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Ep. 2 - The Underlying Properties Of Network Theory (NFX Masterclass)

The NFX Podcast

CHAPTER

Building a Network Business - Negative Network Effects

The two sides in this case are the supply and the demand. So the value is the more supply on the network, the more value to the demand side. Sometimes you actually have what we call same side network effects where the value to theDemand side actually increases. There's something else you need to be careful of when building your network business, which is negative network effects. A good example of that would be Ethereum, where the more people using Ether means gas prices go up.

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