We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Networking

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is Metcalfe's Law?

By E.N. Brown
Updated: May 17, 2024
Views: 12,612
Share

Metcalfe’s law is a mathematic formula for measuring the value that a communications network has. It was developed by Robert “Bob” Metcalfe, an electrical engineer who became a pioneer of Web technologies.

Metcalfe’s law pits the success of a communications network on the number of users. More specifically, this law holds that the network value grows exponentially as the network accumulates more users. Metcalfe first formulated the law in regard to Ethernet — a local area networking (LAN) technology that he and researcher D.R. Boggs invented. This technology links personal computers, but it can be applied to the Internet in general, to Web 2.0 technologies, or to any number of telecommunications networks (telephones, fax machines, etc.) where cross-connections are necessary for the network as a whole to have value.

For instance, a social networking site with only one registered user would essentially be useless. If 100 users sign up, however, it becomes more attractive and beneficial for each individual user. If 1,000 people sign up, even better. The more people who join, the more useful, enjoyable or valuable the site becomes.

Expressed mathematically, Metcalfe’s law states that V = n2, where V stands for value and n stands for the number of users. Metcalfe first illustrated this concept in a 1980 slideshow presented to early Ethernet adopters; it was brought to the public’s attention in a September 1993 Forbes magazine article written by George Gilder.

Over the past two decades, Metcalfe’s law has become somewhat controversial, especially in recent years. Some have claimed Metcalfe’s law is outright wrong; others say it is simply misunderstood.

Since his original conception, Metcalfe has clarified several points. He has added that when Metcalfe’s law is applied to social networks (and thus social networking sites like MySpace, Facebook and LinkedIn), it is not just the number of users that must be considered but also the affinity between users. He has also pointed out that the law works best when applied to smaller networks and loses value when concepts like "connected" and "value" cannot be quantified.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Editors' Picks

Discussion Comments
Share
https://www.wisegeek.net/what-is-metcalfes-law.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.