Articles Digital Marketing and creating online businesses.

## What is Metcalfe's Law?

Why do Google and eBay open their source code?

Quick to "why" answer: so what is the logical evolution of a Save the Metcalfe a Red Group. If you are interested in topics ... read on.

Lets start by the beginning:

## What is a Network Metcalfe?

A Save the Metcalfe is a business with a particular structure thus generating value from Metcalfe's Law.

(... yeah okay, thank you)

## What is Metcalfe's Law?

Metcalfe's Law postulates that the value of a network increases as the square of the number of system users. This is not true 100% (after I explain why), but the truth is that this law is of great application to determine the expected growth for a business and creating value that is linked to this growth.

Consider this ...

(Whether they are online as if you are offline)

In a traditional business, a provider offers a service or sell a product to a number "n" of customers. And the number of potential transactions to be performed in a given repeat customers without time, exactly equals the number of customers you have. (See Figure 1)

The value of this business depends on the number of customers who have (of course, there are more factors that influence business value, but in a hypothetical formula for calculating the value, our "n" is one of the variables ... and it is in this article we will analyze).

In a traditional business, the number of possible transactions grows linearly. That is: +1 customer equals +1 possible transaction.

### The structure of business networking

Hay ciertos negocios, como el de una red telefónica, que no funcionan como un negocio tradicional. Todos los usuarios son oferta y demanda a la vez (emiten llamadas y reciben llamadas), así que el número de posibles transacciones es prácticamente n^2 (“n” al cuadrado) … y digo “prácticamente” porqué en realidad es n*(n-1) ya que la oferta son todos los usuarios, pero la demanda, son todos menos tú mismo… no se realizan llamadas sobre uno mismo. (En el resto del artículo, consideraremos que es n^2 para no complicar las fórmulas, pero por favor, téngase en consideración).

The first person to apply a law on this kind of behavior in a business was Robert Metcalfe (or so the legend goes), inventor of the Ethernet when Xerox invented the first laser printer in 1974 and did not know how to connect more than one computer while this printer. Metcalfe's Law It postulates that the value of a networked system grows at approximately the square of the number of users of the network itself. (See Figure 2)

Image 2: Business Network structure Metcalfe

Hence, businesses with circular structures where all users can be supply and demand at the same time, are called Metcalfe networks.

The most beautiful example of Save the Metcalfe we have it on eBay. It tends to perfection, specifically, in its C2C (consumer to consumer) aspect. Any user is a potential seller and any user is a potential buyer. Its growth is the closest to n ^ 2 that we can find on the Internet.

The webs of contacts that are proliferating so much in recent years, are also clear examples of beautiful redes de Metcalfe perfectly round. And I say round, because there are networks whose structure is not round like the one in image 2. They are networks where there is clearly one side with supply and another with demand. In that case, the number of potential transactions is still supply * demand, but it does not tend to the square since they are different numbers. Of course, they are raised to a coefficient that is greater than 1, which would be that of the traditional business; but it is less than 2, which would be a perfect Metcalfe Network.

An example of this type of network would be SoloStocks.com not perfect, where companies sell their stocks, are not all potential buyers of stocks (except if all brokers ... then yes, you see the difference?). (See Figure 3)

Figure 3: Business with varying network structure Metcalfe

If the number of potential transactions in a perfect network Metcalfe 8 users would be 8 * (8-1) = 56, the number of possible transactions in a network noncircular 8 users (4 suppose that offer and 4 demanding) it would be 4 * 4 = 16 ie the coefficient network externality that market would be 1.33 instead of 2, and therefore value generation grow at lower speeds than those of a Save the Metcalfe perfect since it offers more value to its users, but higher than those of a traditional business that offers much less.

In a market like SoloStocks it is interesting to note that the greater the imbalance between the number of bidders users and demanding users, the lower the growth of the business and therefore always have to struggle to balance the number of bidders and plaintiffs .

Veamos un ejemplo de esto: supongamos una red de 8 usuarios donde 5 son oferta y 3 son demanda, el número de potenciales transacciones sería 3*5=15 y, por lo tanto, el coeficiente de externalidad de red 1,29. Si la desequilibramos más y tenemos 6 ofertantes y 2 demandantes el número máximo de transacciones es de 12. Y así…, hasta llegar al máximo desequilibrio posible, que sería el negocio tradicional (o cualquier comercio electrónico), donde hay 1 vendedor y 7 compradores (…para seguir con una red de 8 como teníamos antes); el número de potenciales transacciones sería 1*7=7 y por lo tanto el coeficiente de externalidad de red, sería 1, que es justamente lo que comentábamos cuando hemos explicado al principio la estructura de un negocio tradicional: el número de transacciones potenciales equivale al número de clientes.

Well ... if you have not giddy with both numbers and letters, and you read on, we will pass to the next level of evolution of a network and discover finally :-) why eBay and maybe Google (judging by the rumors by the network) open source code:

### Las Redes Grupales o Group Forming Networks

When a Save the Metcalfe technology allows users to organize around common interests or goals, begin to appear small Metcalfe networks gravitating around a large network to which the feed. (See Figure 4)

4: Business structure Red Group or Group Forming Network

For some time, eBay has been creating or participating in the creation of small sites specializing in certain types of auction and, therefore, has evolved into this model of network structure reminiscent of a daisy. Opening its code, leads to an infinite number of programmers begin to develop applications that revolve around the great network and eventually forming daisy petals.

With closed source, only they can create the petals. With open source have a chilling potential of possible petals to be created.

Growth Networks group tends to this formula: a ^ n, where "a" depends on the number of possible channels that can be opened, and where "n" is the number of users.

The theoretically perfect business would be one that consiguiese that for each user of the main network, possible to create a subnet. Its structure would be something like: n ^ n (I know of none and I'm sure it's just a theoretical model ... but the less, it is interesting to keep in mind).

## Summarizing:

Traditional businessesGrow linearly as the number of clients (plaintiffs service) having: supply * 1 * suit or buyers

Businesses with network structure MetcalfeGrow almost square of the number of users who have: n * (n-1) or simplifying: n ^ 2

Businesses with Red Group structureGrow exponentially: a ^ n
Opening codes applications accelerate this growth, growing "a".

### What happens when you join several networks Metcalfe?

Business 1: m number of users

Business 2: n number of users

Sum of users 2 networks Metcalfe:
(m+n)^2=m^2+n^2+2mn –> synergy appears !!! 2mn

(... and yes ... this is the Binomial of Newton studied at school! ;-)

Growth Metcalfe two networks together is greater than the sum of both growth separately.

Is not it beautiful to see the word "synergy" represented mathematically?

Tras el reciente anuncio del nuevo modelo de pago por indexación de Yahoo, el buscador AskJeeves se quiere desmarcar de ésta línea de actuación, anunciando que no aceptará modelos de pago por indexación en su base de datos.

Tras un año y medio, el programa de anuncios de pago Index Connect de Ask Jeeves ha llegado a su fin. Este tipo de servicio, con el que nunca ha estado de acuerdo Google, consiste en que una empresa puede pagar una tarifa para conseguir que sus páginas se indexen con más frecuencia en un determinado motor de búsqueda.

El problema de ésta táctica, tal como ha hecho ahora público AskJeeves, es que reduce la calidad de los resultados que se obtienen en una búsqueda. Así, ante determinados parámetros de búsqueda, se obtienen demasiados resultados comerciales de pago que muchas veces son irrelevantes para la persona que busca.

En estos momentos Google se convierte en el buscador que se opone completamente a este tipo de pago por mejor indexación. AskJeeves se une a esta política a favor de unos mejores resultados de búsqueda, mientras que Yahoo inicia recientemente un sistema de pago de este tipo, asegurando que mantendrá un muro entre este tipo de resultados y los gratuitos, para que esto no afecte a los usuarios.

## Matrix characters

(Preliminary note: I published this article about the Matrix characters for the first time in www.solocine.com (when SoloCine was a community of cinephiles directed by Rufino Yegros) and Matrix 1 had just been released, later I published it in Noticias.com(Preliminary note: I published this article about the Matrix characters for the first time in www.solocine.com (when SoloCine was a community of cinephiles directed by Rufino Yegros) and Matrix 1 had just been released, later I published it in

First of all, remember that cinema is the seventh art and as such, its purpose is to generate reflection, conveying emotion (beauty, passion, feelings such as love, hatred, perplexity ...) and be interpreted by an observer.

The art works are not completed and delivered. They become art from the moment someone sees, hears, touches them ... in short, feels and performs.

Matrix is ​​a work of art, each individual plays his way and feel what their experiences and their environment led him to feel and understand what at that particular moment it is stimulated by art, your mind conjures him.

This glossary is not to help understand Matrix ... just a personal interpretation of the names of some characters.

## AGENT SMITH ::

At first Smith is an agent of the Matrix, his role is analogous to that of a spider of a search engine ... is through the system and find who intends to ... no matter where they hide.

(Preliminary note: I published this article about the Matrix characters for the first time in www.solocine.com (when SoloCine was a community of cinephiles directed by Rufino Yegros) and Matrix 1 had just been released, later I published it in

When Agent Smith attacks Neo in Matrix I, I am contaminated by the code of Neo and become a self replicating virus that invades and corrupts until the system. This is Matrix Matrix 2 and 3.

He is the true enemy of Matrix.

## :: Persephone Persephone

It is one of the free programs that is next to Merovingian.

Persephone's ability to discover what feels who kisses her, to the person he loves. This is most clear in the game "Enter the Matrix", where both Niobe and Ghost Persephone should kiss her in exchange for the location of them confess they love.

Greek Persephone, is similar to the Matrix character. Abandoned daughter of Poseidon, not in great esteem for men. Its appearance is frivolous woman and seems to have no feelings. When trapped in the underworld he comes out the sensitive woman hiding inside.

## :: SERAF From Seraph

Seraphim, an angel of the Guard.

In Christian culture, Seraphim is the angel with the highest hierarchical status within the category of angels. So Matrix, that's also his role: in this case, is the guardian of the Oracle.

Frase celebre de Seraf "You do not really know someone until he has not fought him.

## U :: ORACLE ORACLE

Oracle is the grandmother of cookies that predicts the future.

Although "Oracle" to me reminds me: Oracle license and thus at 22,000 Euros ... the Oracle in The Matrix is ​​a good guy and would become a support program like we have in most of our computer programs. Although as the Architect says, in The Matrix it has a special role.

The name of this character from the Matrix makes a clear reference to the Oracle of Delphi, where the Greeks went when they wanted clues about what their future would be.

## :: ARCHITECT

God is the "Supreme Architect" of creation. In the same way "The Architect" is the creator of Matrix ... but need help from Oracle to end to understand humanity.

If we apply the computer to the definition of the name, we with the architecture of a system is the logical skeleton on which rests all programming. Although not programming itself.

The role of the architect could be interpreted as something like that built the structure ... but not necessarily programming.

Architect's famous phrase: "La primera Matrix que diseñé era prácticamente perfecta, una obra de arte. Impecable. Sublime. Igualada sólo por su monumental fracaso. La inevitabilidad de su ocaso resultó como consecuencia de la imperfección inherente a cada ser humano. Por ello la rediseñé, basado en tu historia. Para reflejar con más precisión la variedad de lo grotesco de tu naturaleza. Sin embargo, otra vez fui frustrado por el fracaso. Desde entonces comprendí que la respuesta me ha eludido porque requería una mente menor, o quizá una mente menos atada a los parámetros de la perfección. Entonces tropecé con la respuesta a través de alguien más… Un programa intuitivo… creado inicialmente para investigar ciertos aspectos de la psique humana. Si yo soy el padre de Matrix, ella sería sin dudarlo su madre.

## :: NEO

Anagram of "ONE" one, the only ... his life emulates that of Jesus, Neo is the Messiah ... has powers, performs miracles ... and also gives his life to complete the mission of saving humanity ... While it may be raised the third day…

Neo in Greek also means "new". So it is clear that judging by his name out of Matrix, Thomas Anderson (Ander + are = hijo_del_hombre) has no choice but to be the "New Messiah" is.

## :: NIOBE

Niobe represents the strength of humans in rebellion against the machines.

The Niobe name is given by the Greek Niobe, daughter of Tantalus, who was condemned to suffer eternally Hell hunger and thirst for stealing the food of the gods.

Niobe had married Amphion, a great musician who had helped build the walls of Thebes attracting the rocks with the sound of his lyre. The two husbands became kings of this city. Niobe angered the gods with their pride and they ended up killing their children, to punish her.

The Greek statues representing Niobe, always shown with children injured in his arms, protecting them from the wrath of the gods, as she drags them to safety.

## :: TRINITY

Trinity's name refers to the Holy Trinity and its role in Christianity.

Trinity shows from the first part of Matrix that love can cure everything. (Although we also have the Hindu trinity that is not as "good": Brahma, Bishnu and Shiva).

But the truth, and rather less prosaic, is that Trinity is also a program that distributed some years ago by IRC (chat program we had in the 90s), and served to make attacks on IP's. Also it is written as Trin00.

## :: Morpheus - MORPHEO - Morpheus

Morpheus is a name of Greek origin meaning "which makes it look wonderful."

Morpheus the Greek god of sleep is the son of Hypnos ... hence the saying "fall into the hands of Morpheus" to indicate that someone is sleeping.

Morpheus, also comes the word Morphine (also makes it look wonderful, they say).

In Matrix, Morpheus is the role of the contrary ... is who awakens Neo from his false life inside the womb. It would be a John the Baptist.

In fact, when Neo wakes up and lives outside the Matrix, literally out of the water.

Famous phrase: "Would you like to know what is the Matrix? Matrix around us. It is everywhere, even now, in this very room, you can see if you look out the window or turn on the television. You can feel it when you go to work, when you go to church, when you pay your taxes is the world that has been pulled over your eyes to blind you from the truth: That you are a slave like others born into bondage, born into a prison not you can not smell or taste or touch. A prison for your mind.

## :: MEROVINGIO

The name of this character from the Matrix makes a clear reference to the Oracle of Delphi, where the Greeks went when they wanted clues about what their future would be.

The film is meant to be one of the chosen although he preferred to stay with the girl (Persephone) and the powers it has in Matrix, rather than sacrifice his life to save mankind and Zion ... but this is not very clear .

Tells a story / legend that the Merovingian kings, who reigned in France more than 1,300 years ago, believed to be the direct descendants of Jesus.

For those who give credence to this story, it seems the crypto-Merovingian bloodline was perpetuated in the shade until today, so the "Lost King", the "Great Monarch" is present among us incognito. When the time comes, it will manifest ...

Merovingian represents exactly that character, as opposed to the figure of Neo. (Read "The Da Vinci Code" by Dan Brown, for more information. Read considering that is a fiction book. Not a treatise on history.).

## THE CREATOR OF KEYS :: O Keymaker

The name of this character from the Matrix makes a clear reference to the Oracle of Delphi, where the Greeks went when they wanted clues about what their future would be.

A KeyGen is a program that generates alphanumeric keys to deceive another program into believing that you are a registered user and you possess a legal key for it to work.

In Matrix, the Creator of Keys builds the key that opens the door to the Architect. That is, Neo helps to hack the code entry Mátrix.

Long, is my favorite character :-)

The name of this character from the Matrix makes a clear reference to the Oracle of Delphi, where the Greeks went when they wanted clues about what their future would be.

We talk to each other.