POWER OF A NETWORK
The network effect was first proposed by Robert Metcalfe in 1980. He derived that a network's value is measured in exponential growth, as opposed to linear growth. Rather than measuring users, he proposed measuring compatible communication devices like telephones or fax machines (it was the 80s after all). Only later after the rise of the internet was Metcalfe's law attributed to ethernet connections. Facebook or LinkedIn are two examples where the more people that participate, the more valuable the network becomes. The math works like this: N^2= network value, so if use 10^2 the network value =100. In the case of adding one more participant, node, or telephone, the network value jumps to 121 as we calculate 11^2 because there are more combinations for connection. This is how networks become more dynamic and resilient with each and every participant.
Open software projects
Blockchain is software that allows parties to share information in a way that is transparent, secure, and immutable. It is a distributed ledger that can be used to facilitate transactions and track assets in a business network. So is there a way to tell how much participation is on a blockchain software network? How many new projects? How many developers working on the blockchain? The chart below gives a window into the development of blockchain projects. If we are to apply Metcalfe's Law in evaluating projects, there is invaluable information when looking at the effort to build networks.
*source electric capital, github, artemis
**Notes
Kusama is a beta chain for Polkadot
Truffle is an ethereum-based project
Near is an ethereum-based project
Lightning is a layer 2 for Bitcoin
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