Evolutionary dynamics of cryptocurrency transaction networks: An empirical study
AffiliationUniv Arizona, Dept Management Informat Syst
MetadataShow full item record
PublisherPUBLIC LIBRARY SCIENCE
CitationLiang J, Li L, Zeng D (2018) Evolutionary dynamics of cryptocurrency transaction networks: An empirical study. PLoS ONE 13(8): e0202202. https://doi.org/10.1371/journal.pone.0202202
Rights© 2018 Liang et al. This is an open access article distributed under the terms of the Creative Commons Attribution License
Collection InformationThis item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at email@example.com.
AbstractCryptocurrency is a well-developed blockchain technology application that is currently a heated topic throughout the world. The public availability of transaction histories offers an opportunity to analyze and compare different cryptocurrencies. In this paper, we present a dynamic network analysis of three representative blockchain-based cryptocurrencies: Bitcoin, Ethereum, and Namecoin. By analyzing the accumulated network growth, we find that, unlike most other networks, these cryptocurrency networks do not always densify over time, and they are changing all the time with relatively low node and edge repetition ratios. Therefore, we then construct separate networks on a monthly basis, trace the changes of typical network characteristics (including degree distribution, degree assortativity, clustering coefficient, and the largest connected component) over time, and compare the three. We find that the degree distribution of these monthly transaction networks cannot be well fitted by the famous power-law distribution, at the same time, different currency still has different network properties, e.g., both Bitcoin and Ethereum networks are heavy-tailed with disassortative mixing, however, only the former can be treated as a small world. These network properties reflect the evolutionary characteristics and competitive power of these three cryptocurrencies and provide a foundation for future research.
NoteOpen access journal.
VersionFinal published version
SponsorsNational Key Research and Development Program of China [2017YFC0820105, 2016QY02D0305]; National Natural Science Foundation of China [71621002, U1435221]; Key Research Program of the Chinese Academy of Sciences [ZDRW-XH-2017-3]
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