What is Metcalfe's law?

Metcalfe law is a mathematical formula for measuring the value that the communication network has. He was developed by Robert "Bob" Metcalfe, an electrical engineer who became a pioneer of web technology.

The Metcalfe law sets the success of the communication network about the number of users. More precisely, this law claims that the network value is increasing exponentially because the network accumulates more users. Metcalfe first formulated the law with regard to Ethernet - the technology of the local network (LAN), which he and the researcher D.R. Boggs invented. This technology connects personal computers, but can be applied to the Internet in general, web 2.0 technologies or any number of telecommunications networks (phones, fax machines, etc.), where the network is necessary for the network as a whole.

For example, a social network website with only one registered user would be essentially unnecessary. However, if 100 users register, it becomes more stretched and beneficial for each individual user. If 1,000 logs inPeople, even better. The more people who join, the more useful, more pleasant or more valuable.

mathematically expressed the law of Metcalfe that v = n2, where it means value and n means the number of users. Metcalfe first illustrated this concept in the 1980 presentation presented to the adoptors of the early Ethernet; He was drawn attention to the public in the article Forbes Magazine in September 1993, written by George Gilder.

In the last two decades, Metcalfe's law has become somewhat controversial, especially in recent years. Some argued that Metcalfe's law was absolutely bad; Others say it is simply misunderstood.

He explained several points since his original concept. He added that when the Metcalfe law is applied to social networks (and thus social networking sites such as Mojespace, Facebook and LinkedIn), it is not only the number of users to take into account but also the affinity limitand the user. He also pointed out that the law works best when applied to smaller networks and loses value when concepts like "attached" and "value" cannot be quantified.