In particular, it is possible to examine a real network of financial transactions for each cryptocurrency. As a result, it is possible to analyze transactions in these currencies from different aspects and perform a variety of statistical analyses on them. Using the blockchain data of each of these currencies, the transactions in which they occur can be accessed. In all of the mentioned cryptocurrencies, the ability to transfer money is the basic and common core capability. Z-Cash is a highly secure cryptocurrency that uses zero-knowledge proofs, as a result of which privacy and anonymity of users is significantly enhanced ( Hopwood et al. Similar to Litecoin, Dash has a separate blockchain, with transactions speed 4 times faster than Bitcoin. Dash is another cryptocurrency which is quite similar to Bitcoin and uses the X11 hashing algorithm for proof of work ( Duffield and Diaz 2014). Litecoin is created as a hard fork of Bitcoin, and has a separate blockchain. For example, Litecoin uses the Scrypt hash function instead of SHA256 for proof of work, and records transactions in the blockchain four times faster than Bitcoin. Litecoin is also one of the earliest cryptocurrencies that is technically very similar to Bitcoin and has only slight differences with it ( Litecoin 2019). It is one of the most influential and widely-used cryptocurrencies introduced after Bitcoin. Ethereum was introduced by Vitalik Buterin in 2015 and is the first blockchain-based distributed computing platform to consider the concept of exe- cutable smart contracts ( Buterin 2014). Subsequently, other cryptocurrencies, which are usually referred to as altcoins, were created by adding more capabilities and offering alternative design criteria. This level of security is guaranteed by cryptographic algorithms, and as long as these algorithms are secure, cryptocurrencies integrity is protected.īitcoin is the first cryptocurrency created by an anonymous person or group of people by the nickname Satoshi Nakamoto, which established a decentralized money transfer system using blockchain ( Nakamoto 2008). Although the system is running by anonymous people, due to computational infeasibility of forging digital signatures and security of cryptography algorithms, transaction alteration is almost impossible. The tasks of recording, updating, and maintaining the blockchain is the responsibility of network users for each coin, whose identities are unknown, and rewards have been created to provide them with sufficient incentives to do so, making the network up and running. All transaction information of a cryptocurrency is usually stored in a distributed public ledger, named blockchain. Despite this transparency, people’s identities are hidden, and they can transact anonymously. addresses do not tend for transact with a particular type of addresses of higher or lower degree, and the degree sequence of their transaction graph follows the power law distribution.Ĭryptocurrencies have made it possible for a financial system to perform transactions without the need for a centralized authority while keeping the transaction details and money generation clear and publicly available. We also found that the transaction graph of these currencies is non-assortative, i.e. In particular, we observed that the growth rate of the nodes and edges of the transaction graphs, and the density of these graphs, are closely related to the price of these currencies. In this study, we intend to compare the transaction graph of Bitcoin, Ethereum, Litecoin, Dash, and Z-Cash, with respect to the dynamics of their transaction graphs over time, and discuss their properties. However, previous statistical analysis on cryptocurrencies transactions have been very limited and mostly devoted to Bitcoin, with no comprehensive comparison between these currencies. Transactions in cryptocurrencies are publicly available, hence, statistical studies on different aspects of these currencies are possible. Cryptocurrencies as a new way of transferring assets and securing financial transactions have gained popularity in recent years.
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