Blockchain Network Effects — the Next Bull Market Driver? | CoinMarketCap

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The more people use something, the (exponentially) more useful it becomes - this can be explained as the Network Effects 🌐 What role does this effect play in blockchain? Let's find out 👇

since too many players drive up the price of in-game assets and slow down the blockchain.

Ethereum's core "product" is decentralized blockspace, and its main strength is a talented and innovative developer community. Thus, there are manysize of the total addressable market. A classic operating system, like Windows, addresses every computer user, setting a high benchmark for Ethereum. Still, it is uncertain how many users want to put up with technologically inferior products for the sake of decentralization.

A more tangible value pitch would allow us to define Ethereum’s total addressable market and its potential network effect more precisely.. Switching costs for users are low - it's easy to use other L1s instead of Ethereum, But how well-built a network is in terms of composability and scaling will directly influence the number of users a blockchain has.

The bear market is the perfect time for blockchains to zero in on the actual problems they are trying to solve. This article contains links to third-party websites or other content for information purposes only . The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site.

 

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