Metcalfe's law

Value of a communication network is proportional the square of the number of pairwise connections / From Wikipedia, the free encyclopedia

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Metcalfe's law states that the financial value or influence of a telecommunications network is proportional to the square of the number of connected users of the system (n2). The law is named for Robert Metcalfe and first proposed in 1980, albeit not in terms of users, but rather of "compatible communicating devices" (e.g., fax machines, telephones).[1] It later became associated with users on the Ethernet after a 13 September 1993 Forbes article by George Gilder.[2]

Metcalfe-Network-Effect.svg
Two telephones can make only one connection, five can make 10 connections, and twelve can make 66 connections.

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