Complex Network Analysis of Crypto Currencies

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Authors

Popuri, Manoj K.

Issue Date

2015

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Thesis

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Bitcoin , Complex Network analysis , Crypto currency , Dogecoin , Litecoin , Namecoin

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Abstract

Analysis of the traditional currencies is not easy as the transactions are not centralized but rather take place over a large number of banks and commercial entities. Digital crypto currencies, however, require a public ledger to work. A crypto currency is a medium of exchange using cryptography to secure the trans- actions and to control the creation of new units. In this thesis, we analyze some of the popular crypto currencies. As the transaction data of crypto currencies are publicly available, we construct a network of transactions and extract the time and date of each payment for the analyzed crypto currencies. We investigate the structure of transaction network by measuring the network characteristics. In par- ticular, we compare the evolution of Bitcoin and Litecoin currency systems, two of the currently most popular systems; analyze the wealth correlation with degree distribution for Bitcoin and litecoin; and investigate the transactions by the top 100 richest people in Bitcoin, Litecoin, Dash, Dogecoin, Peercoin, and Namecoin crypto currencies. Additionally, as the price of digital currencies are highly volatile, we perform a regression analysis on factors that affect the price of the Bitcoin currency in USD and derive a model with the factors that affects Bitcoin price.

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In Copyright(All Rights Reserved)

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