Patterns of User Behavior and Token Adoption on ERC20
Name
42979_2023_2200_ReferencePDF.pdf
Size
1.13 MB
Format
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Checksum (MD5)
263ade6afa3c17c9e566f29f6d647f0c
Author(s)
Morales, Alfredo J.
Somin, Shahar
Altshuler, Yaniv
Pentland, Alex S.
Date Issued
September 29, 2023
Publisher
Springer Nature Singapore
Citation
SN Computer Science. 2023 Sep 29;4(6):753
Version
Author's final manuscript
Abstract
Abstract
Cryptocurrencies and Blockchain-based technologies are disrupting markets across the globe. While the potential development of such technologies remains unclear, there is a current need to understand emergent patterns of user behavior and token adoption in order to design future products and cryptocurrencies. In this paper, we analyze the social dynamics taking place on the Ethereum platform ERC20 during their daily operations. We study two months of transactions among users on ERC20 using network theory. We analyze structural properties of networks that emerge as users exchange digital tokens. Network science provides a framework to analyze the behavior of social groups, with emphasis on their interactions. We characterize user behaviors based on their network connectivity, portfolio diversity and patterns of token adoption. Our results show that while most users are specialized and transact with a few tokens, a few of them transact with diverse portfolios, bridging and interconnecting large parts of the network. We believe this work to be a foundation for unveiling the usage dynamics of cryptocurrencies networks.
MIT Department
Massachusetts Institute of Technology. Media Laboratory
MIT Connection Science (Research institute)
Terms of Use
Creative Commons Attribution-Noncommercial-Share Alike
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1007/s42979-023-02200-6
