By: Raymond Chan, CEO Alphaslot

A network effect is the positive impact on a product or service when additional users are presented. It becomes significant after the critical mass has been achieved and resulting in a positive feedback loop. In fact, the ability to leverage the network effect of a platform gives an advantage over competitors in every industry. It is evident by seeing the results from Microsoft Windows in the 90s and Apple’s iTunes store over the last decade.

More recently, Uber and AirBnB are examples of some of the most disruptive companies in their respective industries that leverage the network effects when a new technology arise. The network value leads to a snowball effect that allows these companies to dominate the multibillion dollar markets. This should also apply to gaming, and I believe this will happen for those who can first utilize the future use of technologies.