Network effect: more users = more value = more users...
I've watched a few videos where @taskmaster4450 talks about Network Effect.
So I decided to do some investigating.
Investopedia defines Network Effect as...
a phenomenon whereby a product or service gains additional value as more people use it. source
Let's think about this for a moment.
Do you remember when ridesharing apps first appeared in your city? I sure do. I was living in Costa Rica at the time when Über entered the scene and it was nothing like what the service might have been like in San Fran when it first got started.
I had to wait for 30 minutes for a ride, no joke!
Little by little, drivers and riders started hearing about ride-sharing apps and they started to gain popularity. Before you knew it, Über drivers where available within 1 to 3 minutes.
Network Effect.
Telecommunications is a classic example of network effects:
source If there are only two actors in the network, you only have one connection, but as you add more users, the number of connections increases exponentially.
With only 1,000 users in the network, You already have almost 500,000 connections.
more users = more value = more users.
Let's think about Amazon.
What goods manufacturer doesn't want to be on Amazon?
And why is that?
Goods manufacturers want to sell on Amazon because there are so many potential customers. Since there is almost everything available on Amazon, more customers come to the site, which attracts more vendors which attracts more customers...
HIVE
If you're reading this, there's a good chance you're using one of HIVE blockchain's many front ends. If that's the case, you've probably heard about one or several of the other applications that are being developed on HIVE like
| App | Type | |
|---|---|---|
| PeakD | tokenized social media | |
| Hive Blocks | blockchain explorer | |
| V4V App | Bitcoin Lightning bridge | |
| Splinterlands | Game | |
| Dcity | Game | |
| Rising Star | Game | |
| Cub Finance | DeFi | |
| Polycub | DeFi | |
| Hive.pm | encrypted messaging | |
| 3speak | video-hosting | |
| Leo Finance | tokenized social media | |
| Leo Finance Mobile App | tokenized social media | |
| Ecency | tokenized social media |
I can't keep up with all the development happening on HIVE, so these are just some of the D'apps I use, but do you see where I'm going?
We've got decentralized exchanges, liquidity pools, blogging, DeFi, RSS, video-hosting, NFT galleries, it's own stable coin... The HIVE ecosystem is growing and improving on a daily basis.
image source: hive.io
More value = more users = more value
As @starkerz has said in his many interviews, HIVE is an blockchain ecosystem with
- No Premine
- No venture capitalists
- No fees
- Tons of useful applications.
HIVE cannot be sued or coerced into anything because we are all HIVE!
Bullish on HIVE
I have a very small portfolio of HIVE, BTC, ETH, LEO and some Hive-Engine tokens
NFA, but I feel like it might be a good time to bet on a truly decentralized ecosystem building tons of valuable applications.
If you don't want to invest, BUIDL. Build something useful on HIVE for free, and change your life and the life of those around you forever.
by the way, HIVE is priced at $0.45 US cents
Just saying.
Posted Using LeoFinance Beta
