Social experiments live and die by Network Effects, the prize for dealing with all of the human messiness upfront for the few social experiments that make it to the other side. Network effects can become so strong that it doesn’t matter how bad the bits a company produces are, people will stick around (ahem, Facebook).
Networks can produce value in different, sometimes completely bizarre, and inconspicuous ways. The efficiency of value production in networks could greatly outperform traditional organizations due to network effects, low operation costs, resource pooling, and trustless automation.
This article outlines how we see network effects impacting nearly every aspect of your life. With that lens, it lays out a perspective on how to make the 7 most important decisions of your life. It will hopefully help you make decisions that are more true to the kind of life you want to lead.
Network Effects are the foundation of many great Silicon Valley technology companies/ You need users to make a product work – network effects are the results of positively connecting people through technology which organically makes that technology better.
The world seems chaotic. But it’s not. Underlying all this apparent complexity is some wonderfully simple math. Follow the math to your destination. Understanding the primacy of networks will give you a superpower to see what others do not and navigate life’s big decisions more effectively.
Here’s the big change we all need to understand. The network itself is now the means of value creation, and thus wealth creation. Wealth, wisdom, power, and status all flow on the network...the big picture is that we can see each other and communicate about most things instantly and for zero marginal cost.