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Quantitative analysis of cryptocurrencies transaction graph

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Cryptocurrencies as a new way of transferring assets and securing financial transactions have gained popularity in recent years. Transactions in cryptocurrencies are publicly available, hence, statistical studies on different aspects… Click to show full abstract

Cryptocurrencies as a new way of transferring assets and securing financial transactions have gained popularity in recent years. Transactions in cryptocurrencies are publicly available, hence, statistical studies on different aspects of these currencies are possible. However, previous statistical analysis on cryptocurrencies transactions have been very limited and mostly devoted to Bitcoin, with no comprehensive comparison between these currencies. In this study, we intend to compare the transaction graph of Bitcoin, Ethereum, Litecoin, Dash, and Z-Cash, with respect to the dynamics of their transaction graphs over time, and discuss their properties. In particular, we observed that the growth rate of the nodes and edges of the transaction graphs, and the density of these graphs, are closely related to the price of these currencies. We also found that the transaction graph of these currencies is non-assortative, i.e. addresses do not tend for transact with a particular type of addresses of higher or lower degree, and the degree sequence of their transaction graph follows the power law distribution.

Keywords: transaction graph; quantitative analysis; analysis cryptocurrencies; transaction

Journal Title: Applied Network Science
Year Published: 2019

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