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Content
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Dan | Icebreaker pfp
Dan | Icebreaker
@web3pm
Network effects are obsolete but practically no one realizes it
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Ben 🟪 pfp
Ben 🟪
@benersing
Can you elaborate?
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Dan | Icebreaker pfp
Dan | Icebreaker
@web3pm
Most network effects businesses are predicated on the assumption of closed data True in 2000s and 2010s. Now it’s possible to generally liberate closed data thru coops, data takeout, TLS. As data acquires interoperability, network dynamics invert where closed networks are increasingly stranded fighting solo while open networks can ingest everything. The result is competition based on value delivered vs lock in. Fundamental shift in power that counterpositions against incumbents for whom it’s irrational to open up until it’s too late. Thus the era of traditional closed data network effects is over. Tho it’ll take 2 decades to play out.
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Dan | Icebreaker pfp
Dan | Icebreaker
@web3pm
As an example, every new user of Farcaster, Twitter, and LinkedIn is also a new user of Icebreaker. Every connection they make can be propagated automatically as part of that user’s hypernetwork, and vice versa from Icebreaker to Farcaster because they are open. But not LinkedIn and Twitter. They are closed. And not going to honor anything that happens outside their walls, because they make more money keeping you locked in, viewing on-platform content. Farcaster and Icebreaker don’t care. They can focus on delivering value, finding great content and people, respectively, wherever those may be, instead of locking you in. Over time and as the open tools reach sufficient product and UX maturity, why would you ever *not* use something that not only gives you a superset of data from existing platforms but is 100% focused on delivering value instead of lock in? Yes this totally violates YC gospel but times have changed.
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