The Hidden Powerhouses of NFT Networks

The world of digital assets has seen a significant shift with the introduction of non-fungible tokens (NFTs). These unique digital items have found a home on the Ethereum platform, thanks to the advancements in blockchain technology. The way NFTs are transferred creates a network with a distinct pattern. This pattern is often described as a core-periphery structure. Think of it like a bustling city with a few central hubs and many surrounding areas. The core-periphery structure in NFT networks can vary greatly. This is due to the different ways the network can be divided. These variations lead to local differences and a wide range of overall patterns. To better understand this structure, a new method has been developed. This method uses Bayesian and stochastic block models (SBMs). These models help to incorporate existing knowledge, making the core-periphery structure more accurate. In addition to the new method, there is also a scheme called locally weighted core-periphery structure aggregation (LWCSA). This scheme uses the minimum description length (MDL) principle to determine local aggregation weights. The result is a more precise and representative core-periphery structure. This approach has shown promising results. Core nodes, which are the most influential in the network, make up only about 2. 3-5% of all nodes. When compared to other methods, this approach shows a significant improvement. The normalized mutual information (NMI) index, which measures the quality of the structure, increases by 6-10%. This means that the new method provides a better understanding of the NFT market's underlying structure. This is crucial for anyone looking to analyze or invest in the NFT market. It provides a solid foundation for further exploration and study. The NFT market is complex and ever-changing. Understanding the core-periphery structure can help navigate this complexity. It can reveal the key players and the overall dynamics of the market. This knowledge is valuable for researchers, investors, and enthusiasts alike. It offers a deeper insight into the world of NFTs and their potential impact on the digital asset landscape.