[Resource Topic] 2024/1357: Understanding the Blockchain Interoperability Graph based on Cryptocurrency Price Correlation

Welcome to the resource topic for 2024/1357

Title:
Understanding the Blockchain Interoperability Graph based on Cryptocurrency Price Correlation

Authors: Ori Mazor, Ori Rottenstreich

Abstract:

Cryptocurrencies have gained high popularity in
recent years, with over 9000 of them, including major ones such
as Bitcoin and Ether. Each cryptocurrency is implemented on
one blockchain or over several such networks. Recently, various
technologies known as blockchain interoperability have been
developed to connect these different blockchains and create an
interconnected blockchain ecosystem. This paper aims to provide
insights on the blockchain ecosystem and the connection between
blockchains that we refer to as the interoperability graph. Our
approach is based on the analysis of the correlation between
cryptocurrencies implemented over the different blockchains.
We examine over 4800 cryptocurrencies implemented on 76
blockchains and their daily prices over a year. This experimental
study has potential implications for decentralized finance (DeFi),
including portfolio investment strategies and risk management.

ePrint: https://eprint.iacr.org/2024/1357

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