A Python library for measuring the Nakamoto Coefficient of a Sector. Based on the post "Quantifying Dectralization"
There is a Medium post going over BigQuery SQL and Nakamoto Coefficient for this module. There is a Kaggle Notebook for Nakamoto Coefficient with code examples.
Features:
- Nakamoto Coefficient Measurement
- Gini Coefficient Measurement
- Lorenz Curve Plot on Plotly
- Decentralization Plot (Lorenz + Nakamoto Features)
- Custom + Built In Sectors (See Sectors section)
$ pip install nakamoto
Make sure to sign up for Plotly to get an API Key, as well as get a Github API Key. Github and Market URL Environment Variables aren't required to run full test script below.
PLOT_NOTEBOOK=1 PLOT_IMAGE_PATH=image.png GITHUB_URL=Z python3 test.py
We need to specify if we want to run this in a Jupyter Notebook or save the plot images. We can save the config in a dictionary like this:
nakamoto_config = {
'plot_notebook': TRUE,
'plot_image_path': "image.png"
}
where PLOT_NOTEBOOK and PLOT_IMAGE_PATH are the values you ge.
This module allows passing a numpy array of data to be processed in order to measure inequality distribution (gini) and decentralization
(nakamoto coefficient). We use CustomSector for that.
We can generate sample data for our gini and lorenz curve via the following command, which appends 2 Poisson random samples to
get a skewed dataset. We will also name a currency here, which we will use ETC for.:
random_data = np.append(np.random.poisson(lam=10, size=40),
np.random.poisson(lam=100, size=10))
currency = 'ETC'Now, we will generate the CustomSector object using those variables:
from nakamoto.sector import CustomSector
custom_sector = CustomSector(random_data,
currency,
'custom_sector_type',
**nakamoto_config)where 'custom_sector_type' is a string describing the sector type. For example, if the data I'm passing into the CustomSector
class is about mining rewards, I can just call the type mining_rewards.
To first get the Gini coefficient, we run the following command:
gini = custom_sector.get_gini_coefficient()
print(gini)$ 0.5093952180028129535951653520 To get the Nakamoto coefficient, we run the following command:
nakamoto = custom_sector.get_nakamoto_coefficient()
print(nakamoto)$ 7To generate the Plotly graph and get the URL for the graph, we run this command:
plot = custom_sector.get_plot()
Measures Github contributions of all who contribute to a specific repository and determines how decentralized the repository is and the minimum number of developers needed to compromise it.
In order to get started, you first need to get a "Github API Key".
You also need to find a github repository url that you want to analyze for decentralization.
In this example, I'll be using IOHK's "Mantis Client" for Ethereum Classic.
from nakamoto.sector import Repository
github_url = "https://github.com/input-output-hk/mantis"
github_api = YOUR_GITHUB_API
repository = Repository(currency, github_api, github_url, **nakamoto_config)Repository class will automatically analyze the github url data for you, so you can just call then .get_nakamoto_coefficient()
& .get_gini_coefficient() on repository. It also supports .get_plot_url() like CustomSector.
Measures volume by cryptocurrency exchange using data from CoinMarketCap for a specific currency. Measures how centralized exchanges are in respect to a particular volume of a cryptocurrency and minimum exchanges needed to centralize volume.
Note: You need the #market link for your currency for CoinMarketCap. In this example, I use the Ethereum Classic Market URL:
from nakamoto.sector import Market
market_url = 'https://coinmarketcap.com/currencies/ethereum-classic/#markets'
market = Market(currency, market_url, **nakamoto_config)Same methods to generate Gini, Nakamoto, and Lorenz Curve like CustomSector.
Measures decentralization by client usage. Currently scrapes data for combined EVM nodes. Future versions aim to separate the data
and have more coins. For now, only 2 currencies you can pass it are ETC and ETH. It only calculates combined EVM nodes.
Future versions will have a separation between EVM chains and will include BTC. Pull Requests welcome!
from nakamoto.sector import Client
client = Client(currency, **nakamoto_config)Same methods to generate Gini, Nakamoto, and Lorenz Curve like CustomSector.
Measures miner decentralization by country. Sames as Client, measures for combined EVM nodes. Future versions aim to separate
the data and have more coins. For now, only 2 currencies you can pass it are ETC and ETH. It only calculates combined EVM nodes.
Future versions will have a separation between EVM chains and will include BTC. Pull Requests welcome!
from nakamoto.sector import Geography
geography = Geography(currency, **nakamoto_config)Same methods to generate Gini, Nakamoto, and Lorenz Curve like CustomSector.
The Nakamoto class can take in a list of sectors that you created above and can generate an analysis
over the entire ecosystem.
It returns back 2 things:
- Minimum Nakamoto: This is the minimum nakamoto of each sector's nakamoto, highlighting the most vulnerable sector as measured by the number of entities needed to compromise it.
- Maximum Gini: This shows the highest gini coefficient, indicating the sector with the highest distribution of inequality, indicating a centralization point.
You can also generate a nice dataframe summary of all the sectors.
from nakamoto.coefficient import Nakamoto
sector_list = [geography,
market,
client,
repository,
custom_sector]
nakamoto = Nakamoto(sector_list)Now, let's get the maximum gini and accompanying sector id
nakamoto.get_maximum_gini()To get the minimum nakamoto coefficient, we execute the .get_minimum_nakamoto() method.
nakamoto.get_minimum_nakamoto()In order to get a Pandas dataframe summary, use the .summary() method.
nakamoto.get_summary()