Ep 9: Why Network Effects Are (Even) More Powerful In Web3 (NFX Masterclass)
In Web3, network effects are fundamental and critical to survival. If you’re building in Web3 properly, then it should automatically include network effects. Listen in as General Partner Morgan Beller acts like the river guide of network effects for Web3 as she shares her experience and insights on how to be defensible in this new world. Eventually, we will see Web3 swallow Web2 - look how much we’ve learned since that white paper for BTC arrived in 2009. Founders on the frontlines of the Web3 world are educating us on how to remain defensible and retain growth amongst competitors.
Key Points
- Network effects, which were a nice-to-have in Web 2, are now essential for survival in Web 3, and startups need to focus on building their community and product in an inverted way, starting from the outside of a framework and moving inward.
- Web 3 products differentiate from Web 2 by offering decentralized ownership, where creators and consumers are also the owners, fundamentally changing engagement and the value of the platforms.
- Founders in Web 3 should follow a three-stage framework to build defensible network effects strategies: start with network bonding by engaging with their community, navigate towards stronger network effects at the center, and reinforce these effects over time with the help of the community.
This is an audio version of episode 9 from The Network Effects Masterclass, curated for audio and listening on the go. For the full video experience, transcripts, and recommended reading, join the free Network Effects Masterclass at - NFX.com/masterclass.
Chapters
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Transcript
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