Visualization + Analysis Blockchains Are Networks Time-series - - PowerPoint PPT Presentation

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Visualization + Analysis Blockchains Are Networks Time-series - - PowerPoint PPT Presentation

Nov 09, 2023 39 likes •500 views

Visualization + Analysis Blockchains Are Networks Time-series Visualization Quickly spot properties Quickly spot inconsistencies Ask better questions This Lecture Analyze some properties of cryptocurrencies Tools

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SLIDE 1

Visualization + Analysis

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SLIDE 2

Blockchains Are

  • Networks
  • Time-series
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SLIDE 3

Visualization

  • Quickly spot properties
  • Quickly spot inconsistencies
  • Ask better questions
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SLIDE 4

This Lecture

  • Analyze some properties of cryptocurrencies
  • Tools
  • Data Sources
  • Insights
  • Sample code
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SLIDE 5

Distributions

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SLIDE 6

Distributions

  • Distributions of:
  • Transaction Fees
  • Wallet net worths
  • Bitcoin Script Usage
  • Whales
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SLIDE 7

Bitcoin Transaction Fees

  • BTC
  • Satoshi per byte
  • 100mn Satoshis = 1 BTC
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SLIDE 8

Ethereum Transaction Fees

  • ETH
  • Gas
  • 21000 Gas = Base fee
  • Just transferring funds
  • Put down Gas Price
  • Pay Gas Price * Gas Used
  • Put down Gas limit
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SLIDE 9

Bitcoin Transaction Fees

Fee Txns 8380 1 9407071 2 2841101 … ….

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SLIDE 10

Why Zeros?

  • Possibly:
  • Miners’ own transactions
  • Incredible generosity
  • Off-chain payment
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SLIDE 11

Most Common Fee

Fee Txns 1 9407071 3 7448408 4 2863087 … ….

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SLIDE 12

Distribution

  • Raw bar chart bad for viz (large variance).
  • Solution:
  • log/log plot
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SLIDE 13

Log-Log Plot

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SLIDE 14

Log-Log Plot

  • Seems like a truncated power law
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SLIDE 15

Power Laws

  • 80/20 Rule
  • Internet Networks
  • Traffic Arrival Times
  • Zipf
  • Twitter followers
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Ethereum Gas Prices

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SLIDE 17

log-normal?

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SLIDE 18

Ethereum Gas Prices

Fee Txns 121023 1 117 2 7 … ….

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SLIDE 19

Most Common Fee

Fee Txns 20000000000 11107198 1000000000 7354494 10000000000 7339890 … ….

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SLIDE 20

Zero Gas Prices?

  • https://www.reddit.com/r/ethereum/comments/7lx1do/

a_christmas_mystery_sweepers_and_zero_gas_price/

  • https://medium.com/chainsecurity/zero-gas-price-transactions-

what-they-do-who-creates-them-and-why-they-might- impact-scalability-aeb6487b8bb0

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SLIDE 21

Time-Series

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Correlate With Events

  • Correlation to fiat?
  • Correlation to other coins?
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Other Coins

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YTD

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Spearman’s Rank Correlation

Col1 Col2

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Spearman’s Rank Correlation

Col1 Col2 Rank=2 Rank=3 Rank=10 Rank=5 Rank=5 Rank=2 Rank=3 Rank=1

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SLIDE 27

Spearman’s Rank Correlation

  • Row-wise difference squared : d^2
  • Sum up these row-wise differences
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SLIDE 28

Spearman’s Rank Correlation

  • +1/-1 : Strong positive / Strong negative
  • 0 : No correlation
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SLIDE 29

Correlation Charts - Coins

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SLIDE 30

Correlation Charts - BTC v. Fiat

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So?

  • Looks like there is almost no correlation to fiat
  • Coins almost all move in lock-step
  • Implications?
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SLIDE 32

BTC Volume Events

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SLIDE 33

Network

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SLIDE 34

Visualizing Networks

  • Slightly complex with bitcoin
  • The Bitcoin graph:
  • Nodes: wallet addresses
  • Edges: Spends
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SLIDE 35

Visualizing Networks

  • Best practices contribute 1 or 2 nodes each transaction
  • In practice this seems to be 50%
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SLIDE 36

Degree Distributions

  • Seems to be power law:
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SLIDE 37

Ethereum

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SLIDE 38

Transaction Patterns

  • Fork-merge:
  • Large amount in wallet
  • Split into many smaller wallets
  • Finally after a long trip merged into single wallet
  • Binary tree-like structure:
  • Transaction + Change
  • Splitting your amount into 2
  • Long Chains
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SLIDE 39
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SLIDE 40

Insights From Degree

  • What about degree 1:
  • Likely money transferred to same individual
  • Large outdegree:
  • Possibly automated transaction
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GeoSpatial

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Hard Because

  • Many won’t expose an IP address
  • Many won’t respond to API calls that identify their address
  • Not very trustworthy
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SLIDE 44
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SLIDE 45

Visit At

  • https://blockchaincourse.onai.com/node_viz/
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SLIDE 46

Questions?