NETWORK ANALYSIS OF ETHEREUM LAYER 2

Abstract

The cryptocurrency market has experienced remarkable growth and garnered widespread attention in recent years. Ethereum, as one of the most well-known cryptocurrencies, has faced criticism for its network congestion and high transaction fees. To address this issue, developers have proposed various scalability solutions. In this paper, we compare two different network solutions, Polygon and Arbitrum, to the Ethereum. Based on the research methodology of complex networks, this study encompasses various stages ranging from data collection and processing to the modeling and analysis of transaction networks. Our findings reveal that Arbitrum shows an advantage over Polygon when comparing the networks at the same transaction volume. With sufficient development, Rollups has the potential to become the preferred scaling solution for Ethereum. Additionally, our analysis illustrates that all transaction networks exhibit a small-world phenomenon when they reach a significant size.