The Network Effect and Why it is Vital to Blockchain Ecosystems

The network effect can be termed the rationale of a commodity’s increasing value due to its wider usage among people. This means that the demand for a specific entity/service is greatly dependent on the interest that it’s able to generate to determine the overall utility and success of the product. Blockchain technology and cryptocurrencies, both still in their infancy, are strongly influenced by the network effect to determine the value and overall potential of an organization that has significant aims of long-term success. It’s just not blockchain where the increase in users results in the improvement of a value of a good or service, the network effect phenomenon also applies to widely-used industries such as social media and credit cards.

YouTube and the power of network effect

To monetize the views and users, YouTube shows ads in its videos. This was key in introducing YouTube to an entirely new section of smart social media savvy marketers- the more videos and users YouTube was achieving, the more the advertisers wanted a part. This has resulted in an ecosystem of success and network effect where YouTube, by capturing the value created by its users, has achieved positive cash flow, which it then shares with its content creators, and the whole cycle continues.

VISA and MasterCard create crucial value

Blockchain ecosystems can enjoy similar network effect benefits

The PAID Network ecosystem is gaining massive traction due to the network effect

Our $PAID token is the focal point of our entire ecosystem and a significant part of our sustained success. PAID Network is expanding the technological and human resources required to exponentially grow the $PAID ecosystem which directly translates to increased popularity and usage. So by establishing and consolidating our position through creating value via the services and products we offer- this correlates to an increased number of users on the PAID platform, which then results in further improvement of the value offered by the PAID ecosystem- a perfect network effect cycle.

$PAID is the fuel of the PAID Network platform

To further cement the benefits of PAID’s network effects, our ecosystem has inherent architectural features to reflect the new post-COIVID era we now live in. They are simple in their iterations with unique propositions such as:

  • SMART agreements
  • Insurance pooling and escrow
  • The upcoming launch of our PAID V2 DApp
  • Reputation scoring
  • An ignition crowdfunding platform that offers both private and public auction services

All while making sure $PAID is the only fuel that allows for these services.

To summarize, PAID Network enables the network effect we have generated to create and expand our ecosystem to maintain and further a reputable driving force in decentralized blockchain technology. We robustly meet market demands by ensuring users and businesses #GetPAID wherever they are in the world.

About PAID Network

PAID technology leverages Plasm to operate on both Ethereum and Polkadot ecosystems. PAID makes businesses exponentially more efficient by building SMART Agreements through smart contracts to execute DeFi transactions and business agreements seamlessly.

PAID streamlines backend legal operations with SMART Agreements so that projects can focus on making their brand bigger and better.

For any questions for the PAID network, please feel free to reach out to us on: