The bow tie structure of the Bitcoin users graph

Abstract: The availability of the entire Bitcoin transaction history, stored in its public blockchain, offers interesting opportunities for analysing the transaction graph to obtain insight on users behaviour. This paper presents an analysis of the Bitcoin users graph, obtained by clustering the transaction graph, to highlight its connectivity structure and the economical meaning of the different obtained components. In fact, the bow tie structure, already observed for the graph of the web, is augmented, in the Bitocoin users graph, with the economical information about the entities involved. We study the connectivity components of the users graph individually, to infer their macroscopic contribution to the whole economy. We define and evaluate a set of measures of nodes inside each component to characterize and quantify such a contribution. We also perform a temporal analysis of the evolution of the resulting bow tie structure. Our findings confirm our hypothesis on the components semantic, defined in terms of their economical role in the flow of value inside the graph

The bow tie structure of the Bitcoin users graph

Abstract The availability of the entire Bitcoin transaction history, stored in its public blockchain, offers interesting opportunities for analysing the transaction graph to obtain insight on users behaviour. This paper presents an analysis of the Bitcoin users graph, obtained by clustering the transaction graph, to highlight its connectivity structure and the economical meaning of the different obtained components. In fact, the bow tie structure, already observed for the graph of the web, is augmented, in the Bitocoin users graph, with the economical information about the entities involved. We study the connectivity components of the users graph individually, to infer their macroscopic contribution to the whole economy. We define and evaluate a set of measures of nodes inside each component to characterize and quantify such a contribution. We also perform a temporal analysis of the evolution of the resulting bow tie structure. Our findings confirm our hypothesis on the components semantic, defined in terms of their economical role in the flow of value inside the graph

Bow-tie structure of the Polkadot transfer network

While there are many data collection and analysis tools for Ethereum - the largest smart contract blockchain by market capitalization, development of similar tools for other smart contract blockchains is lacking. Reasons for this are non-existent standards, changing specifications d ue t o rapid development, common usage of the off-chain storage, and lack of developers. One of such blockchains is Polkadot - a layer- zero blockchain featuring a single relay chain whose role is to secure smart contract transactions on multiple other parachains. In this paper we describe a data collection pipeline for Polkadot blockchain that we then use to perform an analysis of the bow-tie structure of its transfer network over time, with special emphasis on the role of nominators and validators in this structure. We find evidence that t he Polkadot ecosystem iss lowly maturing from a system dominated by nominators and validators, both of which require some technical skill as well as willingness to bond sufficient amount of funds, into a system increasingly populated by regular users using the financial services of Polkadot

Cryptoasset networks: Flows and regular players in Bitcoin and XRP

Cryptoassets flow among players as recorded in the ledger of blockchain for all the transactions, comprising a network of players as nodes and flows as edges. The last decade, on the other hand, has witnessed repeating bubbles and crashes of the price of cryptoassets in exchange markets with fiat currencies and other cryptos. We study the relationship between these two important aspects of dynamics, one in the bubble/crash of price and the other in the daily network of crypto, by investigating Bitcoin and XRP. We focus on “regular players” who frequently appear on a weekly basis during a period of time including bubble/crash, and quantify each player’s role with respect to outgoing and incoming flows by defining flow-weighted frequency. During the most significant period of one-year starting from the winter of 2017, we discovered the structure of three groups of players in the diagram of flow-weighted frequency, which is common to Bitcoin and XRP in spite of the different nature of the two cryptos. By examining the identity and business activity of some regular players in the case of Bitcoin, we can observe different roles of them, namely the players balancing surplus and deficit of cryptoassets (Bal-branch), those accumulating the cryptoassets (In-branch), and those reducing it (Out-branch). Using this information, we found that the regime switching among Bal-, In-, Out-branches was presumably brought about by the regular players who are not necessarily dominant and stable in the case of Bitcoin, while such players are simply absent in the case of XRP. We further discuss how one can understand the temporal transitions among the three branches

Bitcoin Transaction Networks: An Overview of Recent Results

Cryptocurrencies are distributed systems that allow exchanges of native (and non-) tokens between participants. The availability of the complete historical bookkeeping opens up an unprecedented possibility: that of understanding the evolution of a cryptocurrency's network structure while gaining useful insights into the relationships between users' behavior and cryptocurrency pricing in exchange markets. In this article we review some recent results concerning the structural properties of the Bitcoin Transaction Networks, a generic name referring to a set of three different constructs: the Bitcoin Address Network, the Bitcoin User Network, and the Bitcoin Lightning Network. The picture that emerges is of a system growing over time, which becomes increasingly sparse and whose mesoscopic structural organization is characterized by the presence of an increasingly significant core-periphery structure. Such a peculiar topology is accompanied by a highly uneven distribution of bitcoins, a result suggesting that Bitcoin is becoming an increasingly centralized system at different levels

Bitcoin Transaction Networks: an overview of recent results

Cryptocurrencies are distributed systems that allow exchanges of native (and non-) tokens among participants. The complete historical bookkeeping and its wide availability opens up an unprecedented possibility, i.e. that of understanding the evolution of their network structure while gaining useful insight on the relationships between user' behaviour and cryptocurrency pricing in exchange markets. In this contribution we review some of the most recent results concerning the structural properties of Bitcoin Transaction Networks, a generic name referring to a set of different constructs: the Bitcoin Address Network, the Bitcoin User Network and the Bitcoin Lightning Network. The picture that emerges is that of system growing over time, which becomes increasingly sparse and whose mesoscopic structural organization is characterised by the presence of an increasingly significant core-periphery structure. Such a peculiar topology is matched by a highly uneven distribution of bitcoins, a result suggesting that Bitcoin is becoming an increasingly centralized system at different levels.Comment: 15 pages, 7 figure

Bow-tie structures of twitter discursive communities

Bow-tie structures were introduced to describe the World Wide Web (WWW): in the direct network in which the nodes are the websites and the edges are the hyperlinks connecting them, the greatest number of nodes takes part to a bow-tie, i.e. a Weakly Connected Component (WCC) composed of 3 main sectors: IN, OUT and SCC. SCC is the main Strongly Connected Component of WCC, i.e. the greatest subgraph in which each node is reachable by any other one. The IN and OUT sectors are the set of nodes not included in SCC that, respectively, can access and are accessible to nodes in SCC. In the WWW, the greatest part of the websites can be found in the SCC, while the search engines belong to IN and the authorities, as Wikipedia, are in OUT. In the analysis of Twitter debate, the recent literature focused on discursive communities, i.e. clusters of accounts interacting among themselves via retweets. In the present work, we studied discursive communities in 8 different thematic Twitter datasets in various languages. Surprisingly, we observed that almost all discursive communities therein display a bow-tie structure during political or societal debates. Instead, they are absent when the argument of the discussion is different as sport events, as in the case of Euro2020 Turkish and Italian datasets. We furthermore analysed the quality of the content created in the various sectors of the different discursive communities, using the domain annotation from the fact-checking website Newsguard: we observe that, when the discursive community is affected by m/disinformation, the content with the lowest quality is the one produced and shared in SCC and, in particular, a strong incidence of low- or non-reputable messages is present in the flow of retweets between the SCC and the OUT sectors. In this sense, in discursive communities affected by m/disinformation, the greatest part of the accounts has access to a great variety of contents, but whose quality is, in general, quite low; such a situation perfectly describes the phenomenon of infodemic, i.e. the access to "an excessive amount of information about a problem, which makes it difficult to identify a solution", according to WHO

Reconstructing networks

Complex networks datasets often come with the problem of missing information: interactions data that have not been measured or discovered, may be affected by errors, or are simply hidden because of privacy issues. This Element provides an overview of the ideas, methods and techniques to deal with this problem and that together define the field of network reconstruction. Given the extent of the subject, we shall focus on the inference methods rooted in statistical physics and information theory. The discussion will be organized according to the different scales of the reconstruction task, that is, whether the goal is to reconstruct the macroscopic structure of the network, to infer its mesoscale properties, or to predict the individual microscopic connections.Comment: 107 pages, 25 figure