobile payment systems;

• Micropayments and Ecash

• Cryptocurrency, Block-chain technologies and their applications;

• The Future of Money and Technology.

Learning Outcome: Upon completing the class, the students should:

1. Understand the working principles and engineering trade-offs in the design and implementation of various e-payment systems and cryptocurrency technologies ;

2. Have the ability to analyze and evaluate the applicability and limitations of different e-payment and cryptocurrency-based solutions under different deployment scenarios.

Lecture time and venue:

• MON 10:30 - 12:15, ERB 703
• THU 15:30 - 16:15, ERB 703

Tutorial:

• Time: TUE 13:30 - 14:15 (SHB833)

TA Office Hours: (If you want to ask TAs for help beyond those periods, please send an email to make reservations with the TA in advance.)

• Shangcheng Shi: Wed 15:00 - 16:00 (SHB803)
• Xianbo Wang: Fri 14:00 - 15:00 (SHB803)

Instructor:

• Prof. Wing Cheong Lau. wclau [at] ie [dot] cuhk [dot] edu [dot] hk
• Office hours: THU 16:30 - 17:30 (SHB 818)

Teaching Assistant:

• Shangcheng Shi ss016 [at] ie [dot] cuhk [dot] edu [dot] hk
• Xianbo Wang xianbo [at] ie [dot] cuhk [dot] edu [dot] hk

Website account:

User: ftec4004

Password: spring2020ftec

·       [StallingsBrown] Computer Security: Principles and Practice (3rd Edition) by William Stallings and Lawrie Brown, Publisher: Prentice Hall, 2014. http://www.amazon.com/Computer-Security-Principles-Practice-3rd/dp/0133773922/ref=sr_1_1?s=books&ie=UTF8&qid=1420531978&sr=1-1&keywords=Computer+Security+Stallings

A close substitution for the above book is: [Stallings 13] William Stallings, Cryptography and Network Security, 6th Edition, Prentice Hall, 2013. (This book provides comprehensive, academic textbook-style writings on the subject including detail technical descriptions of the algorithms and protocols. A bit too terse as an overview; better serves as a technical reference. Early editions of this book would still be useful.)

·       [PaarPelzl10] Understanding Cryptography: A Textbook for Students and Practioners by Christof Paar and Jan Pelzl, Published by Springer, 2010. Fulltext available as ebook via CUHK library.

An excellent introductory text for Cryptography; well-balanced between mathematical vigor and engineering intuition for many modern practical crypto algorithms.

·       [Sherif2016] Mostafa Hashem Sherif, Protocols for Secure Electronic Commerce, 3rd Edition, CRC Press 2016. Fulltext available from CUHK online library for download.

·       [Narayanan2016] Arvind Narayanan, Joesph Bonneau, Edward Felten, Andrew Miller, Steven Goldfeder, Bitcoin and Cryptocurrency Technologies - A Comprehensive Introduction, Princeton University Press, 2016, can be freely downloaded from https://bitcoinbook.cs.princeton.edu

·       [Kaufman02] Charlie Kaufman, Radia Perlman, Mike Spenciner, Network Security, 2nd Editionby Dafydd Stuttard and Marcus Pinto, Published by Prentice Hall, 2002. (The authors are all well-known designers/architects of key security protocols/systems widely deployed in practice. The book provides excellent insights on the technical details and rationale behind the design of the protocols/algorithms. The technical depth may overwhelm casual, non-technical readers though.)

·       [Antonopoulos17] Andreas M. Antonopoulos, Mastering Bitcoin, 2nd Edition, Published by O'Reilly, July 2017, full-text freely available at:  https://github.com/bitcoinbook/bitcoinbook

·       [Antonopoulos18] Andreas Antonopoulos, Gavin Wood, Mastering Ethereum - Building Smart Contracts and DApps, Published by O'Reilly, 2018 (available from https://github.com/ethereumbook/ethereumbook/blob/develop/book.asciidoc ).

·       [Hill2018] John Hill, Fintech and the Remaking of Financial Institutions, Academic Press, 2018.

·       [McKinsey2018] McKinsey&Company, “Global Payments 2018: a dynamic industry continues to break new ground”, Oct 2018.

·       [Sidelov2017] Pavlo Sidelov, The World Of Digital Payments: Practical Course (FinTech) Kindle Edition, 2017.

·       [Benson2017] Carol Coye Benson, Scott Loftesness, Russ Jones, Payments Systems in the U.S. - Third Edition: A Guide for the Payments Professional 3rd ed. Edition, Glenbrook Partners, 2017.

·       [King2019] Brett King, Bank 4.0: Banking Everywhere, Never at a Bank 1st Edition, Wiley, ISBN-13: 978-1119506508, ISBN-10: 1119506506, 2019.

·       [Chishti2020] The PayTech Book: The Payment Technology Handbook for Investors, Entrepreneurs, and FinTech Visionaries 1st Edition by Susanne Chishti (Editor), Tony Craddock (Editor), Robert Courtneidge (Editor), Markos Zachariadis (Editor), Publisher: Wiley; 1 edition (January 7, 2020) ISBN-10: 1119551919, ISBN-13: 978-1119551911

·       [Morse2019] Electronic Payment Systems: Law and Emerging Technologies Paperback – August 7, 2019 by Edward A. Morse (Author)

·       [Téllez2017] ]Jesús Téllez, Sherali Zeadally, Mobile Payment Systems: Secure Network Architectures and Protocols (Computer Communications and Networks), 1st ed. 2017 Edition, Springer.

·       [Kou2003] Weidong Kou, Payment Technologies for E-Commerce, 1st Edition, Springer, 2003.

·       [Sherif2016] Mostafa Hashem Sherif, Protocols for Secure Electronic Commerce, 3rd Edition, CRC Press 2016.

·       [O'Mahony2001] Donal O'Mahony, Michael Peirce, Hitesh Tewari, Electronic Payment Systems for E-Commerce, 2nd Edition, Artech House, 2001.

·       [CMPIRedbook2012] "Payment, clearing and settlement systems in CPSS countries," published by the CMPI Red book series published by the BIS Committee on Payment and Settlement Systems, Vol. 2, Nov. 2012, freely available at https://www.bis.org/list/cpmi/index.htm

·       [Pandy2016] “Understanding the Role of Host Card Emulation in Mobile Wallets,” Susan Pandy and Marianne Crowe, Federal Reserve Bank of Boston Payment Strategies, and Brian Russell, Giesecke & Devrient, May 2016.

·       [Crowe2015] “Is Payment Tokenization Ready for Primetime ?”, M. Crowe et  al, June 2015.

·       [EY2015] “Mobile Payment – War of Wallets,” EY analysis and interviews, Nov 2015.

·       [ENISA2016 ] “Security of Mobile Payments and Digital Wallets,” ENISA, Dec 2016.

·       [HCE2014] Host Card Emulation (HCE) 101, A Secure Technology Alliance Mobile & NFC Council White Paper, Aug 2014.

·       [SmartcardAlliance2013] “The Changing U.S. Payments Landscape: Impact on Payment Transactions at Physical Stores,” a Smart Card Alliance white paper, Nov 2013.

·       [HKMAnfc2013] NFC Mobile Payment, HKMA Financial Infrastructure Dept, HKMA Quarterly Bulletin, Dec 2013

·       [HKMAcontactless2012] Development of Contactless Mobile Payment Services, HKMA Financial Infrastructure Dept, HKMA Quarterly Bulletin, Sept 2012.

·       [Wood2014] “The Web 3.0 proposal ”, Gavin Wood, Apr 2014. (availabld from https://gavwood.com/dappsweb3.html, https://gavwood.com/web3lt.html, and https://medium.com/@gavofyork/why-we-need-web-3-0-5da4f2bf95ab)

·       [BitcoinPaper] Satoshi Nakamoto, “Bitcoin: A Peer-to-Peer Electronic Cash System,” Oct 2008, https://bitcoin.org/bitcoin.pdf

·       [EthereumWP] The Ethereum White Paper:  "A Next-Generation Smart Contract and Decentralized Application Platform," https://github.com/ethereum/wiki/wiki/White-Paper ;  An introductory paper to Ethereum, introduced before launch, which is maintained.

·       [DASP-Top10] Decentralized Application Security Project Top 10 of 2018, https://dasp.co/index.html

·       [SWCRegistry ] SWC Registry: Smart Contract Weakness Classification and Test Cases, https://swcregistry.io

·       [ConsenSys2019] “Ethereum Smart Contract Security Best Practices”, ConsenSys Diligence,  Jan 2019, https://consensys.github.io/smart-contract-best-practices/

·       [Kasireddy2017] "How does Ethereum work, anyway", Preethi Kasireddy,  Sept 13, 2017: https://www.preethikasireddy.com/post/how-does-ethereum-work-anyway#Story

http://mobitec.ie.cuhk.edu.hk/StaffStudentExpectations.pdf

You are expected to do your own work and acknowledge the use of anyone else's words or ideas. You MUST put down in your submitted work the names of people with whom you have had discussions.

Refer to http://www.cuhk.edu.hk/policy/academichonesty for details

When scholastic dishonesty is suspected, the matter will be turned over to the University authority for action.

You MUST include the following signed statement in all of your submitted homework, project assignments and examinations. Submission without a signed statement will not be graded.

I declare that the assignment here submitted is original except for source material explicitly acknowledged, and that the same or related material has not been previously submitted for another course. I also acknowledge that I am aware of University policy and regulations on honesty in academic work, and of the disciplinary guidelines and procedures applicable to breaches of such policy and regulations, as contained in the website http://www.cuhk.edu.hk/policy/academichonesty/.