The Network is the Market

Just came across a definition for Social Networks by Ross Mayfield. He states:

“Social Networks (unlike Political or Creative Networks) are fundamentally transactional. We each have a group of people, no larger that 150, that we passively track and trade with. We have relationships of a kind with each of them and are aware of their relationships with each other. What we are monitoring is social capital. When someone wrongs another, if you have both people in your Social Network, you become aware of it and adjust your tacit social credit ratings….”

I made the statement not too long ago (and a lot of other people) that “the network is the computer.” I never thought at the time (originally back in ’95) folks would start to use the terminology to constrain the network (really the Internet) into, in effect, subnetworks types. Hmm. Not sure what to think here. There are sure to be some revenue models somewhere but are they significant enough to support a new Internet industry subtype? Not sure but I’m noting it anyway for future discussion.

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4 Comments on “The Network is the Market”

  1. Erik Benson says:

    You shouldn’t file it away just yet… this is the business case for the project I told you about last Friday, as well as for all of those social network sites (so I’d be curious to hear your thoughts on it). In my opinion the social network creates a market where certain people are “worth” more in the network than others. I think it’s only a matter of time before that (which is basically an explicit form of fame) turns into a revenue model.

  2. Andrej Gregov says:

    Made a minor update to my post as I insinuated that Ross Mayfield was a VC (which I actually incorrectly thought). I updated my post to more accurately describe my thinking at the time. Appologies to Ross Mayfield.

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