“How’d You Come up With Metcalfe’s Law?”, 2023-03-22 (; backlinks):
Bob has been an active member of the Austin startup community for 10+ years and I’ve talked with him many times. As a EE, it was cool meeting him the first time and once I’d chatted with him a few times, I finally asked the question I’d been dying to ask: How’d you come up with “Metcalfe’s Law”?
Metcalfe’s Law states the value of a network is proportional to the square of the number of devices of the system.
When I finally asked him, he looked at me and said “I made it up.”
Me: “… what?”
Him: “I was selling network cards and I wanted people to buy more.”
Me: “… what?”
Him: “If I could convince someone to buy 4 instead of 2, that was great. So I told them buying more made each of them more valuable.”
It was mind-blowing because so many other things were built on that “law” that began as a sales pitch. Lots of people have proven out “more nodes are more valuable” but that’s where it started.
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