CPSC 3640: Decentralized Payments, Contracts, and Finance for Humans and AI

2026 Fall Edition

๐Ÿ“ข Announcements

  • CPSC 3640 will be offered in Fall 2026. The course website is now live with the schedule and logistics.

โ„น๏ธ Information

Time/location

  • MW 11:35am-12:50pm
  • Location: TBA

Platforms

Instructor

Prof. Fan Zhang

Teaching Assistant

Teaching assistant
  • Teaching Assistance: TBA

๐Ÿ“– Course Description

Blockchains provide a platform for humans to coordinate economic activity without relying on centralized intermediaries. Emerging standards such as EIP-8004 aim to extend these capabilities to autonomous agents, enabling AI systems to transact and coordinate through shared protocols. This introductory course explores such decentralized applications, including tokens, exchanges, lending protocols, stablecoins, oracles, decentralized governance, and emerging standards for AI coordination and interoperability. Students will learn system architecture, security intuition, and how to build and debug decentralized applications.

Prerequisites

Required: CPSC 201 and 202 (or equivalent), and a basic understanding of computer systems and networks.

Course Units (click for details)

This course is organized into four units that build progressively from foundational concepts to advanced applications at the intersection of AI and blockchain.

Unit 1 โ€” Foundation establishes the intellectual and technical bedrock of the course. Students learn why decentralized systems are needed by tracing the history of digital money, examining the failures of trusted-party approaches, and understanding core cryptographic primitives. The unit introduces three paradigms for building trusted computers โ€” Trusted Execution Environments (TEEs), cryptographic proofs, and State Machine Replication โ€” which recur throughout the course. A unifying framework positions both crypto and AI as middleware layers that enable trustworthy, decentralized decision-making pipelines.

Unit 2 โ€” DeFi for Humans covers the major building blocks of the decentralized finance ecosystem as it exists today. Beginning with Bitcoin’s breakthrough in permissionless consensus and continuing through Ethereum and smart contract programming in Solidity, students learn how tokens, stablecoins, decentralized exchanges (DEXes), automated market makers (AMMs), oracles, lending protocols, and cross-chain interoperability work under the hood. The unit concludes with an in-depth treatment of security: smart contract bugs, Miner/Maximal Extractable Value (MEV), privacy risks, and the fundamental tension between usability and security in key management.

Unit 3 โ€” DeFi/Crypto for AI examines how blockchain infrastructure can serve autonomous AI agents. Students explore emerging payment protocols designed for agent-to-agent transactions, the role of TEEs in providing verifiable, confidential computation for AI workloads, and how decentralized infrastructure can underpin reliable AI pipelines. This unit engages directly with open research questions around agent identity, economic coordination, and trust without central authorities.

Unit 4 โ€” AI for Crypto reverses the lens, asking how AI can improve the design, analysis, and usability of blockchain systems. Topics include using language models and formal methods for smart contract auditing and bug detection, AI-assisted protocol design, and AI as an interface layer that bridges blockchain systems with the physical world.

Grading

Assessment Weight Details
Class Participation 10% Ongoing throughout the semester; includes in-class discussion and engagement
Homework & Labs 40% ~6 problem sets and hands-on Solidity labs, distributed roughly every 1โ€“2 weeks
Group Presentation 30% Students form a team to investigate a technical or societal topic related to the course and present to the class (~20 minutes), scheduled during the final weeks of the semester
Final Exam 20% In-class final exam on fundamental concepts across all four units

๐Ÿ—“๏ธ Lecture Schedule

# Date Title
Section I: Foundation
1
Course intro: from digital money and asset to trusted computer for AI
2
History of digital money, and background on key cryptographic concepts
3
Nakamoto broke new ground in 2009: Bitcoin
4
Trusted computers and three ways to build one
Section II: DeFi for Humans (and its risks)
5
Ethereum and smart contracts
6
Tokens & stablecoins
7
DEX and Automated Market Makers (AMMs)
8
Oracles
9
Scaling up performance
10
DeFi risk: bugs
11
DeFi risk: MEV
12
PBS and their problems
13
DeFi risk: bridges
14
DeFi risk: privacy
15
DeFi risk: usability and security tension
Section III: DeFi/Crypto for AI
16
Payment protocols for agents (x402 and co)
17
Introduction to TEEs & TEE x AI
18
TEE x AI II
19
Securing the plumbing of AI (Props)
20
Decentralized Infra for AI
21
Coordination (EIP-8004)
Section IV: AI for Crypto
22
AI for design of blockchain protocols and applications
23
AI for enhancing interaction with real world
24
Trading algos, and their privacy problems
25
TBD
Final exam (in class)
26
In-class Final