Work

Patterns and centralisation in Ethereum-based token transaction networks

Year: 2024

Type: article

Abstract: We explore patterns, regularities, and correlations in the evolving landscape of Ethereum-based tokens, both ERC-20 (fungible) and ERC-721 (non-fungible) to understand the factors contributing to the rise in certain tokens over others. By applying network science methodologies, minimum spanning trees, econometric autoregressive–moving-average (ARMA) models, and the study of accumulation processes, we are able to highlight a rising centralisation process. Not only do “rich” tokens get richer, but past transactions also emerge as more reliable predictors of new transactions. Our findings are validated across different samples of tokens.

Source: Frontiers in Physics

DOI: 10.3389/fphy.2024.1305167

Authors: Francesco Maria De Collibus, Carlo Campajola, Guido Caldarelli, Claudio J. Tessone

Institutions: University of Zurich, University College London, Royal Institution of Great Britain, Ca' Foscari University of Venice, London Institute for Mathematical Sciences, European Centre for Living Technology, Institute for Complex Systems, National Research Council

Language: English

Topic: Complex Systems and Time Series Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $2,795

OpenAlex ID: W4405004994

FWCI: 2.124

Cites: 38

Cited by: 6

Related to: 10