Block Analysis in Bitcoin System Using Clustering with Dimension Reduction

The online cryptocurrency bitcoin, created based in blockchain technology, is attracting the attention of individuals, businesses and the government as well. As interest in blockchain technology and cryptocurrency has steadily increased over the past few years, trading volume and market size of cryptocurrency have increased at an astonishing speed. As a result, analysis and monitoring measures for blockchain networks, blocks, and transactions have become an important issue. In this paper, the method of clustering applied dimension reduction as a method of bitcoin network analysis is proposed. The proposed method applies the analysis way using K-means algorithm with PCA to block data in bitcoin collected by this research team.