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Analyzing outliers activity from the time-series transaction pattern of bitcoin blockchain

Author

Listed:
  • Rubaiyat Islam

    (University of Hyogo)

  • Yoshi Fujiwara

    (University of Hyogo)

  • Shinya Kawata

    (University of Hyogo
    CMD Lab, Inc.)

  • Hiwon Yoon

    (CMD Lab, Inc.)

Abstract

In a closed economic system like blockchain, the total amount of generated cryptocurrency called bitcoin is conserved and the transaction patterns demonstrate an insight of money flow inside the blockchain. For the last 2 years, bitcoin market has grabbed an immense attention from the investors, technology entrepreneurs and currency enthusiasts. In this paper, we have come up with some findings in our investigation about the bitcoin time-series transaction patterns. We have graphically represented bitcoin’s weekly patterns as a real economic currency that has been minted, stored and exchanged inside the bitcoin blockchain network. We identified outliers’ activities with the help of descriptive statistical analysis. We also demonstrated transaction pattern behavioral change. The main implication of these findings is to understand some stylized facts of the time-series transaction of cryptocurrency-based fully digital financial system. Besides in our analysis, we have shown that the behavioral change of the transaction pattern is capable of explaining the system development events or major historical events that have a network impact.

Suggested Citation

  • Rubaiyat Islam & Yoshi Fujiwara & Shinya Kawata & Hiwon Yoon, 2019. "Analyzing outliers activity from the time-series transaction pattern of bitcoin blockchain," Evolutionary and Institutional Economics Review, Springer, vol. 16(1), pages 239-257, June.
    • Handle: RePEc:spr:eaiere:v:16:y:2019:i:1:d:10.1007_s40844-018-0107-8
    DOI: 10.1007/s40844-018-0107-8
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    References listed on IDEAS

    as
    1. D'aniel Kondor & M'arton P'osfai & Istv'an Csabai & G'abor Vattay, 2013. "Do the rich get richer? An empirical analysis of the BitCoin transaction network," Papers 1308.3892, arXiv.org, revised Mar 2014.
    2. Dániel Kondor & Márton Pósfai & István Csabai & Gábor Vattay, 2014. "Do the Rich Get Richer? An Empirical Analysis of the Bitcoin Transaction Network," PLOS ONE, Public Library of Science, vol. 9(2), pages 1-10, February.
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    Citations

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    Cited by:

    1. Yoshi Fujiwara & Rubaiyat Islam, 2021. "Bitcoin's Crypto Flow Network," Papers 2106.11446, arXiv.org, revised Jul 2021.
    2. Yuichi Ikeda, 2019. "Special feature: Econophysics 2017: synergetic fusion of econophysics and other fields of science—Part II," Evolutionary and Institutional Economics Review, Springer, vol. 16(1), pages 181-182, June.
    3. Hideaki Aoyama, 2021. "XRP Network and Proposal of Flow Index," Papers 2106.10012, arXiv.org.
    4. Rubaiyat Islam & Yoshi Fujiwara & Shinya Kawata & Hiwon Yoon, 2021. "Unfolding identity of financial institutions in bitcoin blockchain by weekly pattern of network flows," Evolutionary and Institutional Economics Review, Springer, vol. 18(1), pages 131-157, April.

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    More about this item

    Keywords

    Bitcoin; Blockchain; Financial transaction; Cryptocurrency-economy;
    All these keywords.

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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