Contributions published at Blockchain and Distributed Ledger Technologies (Claudio Tessone)

Time-stamped data are increasingly available for many social, economic, and information systems that can be represented as networks growing with time. The World Wide Web, social contact networks, and citation networks of scientific papers and online news articles, for example, are of this kind. Static methods can be inadequate for the analysis of growing networks as they miss essential information on the system's dynamics. At the same time, time-aware methods require the choice of an observation timescale, yet we lack principled ways to determine it. We focus on the popular community detection problem which aims to partition a network's nodes into meaningful groups. We use a multi-layer quality function to show, on both synthetic and real datasets, that the observation timescale that leads to optimal communities is tightly related to the system's intrinsic aging timescale that can be inferred from the time-stamped network data. The use of temporal information leads to drastically different conclusions on the community structure of real information networks, which challenges the current understanding of the large-scale organization of growing networks. Our findings indicate that before attempting to assess structural patterns of evolving networks, it is vital to uncover the timescales of the dynamical processes that generated them.

Values—the motivational goals that define what is important to us—guide our decisions and actions every day. Their importance is established in a long line of research investigating their universality across countries and their evolution from childhood to adulthood. In adolescence, value structures are subject to substantial change, as life becomes increasingly social. Value change has thus far been understood to operate independently within each person. However, being embedded in various social systems, adolescents are constantly subject to social influence from peers. Thus, we introduce a framework investigating the emergence and evolution of value priorities in the dynamic context of friendship networks. Drawing on stochastic actor-oriented network models, we analyze 73 friendship networks of adolescents. Regarding the evolution of values, we find that adolescents’ value systems evolve in a continuous cycle of internal validation through the selection and enactment of goals—thereby experiencing both congruence and conflicts—and external validation through social comparison among their friends. Regarding the evolution of friendship networks, we find that demographics are more salient for the initiation of new friendships, whereas values are more relevant for the maintenance of existing friendships.

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One of the most challenging problems in technological forecasting is to identify as early as possible those technologies that have the potential to lead to radical changes in our society. In this paper, we use the US patent citation network (1926–2010) to test our ability to early identify a list of expert-selected historically significant patents through citation network analysis. We show that in order to effectively uncover these patents shortly after they are issued, we need to go beyond raw citation counts and take into account both the citation network topology and temporal information. In particular, an age-normalized measure of patent centrality, called rescaled PageRank, allows us to identify the significant patents earlier than citation count and PageRank score. In addition, we find that while high-impact patents tend to rely on other high-impact patents in a similar way as scientific papers, the patents' citation dynamics is significantly slower than that of papers, which makes the early identification of significant patents more challenging than that of significant papers. In the context of technology management, our rescaled metrics can be useful to early detect recent trends in technical improvement, which is of fundamental interest for companies and investors.

Cryptocurrencies are distributed systems that allow exchanges of native tokens among par-ticipants, or the exchange of such tokens for fiat currencies in markets external to these public ledgers. The availability of their complete historical bookkeeping opens up the possibility of understanding the relationship between aggregated users’ behaviour and the cryptocur-rency pricing in exchange markets. This paper analyses the properties of the transaction network of Bitcoin. We consider four different representations of it, over a period of nine years since the Bitcoin creation and involving 16 million users and 283 million transactions. By analysing these networks, we show the existence of causal relationships between Bitcoin price movements and changes of its transaction network topology. Our results reveal the in-terplay between structural quantities, indicative of the collective behaviour of Bitcoin users, and price movements, showing that, during price drops, the system is characterised by a larger heterogeneity of nodes activity.

The observed architecture of ecological and socio-economic networks differssignificantly from that of random networks. From a network science standpoint, non-random structural patterns observed in real networks call for an explanation of their emergence and an understanding of their potential systemic consequences. This article focuses on one of these patterns: nestedness. Given a network of interacting nodes, nestedness can be described as the tendency for nodes to interact with subsets of the interaction partners of better-connected nodes. Known since more than 80 years in biogeography, nestedness has been found in systems as diverse as ecological mutualistic systems, world trade, inter-organizational relations, among many others. This review article focuses on three main pillars: the existing methodologies to observe nestedness in networks; the main theoretical mechanisms conceived to explain the emergence of nestedness in ecological and socio-economic networks; the implications of a nested topology of interactions for the stability and feasibility of a given interacting system. We survey results from variegated disciplines, including statistical physics, graph theory, ecology, and theoretical economics. Nestedness was found to emerge both in bipartite networks and, more recently, in unipartite ones; this review is the first comprehensive attempt to unify both streams of studies, usually disconnected from each other. We believe that the truly interdisciplinary endeavor – while rooted in a complex systems perspective – may inspire new models and algorithms whose realm of application will undoubtedly transcend disciplinary boundaries.

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When investigating the spreading of a piece of information or the diffusion of an innovation, we often lack information on the underlying propagation network. Reconstructing the hidden propagation paths based on the observed diffusion process is a challenging problem which has recently attracted attention from diverse research fields. To address this reconstruction problem, based on static similarity metrics commonly used in the link prediction literature, we introduce new node-node temporal similarity metrics. The new metrics take as input the time-series of multiple independent spreading processes, based on the hypothesis that two nodes are more likely to be connected if they were often infected at similar points in time. This hypothesis is implemented by introducing a time-lag function which penalizes distant infection times. We find that the choice of this time-lag function strongly affects the metrics’ reconstruction accuracy, depending on the network’s clustering coefficient, and we provide an extensive comparative analysis of static and temporal similarity metrics for network reconstruction. Our findings shed new light on the notion of similarity between pairs of nodes in complex networks.

When users search online for content, they are constantly exposed to rankings. For example, web search results are presented as a ranking of relevant websites, and online bookstores often show us lists of best-selling books. While popularity-based ranking algorithms (like Google’s PageRank) have been extensively studied in previous works, we still lack a clear understanding of their potential systemic consequences. In this work, we fill this gap by introducing a new model of network growth that allows us to compare the properties of networks generated under the influence of different ranking algorithms. We show that by correcting for the omnipresent age bias of popularity-based ranking algorithms, the resulting networks exhibit a significantly larger agreement between the nodes’ inherent quality and their long-term popularity, and a less concentrated popularity distribution. To further promote popularity diversity, we introduce and validate a perturbation of the original rankings where a small number of randomly-selected nodes are promoted to the top of the ranking. Our findings move the first steps toward a model-based understanding of the long-term impact of popularity-based ranking algorithms, and our novel framework could be used to design improved information filtering tools.

Influential nodes in complex networks are typically defined as those nodes that maximize the asymptotic reach of a spreading process of interest. However, for practical applications such as viral marketing and online information spreading, one is often interested in maximizing the reach of the process in a short amount of time. The traditional definition of influencers in network-related studies from diverse research fields narrows down the focus to the late-time state of the spreading processes, leaving the following question unsolved: which nodes are able to initiate large-scale spreading processes, in a limited amount of time? Here, we find that there is a fundamental difference between the nodes – which we call “fast influencers” – that initiate the largest-reach processes in a short amount of time, and the traditional, “late-time” influencers. Stimulated by this observation, we provide an extensive benchmarking of centrality metrics with respect to their ability to identify both the fast and late-time influencers. We find that local network properties can be used to uncover the fast influencers. In particular, a parsimonious, local centrality metric (which we call social capital) achieves optimal or nearly-optimal performance in the fast influencer identification for all the analyzed empirical networks. Local metrics tend to be also competitive in the traditional, late-time influencer identification task.

A comparative study across the most widely known blockchain technologies is conducted with a bottom-up approach. Blockchains are deconstructed into their building blocks. Each building block is then hierarchically classified into main and subcomponents. Then, varieties of the subcomponents are identified and compared. A taxonomy tree is used to summarise the study and provide a navigation tool across different blockchain architectural configurations.

The range of application of methodologies of complexity science, interdisciplinary by nature, has spread even more broadly across disciplines after the dawn of this century. Specifically, applications to public policy and corporate strategies have proliferated in tandem. This paper reviews the most used complex systems methodologies with an emphasis on public policy. We briefly present examples, pros, and cons of agent-based modeling, network models, dynamical systems, data mining, and evolutionary game theory. Further, we illustrate some specific experiences of large applied projects in macroeconomics, urban systems, and infrastructure planning. We argue that agent-based modeling has established itself as a strong tool within scientific realm. However, adoption by policy-makers is still scarce. Considering the huge amount of exemplary, successful applications of complexity science across the most varied disciplines, we believe policy is ready to become an actual field of detailed and useful applications.

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Recent research reports the need for consistent incentives in blockchain-based systems. In this study, we investigate how incentives for a blockchain-based inter-organizational network should be designed to ensure a high quality of data, exchanged and stored within the network. For this, we use two complementary methodological approaches: an Action Design Research approach in combination with agent-based modelling, and demonstrate, through the example of a real-world blockchain project, how such an incentive system may be modelled. The proposed incentive system features a rating mechanism influenced by measures of data correction. We evaluate the incentive system in a simulation to show how effective the system is in terms of sustaining a high quality of data. Thus, the paper contributes to our understanding of incentives in inter- organizational settings and, more broadly, to our understanding of incentive mechanisms in blockchain economy.

A pivotal idea in network science, marketing research, and innovation diffusion theories is that a small group of nodes—called influencers—have the largest impact on social contagion and epidemic processes in networks. Despite the long-standing interest in the influencers identification problem in socioeconomic and biological networks, there is not yet agreement on which is the best identification strategy. State-of-the-art strategies are typically based either on heuristic centrality measures or on analytic arguments that only hold for specific network topologies or peculiar dynamical regimes. Here, we leverage the recently introduced random-walk effective distance—a topological metric that estimates almost perfectly the arrival time of diffusive spreading processes on networks—to introduce a centrality metric which quantifies how close a node is to the other nodes. We show that the new centrality metric significantly outperforms state-of-the-art metrics in detecting the influencers for global contagion processes. Our findings reveal the essential role of the network effective distance for the influencers identification and lead us closer to the optimal solution of the problem.

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Identifying and explaining the structure of complex networks at different scales has become an important problem across disciplines. At the mesoscale, modular architecture has attracted most of the attention. At the macroscale, other arrangements --e.g. nestedness or core-periphery-- have been studied in parallel, but to a much lesser extent. However, empirical evidence increasingly suggests that characterizing a network with a unique pattern typology may be too simplistic, since a system can integrate properties from distinct organizations at different scales. Here, we explore the relationship between some of those organizational patterns: two at the mesoscale (modularity and in-block nestedness); and one at the macroscale (nestedness). We analytically show that nestedness can be used to provide approximate bounds for modularity, with exact results in an idealized scenario. Specifically, we show that nestedness and modularity are antagonistic. Furthermore, we evince that in-block nestedness provides a parsimonious transition between nested and modular networks, taking properties of both. Far from a mere theoretical exercise, understanding the boundaries that discriminate each architecture is fundamental, to the extent modularity and nestedness are known to place heavy constraints on the stability of several dynamical processes, specially in ecology.

Real networks typically studied in various research fields—ecology and economic complexity, for example—often exhibit a nested topology, which means that the neighborhoods of high-degree nodes tend to include the neighborhoods of low-degree nodes. Focusing on nested networks, we study the problem of link prediction in complex networks, which aims at identifying likely candidates for missing links. We find that a new method that takes network nestedness into account outperforms well-established link-prediction methods not only when the input networks are sufficiently nested, but also for networks where the nested structure is imperfect. Our study paves the way to search for optimal methods for link prediction in nested networks, which might be beneficial for World Trade and ecological network analysis