A network effect occurs when a network expands from a small initial reach to a very large network, increasing the utility of the goods and services it provides. The internet is most likely the best example of a network effect. The internet had very few users when it was first created, but as it grew, its overall power and usefulness increased dramatically. Because of their size, trustworthiness, and utility to a large number of users, blockchain protocols such as Bitcoin and Ethereum have the greatest network effect in a blockchain context.
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