BitDegree and Network Science

bitdegreeiconMetcalfe’s law, the bitcoin, the ethereum and their value. I am a Data Scientist student and I took a course with Dr. Fragkiskos Papadopoulos on Network Science. I know a little bit about everything regarding network science and today I will talk to you about the basics to calculate Metcalfe’s law on your own and track bitcoin but also any other coin you want like ethereum and their network value.

Metcalfe’s law states that the value of a network is proportional to the square of the number of its nodes, i.e. N². Formulated around 1980 in the context of communication devices by Robert M. Metcalfe, the idea behind Metcalfe’s law is that the more individuals use a network, the more valuable it becomes. Indeed, the more of your friends use email, the more valuable the service is to you.

During the Internet boom of the late 1990s Metcalfe’s law was frequently used to offer a quantitative valuation for Internet companies. It suggested that the value of a service is proportional to the number of connections it can create, which is the square of the number of its users. In contrast the cost grows only linearly with N. Hence if the service attracts sufficient number of users, it will inevitably become profitable, as N² will surpass N at some large N (Figure 1). Metcalfe’s Law therefore supported a “build it and they will Continue reading “BitDegree and Network Science”