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The Palgrave Handbook
of FinTech and Blockchain
Edited by
Maurizio Pompella · Roman Matousek
The Palgrave Handbook of FinTech and Blockchain
 Maurizio Pompella · Roman Matousek
Editors

The Palgrave
Handbook of FinTech
and Blockchain
Editors
Maurizio Pompella Roman Matousek
School of Economics and Management School of Business and Management
University of Siena Queen Mary University of London
Siena, Italy London, UK

ISBN 978-3-030-66432-9 ISBN 978-3-030-66433-6 (eBook)

https://doi.org/10.1007/978-3-030-66433-6

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To our sons Giuseppe and Jan
 Contents

Part I Introduction and Context

1 Introduction 3
Maurizio Pompella and Roman Matousek
2 Fintech and Its Historical Perspective 19
Paul David Richard Griffiths

Part II Fintech & Blockchain: International Overview

3 Financial Engineering and ICT in the Past 53
Rupesh Regmi and Zhuo Zhang
4 Fintech and Blockchain: Contemporary Issues, New
Paradigms, and Disruption 71
Rupesh Regmi, Denesh Rai, and Shradha Khanal
5 The Challenges and Competitiveness of Fintech
Companies in Europe, UK and USA: An Overview 87
Roman Matousek and Dong Xiang
6 Fintech Unicorns 109
David C. Broadstock, Louis T. W. Cheng,
and Jack S. C. Poon
7 Fintech, Bigtech and Banks in India and Africa 171
Tanguy Jacopin
8 Fintech and the Real Economy: Lessons from the Middle
East, North Africa, Afghanistan, and Pakistan (MENAP)
Region 187
Inutu Lukonga

vii
viii CONTENTS

Part III Blockchain Technology and Cyber Risk

1. Data Management and Blockchain Potential

9 Alternative Data in FinTech and Business Intelligence 217
Lin William Cong, Beibei Li, and Qingquan Tony Zhang
10 Bitcoin and Other Blockchain Technologies: Mechanisms,
Governance, and Applications 243
Shoutong Thomas Zhang

2. New Technologies and Financial Markets

11 Blockchain and Structured Products 259
Andria van der Merwe and in memory of Christopher Culp
12 Categories and Functions of Crypto-Tokens 267
Lin William Cong and Yizhou Xiao

3. Cyber Risk and Regulation

13 Emerging Prudential Approaches to Enhance Banks’
Cyber Resilience 285
Juan Carlos Crisanto and Jermy Prenio
14 Platform Development in Blockchains, Risks,
and Regulation 307
Zenu Sharma and Yun Zhu
15 Blockchain and Cyber Risk: Identifying Areas of Cyber
Risk and a Risk-Based Approach for Executives 327
Charla Griffy-Brown, Mark W. S. Chun, Howard A. Miller,
and Demetrios Lazarikos

Part IV Blockchain in Financial Services

1. Financial Intermediation
16 FinTech and Financial Intermediation 347
Panagiota Papadimitri, Menelaos Tasiou,
Minas-Polyvios Tsagkarakis, and Fotios Pasiouras
17 Financial Disintermediation: The Case of Peer-to-Peer
Lending 375
Petr Teplý, Yael Roshwalb, and Michal Polena
18 Fintech and Blockchain Based Innovation: Technology
Driven Business Models and Disruption 403
Maurizio Pompella and Lorenzo Costantino
 CONTENTS ix

2. Digital Currencies and Customer Experience

19 Digital Currencies and Payment Systems: Chinese Way
into Internationalisation of the Renminbi 431
Ewa Dziwok
20 Cryptocurrencies and Other Digital Asset Investments 445
Andria van der Merwe
21 How Does Digital Transformation Improve Customer
Experience? 473
Spencer Li

Part V Fintech in the New Order

22 From Disruption to Post-pandemic Scenario 505
Maurizio Pompella and Lorenzo Costantino

Index 517
 Notes on Contributors

David C. Broadstock is an Assistant Professor of Economics in the School

of Accounting and Finance at The Hong Kong Polytechnic University, where
he also serves as Deputy Director [Economic Sustainability] in the depart-
ment’s Center for Economic Sustainability and Entrepreneurial Research.
David’s research interests cover various aspects of the empirical economics
of energy and the environment, with a particular emphasis on consumer
behavior. David has published in high ranked international journals span-
ning the fields of energy economics, transportation economics, and financial
economics including: The Energy Journal, Energy Economics, Energy Policy,
The Journal of Business Research, Business Strategy and the Environment,
Transport Research Part A, the Journal of International Financial Markets,
Institutions and Money, and The British Accounting Review.
Dr. Louis T. W. Cheng is a Professor of Finance at The Hang Seng Univer-
sity of Hong Kong. Before joining the Hang Seng University of Hong Kong,
he held an appointment as a Professor of Finance at the School of Accounting
and Finance of the Hong Kong Polytechnic University. He is a member of
the Investment Committee of the Hospital Authority Provident Fund Scheme
(Nov 2016–Nov 2018) and a member of the Solicitors Disciplinary Tribunal
Panel (Nov 2013–Oct 2019). He also serves as a member for the Business
Studies Panel (Joint Research Schemes, Feb 2016–Jan 2018) and the Moni-
toring & Assessment Panel of the Local Self-financing Sector (Feb 2015–Aug
2017); both for the Research Grants Council (RGC). He served as a Council
member and a Trustee of the Pension Fund of the Hong Kong Polytechnic
University from January 2011 to February 2013. He also served as a member
of the Advisory Committee on Human Resources Development in the Finan-
cial Services Sector for HKSAR from June 2009 to May 2013. He is currently
a member of the Examination Board of The Institute of Financial Planners of
Hong Kong (IFPHK). He has been a CFPCM certificant since 2001.

xi
xii NOTES ON CONTRIBUTORS

Dr. Cheng graduated with a D.B.A. in Finance from Louisiana Tech Univer-
sity in 1989. Before joining PolyU, he was an Associate Professor of Finance
at Murray State University in Kentucky. He served as a Visiting Scholar at
Hong Kong Baptist University in 1995–1996 and at Southern Illinois Univer-
sity, Carbondale in the Spring of 1997. In the summer of 2003, he served as
the HSBC Fellow of Asian Financial Markets at the University of Exeter in
the UK. Moreover, he has 80 articles published in top finance research jour-
nals including the Journal of Finance. In 2009, he was ranked 108 globally in
terms of financial research in a paper by Heck and Cooley.
Dr. Cheng is an author of Fundamentals of Financial Planning by McGraw-
Hill, 2006, and the lead author of Financial Planning and Wealth Manage-
ment: An International Perspective, also by McGraw-Hill, 2008. Dr. Cheng
served as a project consultant for various organizations including Investor
Education Centre (IEC), Securities and Futures Commission (SFC), Hong
Kong Exchanges (HKEx), Mandatory Provident Fund Scheme Authority
(MPFA), Hong Kong Securities and Investment Institute (HKSI), Charles
Schwab (US), Tai Fook Securities, Value Partners, Fubon Bank, Agricultural
Bank of China, and Bank Consortium Trust Hong Kong.
Mark W. S. Chun is a Department Chair and an Associate Professor at
Pepperdine’s Graziadio Business School. Dr. Chun’s research focuses on the
use of information systems to create value and to transform organizations.
His research interests also include the integration of information systems,
knowledge management, and change management. Dr. Chun’s specialties
also include CIO roles & responsibilities, digital analytics, digital innovation,
business process innovation, smart cities, change management & corporate
strategy. He is an Associate Editor of the Information & Management journal
and the recipient of the Denney Academic Chair.
Lin William Cong is the Rudd Family Professor of Management and Asso-
ciate Professor of Finance at the Johnson Graduate School of Management at
Cornell University SC Johnson College of Business. Prior to joining Cornell,
he was an Assistant Professor of Finance and Ph.D. advisor at the University
of Chicago Booth School of Business and a faculty member at the Center for
East Asian Studies. He was also a Former Doctoral Fellow at the Stanford
Institute for Innovation in Developing Economies, a George Shultz Scholar
at the Stanford Institute for Economic Policy Research, and is currently a
Kauffman Junior Faculty Fellow. Cong advises Fintech organizations such as
the Wall Street Blockchain Alliance (non-profit), was consulted for regulators’
lawsuits against KIN/Kik and Telegram’s TON regarding their ICOs, and is a
member of multiple professional organizations such as the American Economic
Association, European Finance Association, and the Econometric Society.
Cong researches on financial economics, information economics, Fintech
and Economic Big Data, and Entrepreneurship. His academic interests include
financial innovation, mechanism, and information design, blockchains, cryp-
tocurrencies, real options, China’s economy and financial system, RegTech,
 NOTES ON CONTRIBUTORS xiii

machine learning, AI, and alternative data. His research has been published in
top academic journals and has been recognized with a number of accolades
such as the Kauffman Junior Faculty Fellowship, AAM-CAMRI-CFA Insti-
tute Prize in Asset Management, the CME Best paper Award, Shmuel Kandel
Award in Financial Economics, and Finance Theory Group Paper Award. He
has also been invited to speak and teach at hundreds of world-renowned
universities, venture funds, technology firms, investment and trading shops,
and government agencies such as IMF, Asset Management Association of
China, SEC, and federal reserve banks. Cong earned a Ph.D. in Finance and
a MS in Statistics from Stanford University, where he served as the Presi-
dent of Ph.D. students association, received the Asian American Award and
the Lieberman Fellowship for leadership, research, teaching, and university
service. He also holds dual degrees from Harvard University where he gradu-
ated summa cum laude with an A.M. in Physics, an A.B. in Math & Physics, a
minor in Economics, and a language citation in French.
Lorenzo Costantino lived and worked in Europe, the USA, and Central
Asia and has 20 years of international experience in innovation and finance.
Mr. Costantino is a Partner at IDP European Consultants, a consulting
company specialized in project financing and management providing advi-
sory and training services on EU funding. At IDP European Consultants, Mr.
Costantino is responsible for the preparation and management of international
projects on a wide range of issues from innovation to financial engineering and
competitiveness.
Mr. Costantino is also an external expert and evaluator for the European
Commission, notably Chairman of the Advisory Group on “Access to Risk
Finance” and member of the Steering Committee for the “EU Investment
in Venture Capital and Other Risk Capital Fund of Funds”. As a Consul-
tant for the Finance and Private Sector Development Unit of the World Bank,
from 2001 to 2015 Mr. Costantino worked on a wide range of projects on
entrepreneurship, innovation, and finance in client countries. Prior to the
World Bank and IDP European Consultants, Mr. Costantino was Program
Coordinator for International Business at the “Centre for Strategic & Interna-
tional Studies” in Washington, DC and Analyst for “Pyramid Research”, the
technology consulting spin-off of the Economist Intelligence Unit in Boston,
M.A. (USA).
Juan Carlos Crisanto joined the BIS in 2001 and became Deputy Chairman
of its FSI in early 2017. In this capacity, he manages the day-to-day activities
of the Institute. During 2012–2013, Juan Carlos was seconded to the Secre-
tariat of the Basel Committee on Banking Supervision (BCBS) where his work
focused on assessing Basel III implementation; supervisory issues in systemic
banks; and the BCBS governance arrangements.
Before joining the BIS, Juan Carlos served as Head of the Regulation
Department at the Peruvian Banking, Insurance and Pension Funds Authority
(SBS). He holds an undergraduate degree in Law from Católica University
xiv NOTES ON CONTRIBUTORS

and a Master’s degree from the London School of Economics and Political
Sciences (LSE).
Ewa Dziwok is an Associate Professor at University of Economics in
Katowice, Poland. She graduated mathematics (M.Sc.) as well as finance and
banking (MSc), holds a Ph.D. and habilitation in finance. Her area of expertise
includes quantitative finance, risk management, monetary policy, alternative
investments, fixed-income securities with an emphasis on quantitative aspects.
She has been teaching finance, financial mathematics, quantitative methods,
alternative investments at graduate and post-graduate level. Since 2010 she
has been managing Master Studies in Quantitative Asset and Risk Management
(ARIMA).
Paul David Richard Griffiths is a Professor of Banking, Finance, and
Fintech in Ecole de Management de Normandie, Metis Lab. Paul also acts
as Academic Director of postgrads in Banking and Fintech. Prior to becoming
a full-time academic, Paul spent many years in leadership positions at global
management consulting firms, serving Boards of blue-chip companies, partic-
ularly in the financial services sector. He specializes in management of intan-
gible assets such as intellectual capital and related technologies such as arti-
ficial intelligence and Fintech. Having lived in nine and worked in 16 coun-
tries he defines himself as multicultural. Paul brings to his lectures the hands-
on experience of having started up from scratch consulting firms in eight
countries.
Paul’s interests in research bridge across the fields of Fintech and knowl-
edge management and the development of knowledge networks, particularly in
banking. He holds a master’s degree in engineering; he has been a Humphrey
Fellow (Fulbright Commission) at the University of Minnesota; and holds a
doctorate in business administration. He is a prolific writer in professional and
academic publications and a renowned speaker at conferences and seminars.
Dr. Charla Griffy-Brown is an accomplished multi-disciplined Leader,
Board Member, and Professor who leads transformational change. She works
extensively in the area of digital innovation and cyber risk helping orga-
nizations leverage new opportunities through analytics, risk evaluation, and
emerging technology deployment to achieve their strategic objectives. Her
track record includes working with C-level executives and boards for public
and private companies across different verticals. She has been recognized as
a thought-leader for her published work and is now distinguished as Editor-
in-Chief of the international journal, Technology in Society. Dr. Griffy-Brown
graduated from Harvard University, is a former Fulbright Scholar, and holds
a Ph.D. in Technology Management from Griffith University in Queensland,
Australia. In 2019, she was honored with the Pepperdine Graziadio School’s
George Award for outstanding achievement as a scholar, professor, and service
to the business community. In 2020 she was recognized with the Pepperdine
 NOTES ON CONTRIBUTORS xv

University Outstanding Leadership award. A former researcher at the Founda-

tion for Advanced Studies on International Development, Tokyo, Dr. Griffy-
Brown also served as an associate professor at the Tokyo Institute of Tech-
nology. She has served as a Visiting Fellow at Tsinghua University in China
and Aoyama Gakuin University in Japan. She has also worked with NASA, the
European Commission, and the UN Global Environmental Facility.
Dr. Tanguy Jacopin Dr. from Sorbonne University and post-doctorate from
Columbia University in New York and IESE Business School. Associate
Professor in ESIC Business & Marketing, Tanguy’s research is linked to
emerging markets, disruptive business models (fintech/insurtech & edtech),
and entrepreneurial ecosystems. He has been named International Expert of
the Jiangsu Province in 2018 and he has been a visiting scholar in many
business schools in Latin America, Asia, Africa, and the Russian Federation.
Founder & Managing Director of the strategic consultancy company Global
born (www.globalborn.com).
On top of that, Tanguy has a hectic academic life writing more than 30
papers and one book (CEOs as Leaders and Strategy Designers: Explaining
the Success of Spanish Banks—Palgrave Mcmillan).
Additionally, Tanguy worked for in international positions in the EU,
Eastern Europe, and Latin America. Involved in consulting projects with
several multinational corporations such as SDMO (now part of Kohler Group),
Inditex (Zara), Iberdrola, Telefónica, Santander, BBVA, FC Barcelona, Repsol,
America’s Cup, Opinno … He is a Mentor and Advisor of several startups in
incubators. In the last five years, Tanguy has created a new silo with the inter-
nationalization of business schools be they in the EU, Latin America, Asia,
Africa, or the Russian Federation.
Last, Tanguy is fluent in English, Spanish, French (native speaker), and
Portuguese and has a fair command of Russian.
Shradha Khanal received her M.B.A. in Finance from Kathmandu University.
Her research interest lies in the domain of investment research, mergers and
acquisitions, and educational entrepreneurship.
Demetrios Lazarikos A three-time CISO and established IT Security and
Risk Management executive, Laz works with organizations in understanding
where IT Security risks may reside. His ability to partner with different teams
(both internally and externally) allows him to work on building successful
Information Security, Risk Management, and Compliance programs. This
coupled with his capability of speaking to any level in the organization, allows
him to coach teams in understanding loss exposure, risk to revenue, and how
to build security/compliance into the fabric of an organization. Laz works with
Fortune 500 companies and emerging technology companies in building IT
security, IT risk, and compliance solutions. In his role as CISO, Laz drove
efforts in creating an information security and fraud big data platform to
combat cyber criminal activities and protecting the international business unit.
xvi NOTES ON CONTRIBUTORS

Laz is the inventor of several patents for controlling personally identifiable

information, Information Security, and quantifying security risks. He holds
a bachelor’s degree from Colorado State University, a master’s in Computer
Information Security (MCIS) from the University of Denver, a master’s in
Business Administration (MBA) from Pepperdine University, and has earned
several security and compliance certifications.
Prof. Spencer Li is a General Manager of STO Lab and BlueOcean Pay
which are leading digital payment companies on ICT, Fintech, and Blockchain.
He is the Advisory Board Member of the London Institute of Banking and
Finance. He received the 2020 Asia Futurist Leadership Award and Directors
of Year Awards 2019.
Beibei Li is an Associate Professor of IT & Management and Anna Loomis
McCandless Chair at Carnegie Mellon University. She has extensive experience
at leveraging large-scale observational data analytics and experimental anal-
ysis with a strong focus on modeling individual user behavior across online,
offline, and mobile channels for decision support. Her recent research has been
published in Management Science, Marketing Science, Information Systems
Research, Management Information Systems Quarterly, and several top Data
Science, Economics, Marketing, and Computer Science conferences.
Beibei has won several NSF Awards including a recent $2.5M grant on
Future of Work at the Human-Technology Frontier. She is the winner of nine
Best Paper Awards from major journals and conferences such as Information
Systems Research, the Web Conference (WWW), the International Confer-
ence on Information Systems (ICIS), Workshop on Information Systems
and Economics (WISE), Workshop on Information Technology and Systems
(WITS), and INFORMS Conference of Information Systems and Technology
(CIST). She has also received several research awards across a number of
industry and academic outlets including a Facebook Faculty Research Award,
a Google Faculty Research Award, an Adobe Faculty Research Award, a
LinkedIn Economic Graph Award, a Marketing Science Institute Research
Award, and a Research Award from Wharton Customer Analytics Initia-
tive. She has won the INFORMS Information System Society (ISS) Sandy
Slaughter Early Career Award in 2019. She is the winner of the Junior
Marketing Researcher Award in 2015. She is also the winner of the INFORMS
ISS Nunamaker-Chen Dissertation Award, the ACM SIGMIS Best Doctoral
Dissertation Award, and the Herman E. Krooss Doctoral Dissertation Award
in 2012–2013. Beibei received her Ph.D. with distinction from Leonard N.
Stern School of Business at New York University. She also holds M.S. and B.S.
in Computer Science and minored in Fashion Design.
Ms. Inutu Lukonga is currently working as a Senior Economist and Finan-
cial Sector Expert in the Regional Studies Division of Middle East and Central
Asia (MCD) department of the International Monetary Fund (IMF), which
covers the Middle East, North Africa, Afghanistan and Pakistan and the
 NOTES ON CONTRIBUTORS xvii

Caucasus and Central Asia (CCA). She holds a BA degree in Economics from
the University of Zambia, a Master of Arts degree in International Economics
from University of Sussex in the UK and was a Ph.D. candidate in develop-
ment economics also at the University of Sussex. She has extensive operational
experience as a central banker, a macro-economist, and financial sector expert,
including as a regulator of banks and securities firms. Since joining the Fund in
1993, she has undertaken assignments in more than 25 countries in Europe,
Africa, Asia, Middle East, and Caribbean. She has written on a variety of topics
including regulation of Islamic banks, macro financial risks, SMEs, inclusive
growth, Fintech, cyber risks, and digitalization.
Roman Matousek is a Professor of Financial Economics at Queen Mary
University of London. Before joining QMUL, Roman served as Director of
Research Excellence and Director of the Global Centre for Banking and Finan-
cial Innovation (GCBFI) at Nottingham University Business School, Univer-
sity of Nottingham. Roman served as Head of Research and Director of the
Research Centre for EMEA Banking, Finance and Economics. Roman is a
Distinguished International Professor at Shandong Normal University, China
and Honorary Professor, School of Social Sciences, Business and Management
Studies, University of Dundee, Scotland. Roman has currently been appointed
as the Visiting Research Economist at SEACEN Centre in Kuala Lumpur,
Malaysia, where he leads a project on “Cross-border interbank contagion risk
analysis”. He received a prestigious Pew Fellowship from Walsh School of
Foreign Service at Georgetown University, (USA) and was a Visiting Professor
at Tohoku University, Sendai, Japan. Roman hold/helds the appointments
on the editorial boards of several journals including Associate Editor of the
Journal of Banking & Finance, Journal of International Financial Markets,
Institutions & Money (Elsevier), Managing Editor of International Journal
of Monetary Economics and Finance.
Dr. Andria van der Merwe is an Executive Vice President at Compass
Lexecon where she specializes in complex litigation and regulatory investi-
gations related to financial markets. She provides consulting and testimonial
expertise in derivatives, fixed-income securities, market microstructure, cryp-
tocurrency, and blockchain technologies. Before joining Compass Lexecon,
she served as a Director of Portfolio Management at the Federal Home Loan
Bank of Chicago, where she developed as well as executed trading strategies in
fixed-income markets, focusing on debt, derivatives and securitized products.
As an author, Dr. van der Merwe wrote Market Liquidity Risk: Implica-
tions for Asset Pricing, Risk Management and Financial Regulation (Palgrave
Macmillan, 2015) and co-authored Credit Default Swaps: Mechanics and
Empirical Evidence on Benefits, Costs, and Inter-Market Relations (Palgrave
Macmillan, 2018). Her research has been published in several internationally
renowned journals on topics including complex mathematical algorithms to
extract information from digital signatures and economic analysis of cryp-
tocurrency. Dr. van der Merwe holds three U.S. patents that propose new
communication protocols for wireless network services.
xviii NOTES ON CONTRIBUTORS

Dr. van der Merwe has presented to audiences around the world from
Munich, Germany to Zurich, Switzerland to London and Chicago. Her topics
include economics in litigation context, economics of blockchain, cryptocur-
rency and bitcoin and managing liquidity and liquidity risks, for esteemed
groups including the American Bar Association, Swiss Finance Institute, and
100 Women in Hedge Funds.
Dr. van der Merwe earned her Ph.D. in electrical engineering with concen-
trations in signal processing and applied mathematics from The Ohio State
University and an M.B.A. with concentrations in finance, econometrics, and
accounting from The University of Chicago Booth School of Business. She
is a Research Fellow at the Johns Hopkins Institute for Applied Economics,
Global Health, and the Study of Business Enterprise.
Howard A. Miller is a highly motivated and creative expert in insurance,
insurance consulting, and risk management and a licensed agent since 1997
in property and casualty insurance. Howard provides complete insurance
programs and advisory consulting with a specialty focus on technology errors
& omissions, cyber liability and technology risk for a range of other industries
including manufacturing, distribution, professional services, non-profits, and
others. Howard has been successful in cyber crime insurance product devel-
opment, speaking and educational presentations. He is a board member for
the non-profit Secure The Village (information security educational outreach)
and Pepperdine Graziadio Business School Cyber Risk Professional Certifi-
cate advisory board. He is also currently co-lead for the Society of automotive
engineers risk management committee for G-32 cyber physical system security
standards body.
Panagiota Papadimitri is a Senior Lecturer in Accounting and Financial
Management in the Faculty of Business and Law at the University of
Portsmouth. Giota holds a B.A. (Hons) degree in Economics from the Univer-
sity of Crete (Greece), an MSc in Banking and Finance (Distinction) from the
Surrey Business School, University of Surrey (UK), and a Ph.D. in Economics
and Finance from the University of Portsmouth (UK). Her current research
interests lie in the area of Banking and Finance and Corporate Governance.
Recently published papers appear in journals such as the Journal of Corpo-
rate Finance, Journal of Business Research, Journal of Business Ethics, and the
Journal of Economic Behavior and Organization.
Fotios Pasiouras is a Full Professor of Banking and Finance at Montpellier
Business School. Additionally, he is Secretary of the Board of Directors of the
Financial Engineering and Banking Society, and he serves as a senior edito-
rial board member in various academic journals. His research focuses on risk,
performance, corporate governance, and regulations in the financial industry.
It has appeared in over 75 papers published in well-known international jour-
nals including: Management Science; Journal of Money, Credit & Banking;
Journal of Banking & Finance; European Journal of Operational Research,
 NOTES ON CONTRIBUTORS xix

Journal of Business Ethics, Journal of Business Research, Journal of Financial

Stability, etc. According to Scopus his work has received over 2000 citations
(excluding self-citations of all authors) and has an h-index of 20. Google
Scholar gives over 7000 citations to his work and an h-index of 38.
Michal Polena currently works as a data scientist for a major Czech bank
with a focus on streamlining processes through applied artificial intelligence
and natural language processing. His personal approach is to go beyond
textbook-based algorithmic formulas and expand their application to accom-
modate unique, random, and real-world instances in predictive analytics for
areas ranging from trade surveillance to enhanced compliance in regulated
environments. Michal has a master’s degree in Quantitative Economics from
Friedrich Schiller University in Jena and a second master’s degree in Finance,
Financial Markets, and Banking from the Institute of Economic Studies at
Charles University in Prague.
Maurizio Pompella (B.Sc., M.Sc., Ph.D.) is a Full Professor of Financial
Intermediaries Economics at the University of Siena, School of Economics and
Management. Dean of the Economics and Banking Degree (from 2009 to
2014), he is currently a Dean of the MSc in Economics and Management of
Financial Intermediaries. Visiting Professor and Ph.D. Supervisor at LSU-
NN, SibFU, and OMSU, Russian Federation, since 2014, Maurizio is also
serving as an Adjunct Professor at Charles University in Prague (CZ), since
2012. Editor of the Palgrave Series on Risk and Insurance, Palgrave Macmillan,
since 2015, he has been a book reviewer for the JRI, published by Amer-
ican Risk and Insurance Association, since 2003, and he is on the Editorial
Board of: i- The Review of Business (St. John’s University New York, US),
ii- the Vestnik of LSU (Nizhniy Novgorod, RF), iii- EKONOMIKA (Vilnius
University, LT), and iv- Business, Management and Education (GTUV, LT).
Maurizio has been teaching Banking, Finance, and Insurance at grad-
uate and post-graduate level in Italy, Eastern Europe, Latin America, the
Middle East, Russia, and China. His areas of expertise include Banking, Insur-
ance Economics, Structured Finance and Insurance, Fintech and Blockchain,
Alternative Risk Transfer.
Jack S. C. Poon is a Professor of Practice at the School of Accounting and
Finance of the Hong Kong Polytechnic University. He obtained three master’s
degrees from the Chicago Booth School of Business with high honors in
Business Administration, the Stanford University in Engineering Management,
and the California Institute of Technology in Electrical Engineering. He also
obtained his bachelor’s degree summa cum laude from the University of
Washington in Electrical Engineering.
Mr. Poon is a Fintech enthusiast, serial entrepreneur, startup advisor, and
Silicon Valley veteran. He started his career with Intel in Silicon Valley. Later,
he had served as Head of Corporate Finance, Head of Investment, and Head
of Technology Services for various multi-nationals. Furthermore, Mr. Poon
xx NOTES ON CONTRIBUTORS

was involved in the early stage with multiple startups which one was listed
in Nasdaq, and others were affiliated with TechStars Startup Accelerator and
Accenture Fintech Innovation Lab.
In addition to teaching, Mr. Poon is engaging as strategic advisors for star-
tups in areas related to artificial intelligence and blockchain and serving as
consultants with various Financial Services organizations.
Jermy Prenio joined the BIS in 2016 as Senior Advisor at its FSI. He is
involved in managing the FSI’s outreach program for banking supervision. He
contributes to the FSI’s published work, mainly on technology-related topics
such as cybersecurity and suptech, and develops other policy-related material
for FSI Connect.
Previously, he was Deputy Director for Regulatory Affairs at the Institute
of International Finance in Washington DC, where he led the formulation of
the global banking industry’s views on international regulatory issues. He also
worked as a regulator in the Philippines where he headed the Task Force on
Basel II Implementation. He has an MA from the University of the Philippines
School of Economics.
Denesh Rai received a graduate degree in Technical Economics and Manage-
ment from Nanjing University of Aeronautics and Astronautics (NUAA), in
China in 2018. He is affiliated with Fresh Start Business Consulting Inc. as
a business analyst. He has authored in academic journals presented as confer-
ence papers (based in China). His research interest includes data modeling,
innovation studies, blockchain technology, and other emerging disciplines.
Rupesh Regmi is currently a doctoral candidate in Entrepreneurship at
Nanjing University of Aeronautics and Astronautics (NUAA). Some of his
research interests are focused on innovation strategy and disruptive technolo-
gies, humane entrepreneurship, grey systems theory, and education manage-
ment.
Yael Roshwalb is an all-assets trader and banker focusing on innovation to
deliver on building the next generation roadmap in technology, finance, insur-
ance, real estate, hospitality, and healthcare. Professionally, her experience
encompasses all the facets of championing the ideal institutional customer
experience to partnering closely with senior management, engineering, and
marketing to realize competitive new products and services. Recognized for
her collegial managerial approach, her consulting projects at top-100 ranked
global clients include automating regulatory reporting, implementing risk
management control remediation, developing end-to-end payment systems for
taxes on derivatives, and implementing joint-venture programs across 100+
countries. Yael has edited and written research with Petr Teply for over a
decade.
Zenu Sharma, Ph.D. is an Assistant Professor of Finance at The Peter J.
Tobin College of Business of St. John’s University. She earned her Ph.D.
 NOTES ON CONTRIBUTORS xxi

from Rensselaer Polytechnic Institute where she was admitted with the pres-
tigious Ellis and Karin Chingos ’37 Fellowship. Her main research interests
are in the general area of Corporate Finance and Fintech. Her research has
been published in journals such as the Journal of Corporate Finance, Financial
Management, Ecological Economics, Journal of Financial Stability, and some
others. Her teaching experience includes a breadth of courses such as Fintech,
Corporate Finance, Financial Management, Mergers and Acquisitions, Invest-
ments, Derivatives, Financial Markets and Institutions, and Money, Banking
and Capital Markets.
Menelaos Tasiou is a Senior Lecturer in Quantitative Methods & Data
Analytics at the Faculty of Business and Law, University of Portsmouth. His
research covers topics in the fields of Multiple Criteria Decision Analysis
and empirical Finance focusing on governance and institutional aspects. His
publications appear in journals such as the European Journal of Operational
Research, Journal of Business Research, Journal of Business Ethics, Annals of
Operations Research, etc.
Petr Teplý is a Professor of Finance at the Faculty of Finance and Accounting
at University of Economics in Prague, Czech Republic. He obtained his Ph.D.
degree at the Institute of Economic Studies of the Faculty of Social Sciences,
Charles University in 2009. Petr regularly lectures at conferences and univer-
sities around the world and has written or co-authored over 150 research
papers and 10 books. Recognized internationally as a leader in training top-
level decision-makers at global banks, Petr’s collaborative approach to teaching
and consulting promotes data-driven, results-oriented success across financial
management teams during volatile markets and uncertain business circum-
stances. He has been a member of the Supervisory Board of the Czech Export
Bank since 2014.
Minas-Polyvios Tsagkarakis has been working in the Banking Sector for 25
years. Since 2018 he is a Subdivision Manager at the Corporate Banking—
Large Groups Division of National Bank of Greece. During 2001–2018, he
served as Auditor at the Group Internal Audit Division of NBG. He joined
the Bank in 1994 and until 2001 he worked at the Branch Network. He
holds a B.Sc. in Economics and an E-M.Sc. in Financial Analysis, both from
the University of Piraeus. He has attended research and executive education
programs at NYU, FORDHAM, INSEAD, University of Athens and Univer-
sity of Trento. Currently, he is a Ph.D. Candidate at the School of Produc-
tion Engineering and Management of the Technical University of Crete. His
research interest includes EU economic governance, financial stability, risk,
performance, and efficiency of the European and US banking sector, and banks
strategy in the age of digital disruption.
Dong Xiang is a Professor in Finance, and a Director of the International
Center for Digital Finance and Enterprise Development at Shandong Normal
University. He served as the deputy dean of the China Institute of Small,
xxii NOTES ON CONTRIBUTORS

Medium sized Enterprises at Qilu University of Technology. Prof. Dong Xiang

received his Ph.D. in Finance from Newcastle University in Australia. Then he
went to Griffith University for postdoctoral research and engaged in teaching
work in the same year. He was shortly employed by the International Insti-
tute for Financial and Economic Studies at Jiangxi University of Finance and
Economics in 2014. Research interests include financial market, regulatory and
operational efficiency, capital structure, SME financing and innovation, etc. So
far, he has more than 40 referee publications.
Yizhou Xiao is an Assistant Professor of Finance at CUHK Business School at
the Chinese University of Hong Kong. He was also a George Shultz Scholar at
the Stanford Institute for Economic Policy Research and a member of multiple
professional organizations such as the American Economic Association, Euro-
pean Finance Association, and the Econometric Society. Xiao researches on
financial economics, information economics, Fintech, and Entrepreneurship.
His academic interests include financial innovation, blockchains, crowdfunding
platforms, and informed trading. His research has been published in top
academic journals such as Journal of Finance. Xiao earned a Ph.D. in Finance
from Stanford University, a M.S. in Economics from Peking University, and a
B.S. in Finance from Renmin University of China.
Shoutong Thomas Zhang is a Lecturer at the Queen Mary University of
London, where he teaches and conducts research related to innovation and
entrepreneurship. Before Ph.D. studies at London Business School, he worked
globally in finance and management consulting.
Zhuo Zhang is a Full Professor of Management Science and Engineering
at Nanjing University of Aeronautics and Astronautics. He has published
several peer-reviewed articles on management science, innovation strategy, and
entrepreneurship.
Qingquan Tony Zhang is currently an Instructor of finance at the University
of Illinois Urbana Champaign’s Gies School of Business. He is also the R.C.
Evans Fellow in Data Analytics at the University of Illinois, Urbana Cham-
paign. As well as he is a quantitative equity portfolio manager/quantitative
researcher at Zacks Investment Management. He serves on the Educational
Advisory Group of the CFA Chicago society and the President of the Chicago
Chapter of Chinese Trading and Investment Association. He was an adjunct
Assistant Professor in the Department of Computer Science at the University
of Maryland Baltimore County. His research focuses on Big Data Analytics
and Artificial Intelligence in Finance and Smart Cities. He has co-founded a
high-tech startup in drones and RC cars. He earned his Ph.D. in computer
engineering from the University of Minnesota Twin Cities. He also earned his
M.B.A. from the University of Chicago’s Booth School of Business. He got
his M.S. and B.S. in Electrical Engineering from Fudan University, China. He
has authored and co-authored more than 40 papers in journals and confer-
ence proceedings. He has been awarded the I-Corp fellowship from the U.S.
 NOTES ON CONTRIBUTORS xxiii

National Science Foundation. He holds the Chartered Financial Analyst (CFA)

designation and is a Senior Member of the Institute of Electrical and Elec-
tronic Engineering (IEEE). He has been awarded the Best Paper Award for
IEEE Wireless Communications and Networking Conference (WCNC 2013),
the Best Paper Award for International Conference of Mobile Wireless Sensor
Network (MSN 2011), and the Best Paper Award for International Conference
of Mobile Wireless Sensor Network, 2006.
Dr. Yun Zhu, Ph.D received his Ph.D. in finance from Lally School of Busi-
ness at Rensselaer Polytechnic Institute. His research interests are in the areas
of FinTech, political economics, corporate governance, and financial institu-
tions. His recent works are published in Journal of Banking and Finance,
Journal of Corporate Finance, Journal of Empirical Finance, Journal of Finan-
cial Stability, the Financial Review, and Journal of International Money and
Finance. Dr. Zhu currently works as an Associate Professor of finance at The
Peter J. Tobin College of Business of St. John’s University. Dr. Zhu also serves
as the Editor of Review of Business.
Another random document with
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Saltpeter, or niter, is a compound of this metal (or rather its oxide)
with nitric acid. It is one of the ingredients of gunpowder, and has the
property of quickening the combustion of all combustible bodies.
Mix some chlorate of potash with lump sugar, both being powdered,
and drop on the mixture a little strong sulphuric acid, and it will
instantly burst into flame. This experiment also requires caution.
Want of space precludes us from considering the individual metals
and their compounds in detail; it must suffice to describe some
experiments showing some of their properties.
The different affinities of the metals for oxygen may be exhibited in
various ways. The silver or zinc tree has already been described.

Experiments.
1. Into a solution of nitrate of silver in distilled water immerse a clean
plate or slip of copper. The solution, which was colorless, will soon
begin to assume a greenish tint, and the piece of copper will be
covered with a coating of a light gray color, which is the silver
formerly united to the nitric acid, which has been displaced by the
greater affinity or liking of the oxygen and acid for the copper.
2. When the copper is no longer coated, but remains clean and
bright when immersed in the fluid, all the silver has been deposited,
and the glass now contains a solution of copper.
Place a piece of clean iron in the solution, and it will almost instantly
be coated with a film of copper, and this will continue until the whole
of that metal is removed, and its place filled by an equivalent quantity
of iron, so that the nitrate of iron is found in the liquid. The oxygen
and nitric acid remain unaltered in quantity or quality during these
changes, being merely transferred from one metal to another.
A piece of zinc will displace the iron in like manner, leaving a solution
of nitrate of zinc.
Nearly all the colors used in the arts are produced by metals and
their combinations; indeed, one is named chromium, from a Greek
word signifying color, on account of the beautiful tints obtained from
its various combinations with oxygen and the other metals. All the
various tints of green, orange, yellow, and red, are obtained from this
metal.
Solutions of most of the metallic salts give precipitates with solutions
of alkalies and their salts, as well as with many other substances,
such as what are usually called prussiate of potash, hydro-sulphuret
of ammonia, etc.; and the colors differ according to the metal
employed, and so small a quantity is required to produce the color
that the solutions before mixing may be nearly colorless.

Experiments.
1. To a solution of sulphate of iron add a drop or two of a solution of
prussiate of potash, and a blue color will be produced.
2. Substitute sulphate of copper for iron, and the color will be a rich
brown.
3. Another blue, of quite a different tint, may be produced by letting a
few drops or a solution of ammonia fall into one of sulphate of
copper—a precipitate of a light blue falls down, which is dissolved by
an additional quantity of the ammonia, and forms a transparent
solution of the most splendid rich blue color.
4. Into a solution of sulphate of iron let fall a few drops of a strong
infusion of galls, and the color will become a bluish-black—in fact,
ink. A little tea will answer as well as the infusion of galls. This is the
reason why certain stuffs formerly in general use for dressing-gowns
for gentlemen were so objectionable; for as they were indebted to a
salt of iron for their color, buff as it was called, a drop of tea
accidentally spilt produced all the effect of a drop of ink.
5. Put into a largish test tube two or three small pieces of granulated
zinc, fill it about one-third full of water, put in a few grains of iodine
and boil the water, which will at first acquire a dark purple color,
gradually fading as the iodine combines with the zinc. Add a little
more iodine from time to time, until the zinc is nearly all dissolved. If
a few drops of this solution be added to an equally colorless solution
of corrosive sublimate (a salt of mercury) a precipitate will take place
of a splendid scarlet color, brighter if possible than vermilion, which
is also a preparation of mercury.

Crystallization of Metals.
Some of the metals assume certain definite forms in returning from
the fluid to the solid state. Bismuth shows this property more readily
than most others.

Experiment.
Melt a pound or two of bismuth in an iron ladle over the fire; remove
it as soon as the whole is fluid; and when the surface has become
solid break a hole in it, and pour out the still fluid metal from the
interior; what remains will exhibit beautifully-formed crystals of a
cubic shape.
Sulphur may be crystallized in the same manner, but its fumes, when
heated, are so very unpleasant that few would wish to encounter
them.
One of the most remarkable facts in chemistry, a science abounding
in wonders, is the circumstance, that the mere contact of hydrogen,
the lightest body known, with the metal platinum, the heaviest, when
in a state of minute division, called spongy platinum, produces an
intense heat, sufficient to inflame the hydrogen; of course this
experiment must be made in the presence of atmospheric air or
oxygen.
Time and space (or rather the want of them) compel us to conclude
with a few experiments of a miscellaneous character.

To Form a Solid From Two Liquids.

Prepare separately, saturated solutions of sulphate of magnesia
(Epsom salts) and carbonate of potash. On mixing them the result
will be nearly solid.
Solutions of muriate of lime and carbonate of potash will answer as
well.
 To Form a Liquid From Two Solids.
Rub together in a Wedgewood mortar a small quantity of sulphate of
soda and acetate of lead, and as they mix they will become liquid.
Carbonate of ammonia and sulphate of copper, previously reduced
to powder separately, will also, when mixed, become liquid, and
acquire a most splendid blue color.
The greater number of salts have a tendency to assume regular
forms, or become crystallized, when passing from the fluid to the
solid state; and the size and regularity of the crystals depend in a
great measure on the slow or rapid escape of the fluid in which they
were dissolved. Sugar is a capital example of this property; the
ordinary loaf-sugar being rapidly boiled down, as it is called: while to
make sugar-candy, which is nothing but sugar in a crystallized form,
the solution is allowed to evaporate slowly, and as it cools it forms
into those beautiful crystals termed sugar-candy. The threads found
in the center of some of the crystals are merely placed for the
purpose of hastening the formation of the crystals.

Experiments.
1. Make a strong solution of alum, or of sulphate of copper, or blue
vitriol, and place in them rough and irregular pieces of clinker from
stoves, or wire-baskets, and set them by in a cool place, where they
will be free from dust, and in a few days crystals of the several salts
will deposit themselves on the baskets, etc.; they should then be
taken out of the solutions, and dried, when they form very pretty
ornaments for a room.
2. Fill a Florence flask up to the neck with a strong solution of
sulphate of soda, or Glauber’s salt, boil it, and tie the mouth over
with a piece of moistened bladder while boiling, and set it by in a
place where it cannot be disturbed. After twenty-four hours it will
probably still remain fluid. Pierce the bladder covering with a
penknife, and the entrance of the air will cause the whole mass
instantly to crystallize, and the flask will become quite warm from the
latent caloric, of which we have spoken before, given out by the salt
in passing from the fluid to the solid state. It is better to prepare two
or three flasks at the same time, to provide against accidents, for the
least shake will often cause crystallization to take place before the
proper time.

Changes of Color Produced by Colorless Liquids.

Make a strong infusion of the leaves of the red cabbage, which will
be of a beautiful blue color; drop into it a few drops of dilute sulphuric
acid, and the color will change to a bright red; add some solution of
carbonate of potash, or soda, and the red color will gradually give
way to the original blue; continue adding the alkaline solution, and
the fluid will assume a bright green color. Now resume the acid, and
as it is dropped in, the color will again change from green to blue,
and from blue to red. Now this simple experiment illustrates three
points: first, that acids change the color of most vegetable blues and
greens to red; second, that alkalies change most blues and reds to
green; and third, that when the acid and alkali are united together,
they both lose their property of changing color, and become what is
called a neutral salt, i.e. a compound possessing the properties of
neither of its constituents.
 ACOUSTICS.
Acoustics is the science relating to sound and hearing. Sound is
heard when any shock or impulse is given to the air, or to any other
body which is in contact directly or indirectly with the ear.

Difference Between Sound and Noise.

Noises are made by the crack of whips, the beating of hammers, the
creak of a file or saw, or the hubbub of a multitude. But when a bell is
struck, the bow of a violin drawn across the strings, or the wetted
finger turned round a musical glass, we have what are properly
called sounds.

Sounds, How Propagated.

Sounds are propagated on all bodies much after the manner that
waves are in water, with a velocity of 1,142 feet in a second. Sounds
in liquids and in solids are more rapid than in air. Two stones rubbed
together may be heard in water at half a mile; solid bodies convey
sounds to great distances, and pipes may be made to convey the
voice over every part of the house.

To Show How Sound Travels Through a Solid.

Take a long piece of wood, such as the handle of a hair broom, and
placing a watch at one end, apply your ear to the other, and the
tickings will be distinctly heard.

To Show That Sound Depends on Vibration.

Touch a bell when it is sounding, and the noise ceases; the same
may be done to a musical string with the same results. Hold a
musical pitch-fork to the lips, when it is made to sound, and a
quivering motion will be felt from its vibrations. These experiments
show that sound is produced by the quick motions and vibrations of
different bodies.

Musical Figures Resulting From Sound.

Cover the mouth of a wine-glass, having a foot-stalk, with a thin
sheet of membrane, over which scatter a layer of fine sand. The
vibrations excited in the air by the sound of a musical instrument,
held within a few inches of the membrane, will cause the sand on its
surface to form regular lines and figures with astonishing celerity,
which vary with the sound produced.

To Make an Æolian Harp.

This instrument consists of a long, narrow box of very thin deal,
about six inches deep, with a circle in the middle of the upper side of
an inch and a half in diameter, in which are to be drilled small holes.
On this side seven, ten or more strings of very fine catgut are
stretched over bridges at each end, like the bridges of a fiddle, and
screwed up or relaxed with screw-pins. The strings must all be tuned
to one and the same note, and the instrument should be placed in a
window partly open, in which the width is exactly equal to the length
of the harp, with the sash just raised to give the air admission. When
the air blows upon these strings with different degrees of force, it will
excite different tones of sound. Sometimes the blast brings out all
the tones in full concert, and sometimes it sinks them to the softest
murmurs.
A colossal imitation of the instrument just described was invented at
Milan in 1786 by the Abbate Gattoni. He stretched seven strong iron
wires, tuned to the notes of the gamut, from the top of a tower sixty
feet high, to the house of a Signor Moscate, who was interested in
the success of the experiment; and this apparatus, called the “giant’s
harp,” in blowing weather yielded lengthened peals of harmonious
music. In a storm this music was heard at a greater distance.
 FIREWORKS.
We know full well the intense delight taken by boys in risking their
limbs or their lives, especially when such risk is accompanied with
noise. Boys always have done so, and always will do so in spite of
the very best of advice or precautions. As, therefore, it is impossible
to keep them from making noises, and endangering themselves, we
have, in this article, endeavored to show them how to make as much
noise as possible, with as little danger as possible.
What is there that makes the most noise, and is most dangerous?
Gunpowder, of course. Therefore, we have given descriptions of the
best methods of employing this material, feeling quite sure that of
accidents with gunpowder nine out of every ten are caused by
ignorance. We knew a boy who lost the use of a thumb, and took all
the skin off the palm of his right hand, by ignorant management of
powder. He had read of blasting rocks, and nothing would satisfy him
but blasting a bank. So he bored a deep hole in it with a stick, filled
the hole with gunpowder, and then poked a lighted lucifer into the
powder. The consequence was that his face was so scorched as not
to be recognized, all his eyebrows and eyelashes, and most of his
hair were burned off, while his right hand was injured, as has been
already mentioned. Now that boy had been studiously kept out of the
way of powder by female relatives, and was naturally profoundly
ignorant of its effects. Had he been taught to handle it, he would not
now be forced to keep his right hand closed, or to write by holding
the pen between the fingers of his clenched hand.

Gunpowder.
It will not be very advisable for the firework boy to make his own
powder, but still it will not be amiss that he should know how it is
prepared. Pulverize separately 5 drams of nitrate of potass, 1 dram
of sulphur, and 1 dram of newly-burnt charcoal; mix them together in
a mortar, with a little water, so as to make the compound into a
dough, which roll out into round pieces of the thickness of a pin upon
a slab. This must be done by moving a board backwards and
forwards until the dough is of a proper size. When three or four of
these pieces are ready put them together, and cut them off into small
grains. Place these grains on a sheet of paper, in a warm place,
where they will soon dry, but away from a fire. During granulation the
dough must be prevented from sticking by using a little of the dry
compound powder. This mode of granulation, though tedious, is the
only one to be used for so small a quantity for the sake of
experiment. In making powder in a large way it is granulated by
passing the composition through sieves.

How to Make Touch-Paper.

Dissolve in a little spirits of wine or vinegar a little saltpeter, then take
some purple or blue paper, and wet it with the above liquor, and it will
be fit for use. When pasting paper on any of the following works take
care that the paste does not touch that part which is to burn. The
method of using this paper is to cut it into slips long enough to go
once round the mouth of a serpent, cracker, etc.

Cases for Squibs, Flower-Pots, Rockets, Roman

Candles, Etc.
Procure a hard wooden cylinder, or, if possible, one made of metal,
whose diameter corresponds with that of the interior of the proposed
case. Roll round it several folds of cartridge paper, and paste the
edges well, so that it may be held securely. Tie it round until dry.

To Choke the Cases.

When the cases are thus made they will require to be tied at the
lower end. This is called choking them, and as much force is
required it is necessary. Fix a wire into a small solid cylinder. Take
another short piece, an inch or two long, with a hole up it to admit the
other end of the wire, fit it on, and pass it up the case. Then having
fastened a piece of whip-cord to a post, wind it round the part left
hollow by the wire, which should be about half an inch from the end;
pull it tight with the right hand, and work the case round with the left.
Cut out a piece of touch paper two inches long, and an inch and a
half broad, wind it round the choke, and tie it on with a piece of fine
string—twist it to a point. The cases are best choked while damp.

Composition for Squibs, Etc.

Gunpowder, half a pound; charcoal, 1 ounce; brimstone, 1 ounce, or
in like proportion; grind them in a muller or pound them in a mortar.
Or you may take 1 part steel filings, 1 charcoal, 1 sulphur, and 4
powder, which is a very good mixture, and can be rubbed together in
a mortar.

How to Fill the Cases.

Your cases must be very dry when ready, and should be put into an
iron or wooden mold; first put in a thimble full of your powder, and
ram it down very hard with your ruler, then put in a little more till the
case is full, ramming it down hard every time. If you have no mold,
hold the case in your left hand with the twisted touch-paper
downwards, and fill it after the same manner. When you have filled
within an inch of the top, fill up this with loose powder not rammed,
for a bang, and fold in the ends; after filling a dozen or two melt
some pitch in a small ladle, and smear the end of the case with it by
means of a small brush.

To Make Crackers.
Cut some stout cartridge-paper into pieces three inches and a half
broad and one foot long, fold down one edge of these pieces
lengthwise about three-quarters of an inch broad, then fold the
double edge down a quarter of an inch, and turn the single edge
back half over the double fold. Open it, and lay all along the channel
which is formed by the folding of the paper some meal powder, then
fold it over and over till the paper is doubled up, rubbing it down at
every turn; this being done bend it backwards and forwards two
inches and a half, or thereabouts, at a time, as often as the paper
will allow. Hold all these folds flat and close, and with a small
pinching cord give one turn round the middle of the cracker and
pinch it close; bind it with pack thread as tight as you can, then in the
place where it was pinched prime one end and cap it with touch-
paper.
When these crackers are fired they will give a loud report at every
turn of the paper: if you want a great number of these, you have only
to cut the paper longer, or join it on to a greater length; but if they are
made very long you must have a piece of wood with a groove in it
deep enough to let in half the cracker, which will hold it straight while
you are pinching it.

Roman Candles and Stars.

These are best made with the following ingredients: 1 ounce of
powder, 1 ounce of sulphur, and 2 ounces of niter. Some persons,
however, prefer 1 part sulphur, 1 charcoal, 1 iron filings, 4 of powder,
and 8 of niter. The composition being made, in filling the cases fill the
contrary way to a squib—stop up the choke by driving down a piece
of paper. Put in 1 quill of gunpowder loose and 1 star made in the
following manner: 1 ounce of camphor, 1 of sulphur, 2 of meal
powder, 1 ounce of the colored fires, moisten them with oil of
turpentine, and work them into little round balls. Having placed a star
within the case, put in above it 3 quills of the composition, ram down,
then powder, star, and composition alternately, till the case is full.
Paste touch-paper round the top and twist to a point.

Rockets.
There are several recipes for making rockets, the best of which is 3
ounces of charcoal, 6 of sulphur, 8 of niter, 32 of meal powder.
Another very good one is, 3 ounces of iron filings, 4 of powdered
charcoal, 8 of sulphur, 16 of niter, and 64 of meal powder. If a
smaller quantity is wanted divide each proportion by 2, if a still
smaller divide by 4.
 Rains.
Sometimes gold or silver rains are added to rockets, which give them
a very beautiful appearance. A gold rain is made of 2 parts sawdust,
4 sulphur, 4 meal powder, 6 glass dust, 16 niter, in all 32 parts. A
silver rain may be made of 2 parts salt prunella, 8 sulphuret of
antimony, 8 sulphur, 8 meal powder, and 14 niter, in all 32 parts.

Catherine Wheels.
These are very pretty fireworks, and are made to turn on a pivot.
There are many recipes for the composition of which they are
formed; 1 part camphor, 1 sulphur, 1 niter, 2 meal powder. Another
is, 3 parts iron filings, 4 sulphur, 12 niter, 16 meal powder. This
composition is to be rammed into small cases, and bound round a
small wheel having a hole for a pivot in the center.

Various Colored Fires.

The following recipes will give the young firework maker a great
variety of the most beautiful fires. They should never be fired in a
room, however, and always away from a dwelling.

Crimson Fire.
The principal ingredient in this is nitrate of strontium, of which 40
parts are taken, with 13 of sulphur, 15 of chlorate of potass, 4 of
sulphuret of antimony, and 2 of lamp-black. These, as all the
ingredients for the other fires, should be rubbed in a ladle, and they
may be used in a ladle or iron dish set on the ground.

Blue Fire.
The ingredients of blue fire are 20 parts; 12 of niter, 4 of sulphur, 2 of
sulphuret of antimony, and 2 of lamp-black.

Green Fire.
The ingredients for green fire are in 54 parts; 42 of nitrate of barytes,
8 of sulphur, 3 of chlorate of potass, and 1 of lamp-black.

Purple Fire.
The best recipe for purple fire is of 60 parts; 25 of niter, 25 of nitrate
of strontium, 7 of sulphur, 2 of realgor, and 1 of lamp-black.

White Fire.
The best and purest white fire is made of 24 parts of niter, 7 of
sulphur, 2 of red arsenic, and one of lamp-black.

Spur Fire.
9 parts of niter, 4 of sulphur, and 3 of lamp-black, well rubbed
together.

Blue Lights.
These are made of 4 parts of sulphur, 2 of niter, and 1 of powder,
and are rammed into squib-cases the contrary way.

Port or Wildfires.
Saltpeter 4 parts, meal powder 6 parts, and sulphur 3 parts. The
composition to be moistened with linseed-oil.

Slow Fire for Wheels.

Saltpeter 4 parts, sulphur 2 parts, and meal powder 2 parts.

Dead Fire for Wheels.

Saltpeter 5 parts, sulphur 1 part, lapis calaminaris 1 part, and
antimony 1 part.
 Cautions.
Such are the principles and methods by which fireworks may be
made; but we would advise our young friends to be very cautious,
and never to attempt making any fireworks by candlelight; always to
select some outhouse for their operations; to see that no iron or steel
implements are about the place in which their fireworks are being
manufactured, or they may go off before they wish it; to use wooden
or brass implements in the bruising, grinding, and sifting of their
mixtures; and never to bring the fireworks, or any of their ingredients,
into the dwelling-house, or they may suddenly receive a
“Heavy blow and great discouragement.”

To Make an Illuminated Spiral Wheel.

Procure a circular horizontal wheel two feet in diameter with a hole
quite through the nave, then take four thin pieces of deal three feet
long each, and three-quarters of an inch broad each. One end of
each of these pieces is to be nailed to the felloe of the wheel at an
equal distance from one another, and the other end nailed to a block
with a hole in its bottom, which must be perpendicular with that in the
block of the wheel, but not so large. The wheel being thus made, a
hoop planed down very thin must be nailed to the felloe of the wheel,
and wound round the four sticks in a spiral line from the wheel to the
block at the top; on the top of this block a case of Chinese fire must
be fixed, and on the wheel any number of cases, which must incline
downwards and burn two at a time. The axis of the wheel must be a
little longer than the cone, and made very smooth at the top, on
which the upper block is to turn and the whole weight of the wheel to
rest.

[THE END.]
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1 Napoleon’s Oraculum and Dream Book.

2 How to Do Tricks.
3 How to Flirt.
4 How to Dance.
5 How to Make Love.
6 How to Become an Athlete.
7 How to Keep Birds.
8 How to Become a Scientist.
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10 How to Box.
11 How to Write Love Letters.
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13 How to Do It; or, Book of Etiquette.
14 How to Make Candy.
15 How to Become Rich.
16 How to Keep a Window Garden.
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