The Blockchain by a Quant

Yesterday by the night I was still busy at work and thinking about future projects. And so one of my tasks was to check the video I present here today of an interesting Webinar. The Webinar was by the professional and distinguished Quantitative Finance expert Yves Hilpish. Yves is really good at what he does, which is cutting-edge Computational Finance with the dynamically typed, high-level software programming language Python. Dr. Yves Hilpish has also written several books on the subject of modeling complex financial derivatives with Python, all published by the good professional academic/business publisher Wiley.

This Webinar is presented at the landing page of Dr. Hilpish, The Python Quants, where he also described all the events he is involved with, and his next editorial project to be published again by Wiley, again on the topic of financial derivatives.

This Blog has already published on the topic of the Blockchain, with a distributed computing and consensus algorithms perspective, but in this talk we are presented with the more bare metal computer science primitives perspective, with the added advantage of being a layer above, because the Python language permits only the connection with cryptographic primitives, and isn’t suitable for the more lower-level, harder computations. Even so its Struct function connects seamlessly with C primitives, as shown in this talk.

Anyway I would point out that Dr. Yves Hilpish considers the technologies around Blockchain with these more bare metal computer science to be important to learn and understand from a Quant (the short designation for Quantitative Finance) perspective, and he talks in succession about Hash Functions and the Hashing procedure (the important property of many inputs only with one output, which permits immutability and the framework necessary for avoiding double spends and/or malicious attacks), how Encryption (public key cryptography and digital signatures) is done within the Blockchain framework, the mining algorithms (Proof of Work) to mine the first application of the Blockchain which was the cryptocurrency Bitcoin.

Today, after seven years of the first Bitcoin to be mined there are plenty other cryptocurrencies such as Ether or Zcash, developments such as Ethereum and Smart Contracts, sitting on top of the Blockchain network utilizing a different mining and consensus algorithm framework (Proof of Stake). In the end the Blockchain  is just the open source computable distributed ledger and dynamic database that permits these innovative  applications to flourish.

I hope this video to help to further educate everyone about the Blockchain, specially anyone with a Finance and Computational Finance background:


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