An American professor of Mathematics Andrea baronchelli recently published a new study that reveals the relationship between the coding of cryptocurrency and its market behavior. The results of this study have been published in the journal science advances.
Dr. Andrea baronchelli and his colleagues analyzed 297 cryptocurrencies stored on GitHub, with an average daily transaction volume of more than $100000.
4% of developers participated in the coding of more than two cryptocurrencies
Their research shows that 4% of developers have participated in writing code for two or more cryptocurrencies. This raises further questions about the transparency of the coding process surrounding the creation of personal cryptocurrencies.
Dr. Andrea baronchelli said in his book from code to market: the relevant returns of developer networks and cryptocurrency, “in our paper, we questioned the view that open code gives cryptocurrency transparency. We have to admit that some users will carefully check it.”
Dr. baronchelli pointed out that the security, transferability, availability and other properties of encrypted assets are determined by the code that creates the encrypted assets. If the code is open source, like most cryptocurrencies, this principle can prevent manipulation and make users and traders transparent. However, this approach treats cryptocurrencies as isolated entities and ignores the possible links between them.
He insisted that regulators and professional investors should consider the entire cryptocurrency network to maximize portfolio diversification.
How do codes and algorithms affect non digital domains
Dr. baronchelli and his colleagues found that as of June 9, 2019, of the 2225 cryptocurrencies listed in coinmarketcap, 1668 shared their source code on GitHub.
In order to obtain all events related to the development of cryptocurrency GitHub project, Dr. baronchelli and his colleagues queried the GitHub archive dataset through Google bigquery, which stores all events in the public repository since 2011.
In particular, they queried two types of events: “push events” and accepted “pull request events”. Finally, they deleted all events triggered by GitHub application (software used to maintain and update the repository), and deleted all events with the word “bot” in the name from its dataset GitHub profile, To exclude users who have been identified or reported as non-human.
Baronchelli also collected the daily price, trading volume and market value of cryptocurrency from three different online sources. He said, “This work has broad significance. Cryptocurrency is an open-source digital object for financial asset trading. At least in theory, everyone can directly shape the asset structure and its market behavior. Our research identifies a simple event in the development space to predict the corresponding behavior in the market. From this perspective, we expect our research results It will arouse the interest of researchers who will study how codes and algorithms affect non digital fields and trigger further research in this field. “