Patterns and centralisation in Ethereum-based token transaction networks

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 tree...

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Bibliographic Details
Published in:Frontiers in physics 2024-12, Vol.12
Main Authors: Francesco Maria De Collibus, Carlo Campajola, Guido Caldarelli, Claudio J. Tessone
Format: Article
Language:English
Subjects:
blockchain
cryptocurrencies
ERC-20
ERC-721
Ethereum
token
Online Access:Get full text
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Summary: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.
ISSN:2296-424X
DOI:10.3389/fphy.2024.1305167