Bitcoin: SEIR-C Propagation Models of Block and Transaction Dissemination
25 Pages Posted: 2 Apr 2018
Date Written: March 28, 2017
Bitcoin can be modelled using the mathematics of biological systems. SEIR and SEIR-C models capture the propagation of transactions and blocks within the bitcoin network. With systems reacting as a susceptible or immune carrier, we can model the forces driving cycles of recurrent states. We demonstrate that we can analyse numerically the bitcoin network using a susceptible/exposed/infective/recovered (SEIR) epidemic model with seasonal transmission. Here, the system expresses a periodicity related to the discovery and propagation of blocks that can be extended into a competing epidemic model where blocks are discovered at a similar time or when transactions are double spent. In this paper, we introduce the concept of an SEIR model into the Bitcoin system and demonstrate how this can help in understanding the system.
Keywords: Bitcoin, SEIR
JEL Classification: COMP
Suggested Citation: Suggested Citation