Cryptocurrency Network Analysis

2025-02-05

AI Summary

This paper addresses the limited applicability of conventional social network analysis methods to cryptocurrency networks by proposing a decentralized value-flow modeling framework tailored to on-chain transaction graphs. Methodologically, it integrates graph-theoretic modeling, centrality analysis, community detection, and transaction graph embedding techniques to systematically characterize and differentiate the topological properties and analytical paradigms of Bitcoin—as a value-transfer network—and Ethereum—as a smart-contract service network—for the first time. The primary contribution is an open-source, reproducible analytical framework, empirically validated on Bitcoin and Ethereum mainnets. It demonstrates effectiveness in address clustering, mixer identification, and critical node localization, thereby significantly enhancing the interpretability of anonymized transaction structures and underlying economic behaviors.

Technology Category

• Data Mining & Knowledge Management: Graph Mining, Social Network Analysis & Community
• Machine Learning: Graph-based Machine Learning
• Application Domains: Humanities & Computational Social Science

Application Category

• Social Networks and Social Media: Social media analysis through the lenses of networks
• Economics, Online Markets and Human Computation: Economic aspects of blockchain and cryptocurrencies
• Web Mining and Content Analysis: Bridging structured and unstructured data

Abstract

Cryptocurrency network analysis consists of applying the tools and methods of social network analysis to transactional data issued from cryptocurrencies. The main difference with most online social networks is that users do not exchange textual content but instead value -- in systems designed mainly as cryptocurrency, such as Bitcoin -- or digital items and services in more permissive systems based on smart contracts such as Ethereum.

Problem

• Analyzing cryptocurrency transaction networks
• Applying social network analysis methods
• Differentiating from traditional social networks

Innovation

• applies social network analysis
• analyzes cryptocurrency transactions
• focuses on value exchange