Patterns of User Behavior and Token Adoption on ERC20
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 fut...
| Main Authors: | , , , |
|---|---|
| Other Authors: | |
| Format: | Article |
| Language: | English |
| Published: |
Springer Nature Singapore
2023
|
| Online Access: | https://hdl.handle.net/1721.1/152359 |
| _version_ | 1811086745083576320 |
|---|---|
| author | Morales, Alfredo J. Somin, Shahar Altshuler, Yaniv Pentland, Alex S. |
| author2 | Massachusetts Institute of Technology. Media Laboratory |
| author_facet | Massachusetts Institute of Technology. Media Laboratory Morales, Alfredo J. Somin, Shahar Altshuler, Yaniv Pentland, Alex S. |
| author_sort | Morales, Alfredo J. |
| collection | MIT |
| description | 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. |
| first_indexed | 2024-09-23T13:32:54Z |
| format | Article |
| id | mit-1721.1/152359 |
| institution | Massachusetts Institute of Technology |
| language | English |
| last_indexed | 2024-09-23T13:32:54Z |
| publishDate | 2023 |
| publisher | Springer Nature Singapore |
| record_format | dspace |
| spelling | mit-1721.1/1523592024-01-05T19:01:37Z Patterns of User Behavior and Token Adoption on ERC20 Morales, Alfredo J. Somin, Shahar Altshuler, Yaniv Pentland, Alex S. Massachusetts Institute of Technology. Media Laboratory MIT Connection Science (Research institute) 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. 2023-10-03T19:19:46Z 2023-10-03T19:19:46Z 2023-09-29 2023-09-30T03:20:14Z Article http://purl.org/eprint/type/JournalArticle https://hdl.handle.net/1721.1/152359 SN Computer Science. 2023 Sep 29;4(6):753 en https://doi.org/10.1007/s42979-023-02200-6 Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/ The Author(s), under exclusive licence to Springer Nature Singapore Pte Ltd application/pdf Springer Nature Singapore Springer Nature Singapore |
| spellingShingle | Morales, Alfredo J. Somin, Shahar Altshuler, Yaniv Pentland, Alex S. Patterns of User Behavior and Token Adoption on ERC20 |
| title | Patterns of User Behavior and Token Adoption on ERC20 |
| title_full | Patterns of User Behavior and Token Adoption on ERC20 |
| title_fullStr | Patterns of User Behavior and Token Adoption on ERC20 |
| title_full_unstemmed | Patterns of User Behavior and Token Adoption on ERC20 |
| title_short | Patterns of User Behavior and Token Adoption on ERC20 |
| title_sort | patterns of user behavior and token adoption on erc20 |
| url | https://hdl.handle.net/1721.1/152359 |
| work_keys_str_mv | AT moralesalfredoj patternsofuserbehaviorandtokenadoptiononerc20 AT sominshahar patternsofuserbehaviorandtokenadoptiononerc20 AT altshuleryaniv patternsofuserbehaviorandtokenadoptiononerc20 AT pentlandalexs patternsofuserbehaviorandtokenadoptiononerc20 |