Centrality Measures

Centrality measures are metrics used in graph theory to identify the most important or influential nodes within a network. In a blockchain context, these measures can pinpoint addresses or entities that act as hubs for transaction volume, liquidity, or information flow.

Common measures include degree centrality, which counts the number of direct connections, and betweenness centrality, which identifies nodes that frequently sit on the shortest path between others. Applying these measures helps analysts understand the power dynamics of a network, detect potential central points of failure, and identify the most significant actors whose actions may have an outsized impact on market liquidity or stability.