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dc.contributor.author
Lin, Jian-Hong
dc.contributor.author
Primicerio, Kevin
dc.contributor.author
Squartini, Tiziano
dc.contributor.author
Decker, Christian
dc.contributor.author
Tessone, Claudio J.
dc.date.accessioned
2021-08-07T10:26:35Z
dc.date.available
2021-08-01T19:50:40Z
dc.date.available
2021-08-07T10:26:35Z
dc.date.issued
2021-07
dc.identifier.issn
1367-2630
dc.identifier.other
10.1088/1367-2630/ac122d
en_US
dc.identifier.uri
http://hdl.handle.net/20.500.11850/498819
dc.identifier.doi
10.3929/ethz-b-000498819
dc.description.abstract
The bitcoin lightning network (BLN), a so-called 'second layer' payment protocol, was launched in 2018 to scale up the number of transactions between bitcoin owners. In this paper, we analyse the structure of the BLN over a period of 18 months, ranging from 12th January 2018 to 17th July 2019, at the end of which the network has reached 8.216 users, 122.517 active channels and 2.732,5 transacted bitcoins. Here, we consider three representations of the BLN: the daily snapshot one, the weekly snapshot one and the daily-block snapshot one. By studying the topological properties of the binary and weighted versions of the three representations above, we find that the total volume of transacted bitcoins approximately grows as the square of the network size; however, despite the huge activity characterising the BLN, the bitcoins distribution is very unequal: the average Gini coefficient of the node strengths (computed across the entire history of the Bitcoin Lightning Network) is, in fact, similar or equal to 0.88 causing the 10% (50%) of the nodes to hold the 80% (99%) of the bitcoins at stake in the BLN (on average, across the entire period). This concentration brings up the question of which minimalist network model allows us to explain the network topological structure. Like for other economic systems, we hypothesise that local properties of nodes, like the degree, ultimately determine part of its characteristics. Therefore, we have tested the goodness of the undirected binary configuration model (UBCM) in reproducing the structural features of the BLN: the UBCM recovers the disassortative and the hierarchical character of the BLN but underestimates the centrality of nodes; this suggests that the BLN is becoming an increasingly centralised network, more and more compatible with a core-periphery structure. Further inspection of the resilience of the BLN shows that removing hubs leads to the collapse of the network into many components, an evidence suggesting that this network may be a target for the so-called split attacks.
en_US
dc.format
application/pdf
en_US
dc.language.iso
en
en_US
dc.publisher
IoP Publishing
en_US
dc.rights.uri
http://creativecommons.org/licenses/by/4.0/
dc.subject
bitcoin lightning network
en_US
dc.subject
centralisation
en_US
dc.subject
core-periphery
en_US
dc.subject
inequality
en_US
dc.subject
null models
en_US
dc.title
Corrigendum: Lightning network: a second path towards centralisation of the bitcoin economy (2020 New J. Phys.22 083022)
en_US
dc.type
Other Journal Item
dc.rights.license
Creative Commons Attribution 4.0 International
dc.date.published
2021-07-22
ethz.journal.title
New Journal of Physics
ethz.journal.volume
23
en_US
ethz.journal.issue
7
en_US
ethz.journal.abbreviated
New J. Phys.
ethz.pages.start
079501
en_US
ethz.size
2 p.
en_US
ethz.version.deposit
publishedVersion
en_US
ethz.identifier.wos
ethz.publication.place
Bristol
en_US
ethz.publication.status
published
en_US
ethz.relation.references
10.3929/ethz-b-000438562
ethz.date.deposited
2021-08-01T19:51:38Z
ethz.source
WOS
ethz.eth
yes
en_US
ethz.availability
Open access
en_US
ethz.rosetta.installDate
2021-08-07T10:26:54Z
ethz.rosetta.lastUpdated
2022-03-29T10:58:48Z
ethz.rosetta.versionExported
true
ethz.COinS
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