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Modeling the Dynamics of Bitcoin Overlay Network

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Complex Networks & Their Applications XII (COMPLEX NETWORKS 2023)

Part of the book series: Studies in Computational Intelligence ((SCI,volume 1143))

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Abstract

The world economy is experiencing the novel adoption of distributed currencies that are free from the control of central banks. Distributed currencies suffer from extreme volatility, and this can lead to catastrophic implications during future economic crisis. Understanding the dynamics of this new type of currencies is vital for empowering supervisory bodies to behave proactively as well-informed planners rather than reactively as incident responders. Bitcoin, the first and dominant distributed cryptocurrency, is still notoriously vague, especially for a financial instrument with market value exceeding $1 trillion. Modeling the Bitcoin Overlay Network poses a number of important theoretical and methodological challenges. This drastically undermines the ability to predict key features such as network’s resilience. In this work, we developed Evolutionary Random Graph, a theoretical model that describes the network of bitcoin miners. The correctness of this model has been validated using real and simulated bitcoin data.

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Author information

Authors and Affiliations

  1. University of Cincinnati, Cincinnati, OH, USA

    Jacques Bou Abdo

  2. University of Louisiana at Lafayette, Lafayette, LA, USA

    Shuvalaxmi Dass

  3. University of Nebraska at Kearney, Kearney, NE, USA

    Basheer Qolomany & Liaquat Hossain

Authors
  1. Jacques Bou Abdo
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  2. Shuvalaxmi Dass
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  3. Basheer Qolomany
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  4. Liaquat Hossain
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Corresponding author

Correspondence to Jacques Bou Abdo .

Editor information

Editors and Affiliations

  1. University of Burgundy, Dijon Cedex, France

    Hocine Cherifi

  2. Thomas J. Watson College of Engineering and Applied Science, Binghamton University, Binghamton, NY, USA

    Luis M. Rocha

  3. IUT Lumière - Université Lyon 2, University of Lyon, Bron, France

    Chantal Cherifi

  4. Department of Economics, Yildiz Technical University, Istanbul, Türkiye

    Murat Donduran

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Bou Abdo, J., Dass, S., Qolomany, B., Hossain, L. (2024). Modeling the Dynamics of Bitcoin Overlay Network. In: Cherifi, H., Rocha, L.M., Cherifi, C., Donduran, M. (eds) Complex Networks & Their Applications XII. COMPLEX NETWORKS 2023. Studies in Computational Intelligence, vol 1143. Springer, Cham. https://doi.org/10.1007/978-3-031-53472-0_31

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  • DOI: https://doi.org/10.1007/978-3-031-53472-0_31

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-031-53471-3

  • Online ISBN: 978-3-031-53472-0

  • eBook Packages: EngineeringEngineering (R0)

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