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In this work, we investigate the structure and evolution of a peer-to-peer (P2P) payment application. A unique aspect of the network under consideration is that the edges among nodes represent financial transactions among individuals who…

Social and Information Networks · Computer Science 2018-06-19 Pantelis Loupos , Alexandros Nathan

We present a methodology to extract the backbone of complex networks based on the weight and direction of links, as well as on nontopological properties of nodes. We show how the methodology can be applied in general to networks in which…

General Finance · Quantitative Finance 2010-06-23 J. B. Glattfelder , S. Battiston

The Lightning Network, known for its millisecond settlement speeds and low transaction fees, offers a compelling alternative to traditional payment processors, which often have higher fees and longer processing times. This is particularly…

Cryptography and Security · Computer Science 2023-12-08 Jeffy Yu

Transactional network data can be thought of as a list of one-to-many communications(e.g., email) between nodes in a social network. Most social network models convert this type of data into binary relations between pairs of nodes. We…

Machine Learning · Statistics 2010-10-08 Mahdi Shafiei , Hugh Chipman

Recently, graph embedding techniques have been widely used in the analysis of various networks, but most of the existing embedding methods omit the network dynamics and the multiplicity of edges, so it is difficult to accurately describe…

Social and Information Networks · Computer Science 2021-01-07 Jiajing Wu , Dan Lin , Zibin Zheng , Qi Yuan

Classic measures of graph centrality capture distinct aspects of node importance, from the local (e.g., degree) to the global (e.g., closeness). Here we exploit the connection between diffusion and geometry to introduce a multiscale…

Physics and Society · Physics 2020-07-29 Alexis Arnaudon , Robert L. Peach , Mauricio Barahona

We present a Bayesian formulation of weighted stochastic block models that can be used to infer the large-scale modular structure of weighted networks, including their hierarchical organization. Our method is nonparametric, and thus does…

Machine Learning · Statistics 2018-01-24 Tiago P. Peixoto

Over the last two decades, financial systems have been studied and analysed from the perspective of complex networks, where the nodes and edges in the network represent the various financial components and the strengths of correlations…

Statistical Finance · Quantitative Finance 2021-02-02 Areejit Samal , Sunil Kumar , Yasharth Yadav , Anirban Chakraborti

Complex networks have gained more attention from the last few years. The size of real-world complex networks, such as online social networks, WWW network, collaboration networks, is increasing exponentially with time. It is not feasible to…

Social and Information Networks · Computer Science 2019-10-08 Akrati Saxena , Vaibhav Malik , S. R. S. Iyengar

A variety of scale-free networks have been created since the pioneer work by A.-L. Barab\'{a}si and R. Albert. All this networks are homogeneous since they are composed of the same kind of nodes. In the realistic world, however, one element…

Disordered Systems and Neural Networks · Physics 2009-11-11 Shi-Jie Yang , Hu Zhao

Payment channel networks (PCNs) are viewed as one of the most promising scalability solutions for cryptocurrencies today. Roughly, PCNs are networks where each node represents a user and each directed, weighted edge represents funds…

Cryptography and Security · Computer Science 2020-10-22 Weizhao Tang , Weina Wang , Giulia Fanti , Sewoong Oh

The statistical mechanical approach to complex networks is the dominant paradigm in describing natural and societal complex systems. The study of network properties, and their implications on dynamical processes, mostly focus on locally…

Statistical Mechanics · Physics 2013-06-27 Giovanni Petri , Martina Scolamiero , Irene Donato , Francesco Vaccarino

Large scale simulations of the movements of people in a ``virtual'' city and their analyses are used to generate new insights into understanding the dynamic processes that depend on the interactions between people. Models, based on these…

Physics and Society · Physics 2016-09-08 Gerardo Chowell , James M. Hyman , Stephen Eubank , Carlos Castillo-Chavez

We study a model of wealth dynamics [Bouchaud and M\'ezard 2000, \emph{Physica A} \textbf{282}, 536] which mimics transactions among economic agents. The outcomes of the model are shown to depend strongly on the topological properties of…

Disordered Systems and Neural Networks · Physics 2009-02-06 D. Garlaschelli , M. I. Loffredo

The Bitcoin Lightning Network is a layer 2 protocol designed to facilitate fast and inexpensive Bitcoin transactions. It operates by establishing channels between users, where Bitcoin is locked and transactions are conducted off-chain until…

Cryptography and Security · Computer Science 2024-07-12 Rainer Feichtinger , Florian Grötschla , Lioba Heimbach , Roger Wattenhofer

Motivated by a recently introduced network growth mechanism that rely on the ranking of node prestige measures [S. Fortunato \emph{et al}., Phys. Rev. Lett. \textbf{96}, 218701 (2006)], a rank-based model for weighted network evolution is…

Disordered Systems and Neural Networks · Physics 2015-06-25 Liang Tian , Da-Ning Shi , Chen-Ping Zhu

The large-scale organization of the world economies is exhibiting increasingly levels of local heterogeneity and global interdependency. Understanding the relation between local and global features calls for analytical tools able to uncover…

General Finance · Quantitative Finance 2008-12-10 M. Angeles Serrano , Marian Boguna , Alessandro Vespignani

Economy, and consequently trade, is a fundamental part of human social organization which, until now, has not been studied within the network modelling framework. Networks are mathematical tools used in the modelling of a wide variety of…

Disordered Systems and Neural Networks · Physics 2009-11-10 M. Angeles Serrano , Marian Boguna

Networks are powerful instruments to study complex phenomena, but they become hard to analyze in data that contain noise. Network backbones provide a tool to extract the latent structure from noisy networks by pruning non-salient edges. We…

Physics and Society · Physics 2017-01-26 Michele Coscia , Frank Neffke

Traditionally, distributed and parallel transactional systems have been studied in isolation, as they targeted different applications and experienced different bottlenecks. However, modern high-bandwidth networks have made the study of…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-08-09 Naama Ben-David , Gal Sela , Adriana Szekeres
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