Nodes in the Bitcoin Network: Comparative Measurement Study and Survey

Abstract

Bitcoin is a decentralized digital currency that has gained significant attention and growth in recent years. Unlike traditional currencies, Bitcoin does not rely on a centralized authority to control the supply, distribution, and verification of the validity of transactions. Instead, Bitcoin relies on a peer-to-peer (P2P) network of volunteers to distribute pending transactions and confirmed blocks, to verify transactions, and to collectively implement a replicated ledger that everyone agrees on. This P2P network is at the heart of Bitcoin and many other blockchain technologies. In this paper, we present a comparative measurement study of nodes in the Bitcoin network. We measure and analyze how many the so-called “volunteers” are in the Bitcoin P2P network by scanning the live Bitcoin network for 37 days in 2018 and compare them with the data reported by prior work in 2013~2016. This paper is motivated by the fact that Bitcoin has experienced explosive growth in terms of a number of users, transactions, value, and interest over a recent couple of years. Our investigation includes the IP addresses of Bitcoin nodes, size of the network, power law in the geographic distribution, protocol, and client versions, and network latencies and shows how today's network is different from early days. In addition, based on the observations made from the measurement study, we propose a simple distance-based peer selection rule for improved connectivity and faster data propagation. The evaluation results show that our proposed lightweight and backward-compatible peer selection rule has the potential to reduce data dissemination latency.