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Multilayer networks continue to gain significant attention in many areas of study, particularly due to their high utility in modeling interdependent systems such as critical infrastructures, human brain connectome, and socioenvironmental ecosystems. However, clustering of multilayer networks, especially using the information on higher-order interactions of the system entities, still remains in its infancy. In turn, higher-order connectivity is often the key in such multilayer network applications as developing optimal partitioning of critical infrastructures in order to isolate unhealthy system components under cyber-physical threats and simultaneous identification of multiple brain regions affected by trauma or mental illness. In this paper, we introduce the concepts of topological data analysis to studies of complex multilayer networks and propose a topological approach for network clustering. The key rationale is to group nodes based not on pairwise connectivity patterns or relationships between observations recorded at two individual nodes but based on how similar in shape their local neighborhoods are at various resolution scales. Since shapes of local node neighborhoods are quantified using a topological summary in terms of persistence diagrams, we refer to the approach as clustering using persistence diagrams (CPD). CPD systematically accounts for the important heterogeneous higher-order properties of node interactions within and in-between network layers and integrates information from the node neighbors. We illustrate the utility of CPD by applying it to an emerging problem of societal importance: vulnerability zoning of residential properties to weather- and climate-induced risks in the context of house insurance claim dynamics.

 

Network motifs are often called the building blocks of networks. Analysis of motifs has been found to be an indispensable tool for understanding local network structure, in contrast to measures based on node degree distribution and its functions that primarily address a global network topology. As a result, networks that are similar in terms of global topological properties may differ noticeably at a local level. This phenomenon of the impact of local structure has been recently documented in network fragility analysis and classification. At the same time, many studies of networks still tend to focus on global topological measures, often failing to unveil hidden mechanisms behind vulnerability of real networks and their dynamic response to malfunctions. In this paper, a study of motif-based analysis of network resilience and reliability under various types of intentional attacks is presented, with the goal of shedding light on local dynamics and vulnerability of networks. These methods are demonstrated on electricity transmission networks of 4 European countries, and the results are compared with commonly used resilience and reliability measures. 

Cryptocurrencies and the underpinning blockchain technology have gained unprecedented public attention recently. In contrast to fiat currencies, transactions of cryptocurrencies, such as Bitcoin and Litecoin, are permanently recorded on distributed ledgers to be seen by the public. As a result, public availability of all cryptocurrency transactions allows us to create a complex network of financial interactions that can be used to study not only the blockchain graph, but also the relationship between various blockchain network features and cryptocurrency risk investment. We introduce a novel concept of chainlets, or blockchain motifs, to utilize this information. Chainlets allow us to evaluate the role of local topological structure of the blockchain on the joint Bitcoin and Litecoin price formation and dynamics. We investigate the predictive Granger causality of chainlets and identify certain types of chainlets that exhibit the highest predictive influence on cryptocurrency price and investment risk. More generally, while statistical aspects of blockchain data analytics remain virtually unexplored, the paper aims to highlight various emerging theoretical, methodological and applied research challenges of blockchain data analysis that will be of interest to the broad statistical community.The Canadian Journal of Statistics48: 561–581; 2020 © 2020 Statistical Society of Canada