Activity 1 (c)
Activities: Comparative Analysis: Evolution and Differences in Financial Systems
Instructions to Learners:
Please complete the following activity based on your understanding of the content in this topic:
1. Choose one of the following digital currency milestones to focus on:
• The launch of Bitcoin (2009)
• The introduction of Ethereum and smart contracts (2015)
• The rise of Central Bank Digital Currencies (CBDCs)
2. Analyse its impact on the financial system by answering these questions:
i. What key problem(s) in traditional finance did this innovation aim to solve?
ii. How does it differ from traditional financial systems in terms of structure, control, and security?
iii. What are the potential advantages and disadvantages for users and institutions?
3. Submit a short-written post (150–200 words) in the forum, using examples from the content (e.g., Bitcoin’s proof-of-work process, decentralisation, etc.).
4. Reply to at least one peer’s post, comparing the historical point or innovation they analysed with your own.