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From the abstract of an article in vol. 6 (most recent): > We show that, contrary to the usual implications of network effects, they do not serve to concentrat
by 58x14 5y ago
From the abstract of an article in vol. 6 (most recent):
> We show that, contrary to the usual implications of network effects, they do not serve to concentrate the cryptocurrency market, nor do they accord any one cryptocurrency a definitive competitive advantage, nor are they consistent enough to be reliable valuation tools. Therefore, while network effects do occur in cryptocurrency networks, they are not (yet) a defining feature of the cryptocurrency market as a whole.
In the paper:
> we acknowledge that addresses with non-zero balance still do not reflect a one-to-one mapping between addresses and actual users. Not only can a single user have multiple addresses, but also a single address can represent multiple users
So, I can understand their arguments and their research, but it feels fundamentally flawed, because it's impossible to quantify the number of users of a blockchain. Am I wrong here?
4 of the 7 articles in vol. 6 are particularly about price activity, not underlying technology. I wonder why. I hope to see more peer-reviewed articles covering protocol-level advances, or perhaps more socioeconomic topics. Maybe that's too fuzzy for Ledger's editors?
- ekanes 5y ago> > We show that, contrary to the usual implications of network effects, they do not serve to concentrate the cryptocurrency market, nor do they accord any one cryptocurrency a definitive competitive advantage, nor are they consistent enough to be reliable valuation tools. Therefore, while network effects do occur in cryptocurrency networks, they are not (yet) a defining feature of the cryptocurrency market as a whole. Interesting. If there are ways to quickly/cheaply "bridge" between blockchains, presumably the entire space will benefit as one from increasing network effects.
- ShamelessC 5y agoHaven't taken the time to read that quote in context. It seems like they're making statements based on the possible nature of the network, not on the current specific distribution of users, no?