Past, Present, Future: From Co-ops to Cryptonetworks
Today, some of the most valuable corporations in the world today are “network operators”. Thanks to network effects, these platforms become more valuable to existing users as each new user joins. Network effects are innocuous at first, but can cause concern at scale if platforms enter an “extractive” phase in
Today, some of the most valuable corporations in the world today are “network operators”. Thanks to network effects, these platforms become more valuable to existing users as each new user joins. Network effects are innocuous at first, but can cause concern at scale if platforms enter an “extractive” phase in their lifecycle. My partner Chris has illustrated the evolution of platforms with network effects — and their relationships to their users — as follows: The key phenomenon to note above is that these platforms shift from cooperating with their users (“complements”/ complimentary businesse
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