{"id":12884,"date":"2012-11-23T14:45:58","date_gmt":"2012-11-23T14:45:58","guid":{"rendered":"https:\/\/www.techopedia.com\/definition\/metcalfes-law\/"},"modified":"2024-06-20T14:31:50","modified_gmt":"2024-06-20T14:31:50","slug":"metcalfes-law","status":"publish","type":"definition","link":"https:\/\/www.techopedia.com\/definition\/29066\/metcalfes-law","title":{"rendered":"Metcalfe’s Law"},"content":{"rendered":"

What is Metcalfe’s Law?<\/span><\/h2>\n

Metcalfe’s Law is a concept used in computer networks<\/a> and telecommunications<\/a> that represents the value or influence of a network. It states that a network’s impact is proportional to the square of the number of nodes<\/a> in the network. The focus is on the number of possible connections<\/i> among the nodes. For example, if a network has 10 nodes (i.e., computers<\/a>, servers and\/or connecting users), its proportional value is 100 (10 x 10).<\/p>\n

Metcalfe’s Law was conceived by George Gilder but is attributed to Robert Metcalfe, co-inventor of Ethernet<\/a> (1980). It addresses both the growth in the number of connections and the value of the network. Given that the Internet<\/a> as we know it today was not around when the law was formulated, it originally referred to the value of devices<\/a> in general.<\/p>\n

For example, owning a single fax machine<\/a> is useless. When there are two fax machines, you can communicate with one other person, but when there are millions, the device gains significant value.<\/p>\n

Over time Metcalfe’s Law was linked with the Internet’s substantial growth and how it operates in line with Moore’s Law<\/a>. The concept is similar to the business notion of a “network effect,” where the value of a network provides both additional value and a competitive advantage.<\/p>\n

Metcalfe’s Law is also known as the network effect<\/i>.<\/p>\n

\"What<\/p>\n

\n

Key Takeaways<\/span><\/h2>\n