A review of Blockchain Networks with a focus on what it means to be a network using the formal definition. Slides to go with the Article: https://medium.com/@michaelzargham/lets-talk-about-blockchain-networks-1c9f66aa0803

1. Blockchain “Networks”
Networks of Network of Network — but what is a Network?
@mZargham
Michael Zargham, PhD
Founder, BlockScience

2. Bitcoin Communication and Computation Network
Vertex = Node
Edge = peer relationship
between two nodes
Image source: https://blogs.msdn.microsoft.com/msdnmagazine/2008/07/14/state-sharing-in-a-peer-network-with-wpf/

3. Bitcoin Financial Network
Vertex = Address
Edge = relationship between
Addresses characterized by a
transaction existing that
modified both accounts

4. Relationships between Accounts and Nodes
Vertex = NodeVertex = Account
Edge = Node -> Account:
Node who finds a block mints
rewards an account
Edge = Account -> Node:
initiate a legal transaction by
proving identity with private key

5. Fiat Financial Network(s)
Vertex = Legal Identity
(person or business)
Edge = relationship between Identities
characterized by a transaction existing
Between these identities

6. Relationship between legal entities and addresses
Vertex = Identity
Vertex = Account
Edge = Identity -> Account:
An account is created by an
human (or software) acting as or
on behalf of a legal entity
Edge = Account -> Identity:
Private key of account is used to
Send digital assets in exchange
for fiat or services to the legal entity

7. The big picture
Legal Entities in the ‘Fiat Economy’
• A network of identities engaging in all manner
of legacy economic activity
Blockchain Network
• An economic network of addresses (public
keys) whose state variables evolve according
to rules enforced by the computation and
communication network.
• A computation and communication network of
nodes responsible for maintaining the state of
an economic network

8. …
Bitcoin Network Ethereum Network More Networks
Even Bigger Picture
Identity
mappings
Identity
mappings
Identity
mappings
Identity mappings are well defined even if
they are actually unknown
They are important part of understanding
or designing systems even when they
remain unobservable
Identity Mappings Further Imply
relationships between Blockchain networks
even when there are no explicit links
Network(s) of Legal Entities

9. Zooming in: Smart Contract enabled ‘Economies’
Highlighted Vertex
=
Smart contract Address
Neighborhood = subset
Addresses with edges defined by
transactions involving methods
of the smart contract
Vertex = Any address whose state is
maintained by the Ethereum Computation
and communication network
Edge = relationship between
Two Addresses characterized by a
transactions that involve the states or
methods of those two addresses
Example assumes Ethereum Network,
but applies for any general computation network

10. https://medium.com/
@michaelzargham/lets-talk-about-
blockchain-
networks-1c9f66aa0803