Concentration Within Distribution: Unmasking Bitcoin's Structural Centralization Through Network Science
Although the Bitcoin protocol is designed to be decentralized, its real-world user network (BUN) exhibits a pronounced core–periphery mesoscopic structure, revealing latent structural centralization risks. Method: Leveraging raw blockchain data, we construct a dedicated database and propose directed-sensitive PageRank and HITS centrality measures; we further design four variants of Newman’s assortativity coefficient to enable multidimensional, dynamic characterization of structural influence distribution. Combining connected component analysis with high-frequency price volatility correlation testing, we examine temporal evolution of network topology. Contribution/Results: We identify persistent consolidation among a few dominant connected components, indicating an emergent “concentration-in-distribution” evolutionary trend. Crucially, structural concentration—quantified via our metrics—exhibits statistically significant correlation with market price volatility, providing empirical evidence that topological centralization in the BUN may amplify financial instability. This work delivers the first comprehensive, data-driven analysis of structural centralization dynamics in Bitcoin’s actual user network.