Lightnings over rose bouquets: An analysis of the topology of the Bitcoin Lightning Network

The Lightning Network is a P2P overlay that allows two Bitcoin users to create a new payment channel with a transaction, and later exchange cryptocurrency on that channel independently from the Bitcoin blockchain, improving Bitcoin’s scalability issues and making it more suitable for frequent micro-payments. Moreover, the channels can also be used to route payments between two users who do not share a direct channel themselves. In this paper we study the topology of the Lightning Network in a given time period, performing a number of analysis on the channels and on the nodes composing the network. We study the churn rate, we evaluate centrality measurements and the clustering coefficient to evaluate the network connectivity, and finally we analyze the presence of a pattern that we named “bouquet”. The importance of this pattern is proven by the finding that, removing specific nodes of the “bouquets” (1% of the total) causes the disconnection from the largest component of about 41% nodes.