David Walsh, of Bronxville, an American entrepreneur, investor and Internet visionary, introduced a new paradigm for valuing networks in an increasingly hyper-connected world. Walsh, who was part of the evolution of Metcalf’s Law and Moore’s Law at the dawn of the public Internet, has created a new formula designed to mathematically establish how valuable networks are, based not only on the endpoints connected to the network but the the endusers activity, and the quality of the content being shared.
Walsh submits that IP networks will continue to expand, given the massive growth of the Internet of Things, and rich multimedia content, and that digital networks and the communities they support will be valued based on this formula:
If “N” is users and “C” is content and “E” is IOT endpoints, Walsh’s Law is NV = n(n-1)/2 + c(c-1)/2 + e(e-1)/2.
“This is, of course, inspired by Metcalf but extended to a more contextually connected world,” David Walsh said. “As more people, places, and things are connected, and as more content and data traverse networks constantly and contextually, the value of a network is no longer just the squared value of the number of users, as we believed a few decades ago.
Rather, the new value of the network is created by the number of users, end points, and content connected by the network.”
The logic of the new law starts off with what Metcalf proved, which is the number of possible cross-connections in a network grows as the square of the number of people in the network increases, and the community value of a network grows as the square of the number of its users increase.
“What we now know is the value of a network is also influenced by how much content and the quality of the content is on a network as well as the number of overall endpoints on a network,” Walsh explained,”which goes well beyond users. IoT devices are perfect examples. Users without content (for example, people using the Public Switched Telephone Network, or the PSTN, to make phone calls) are not nearly as valuable as users with content (for example, Facebook users).”
David Walsh, who has been disrupting in the Internet and IP technology space since the 1980s, forecast that “In 2030, our Internet will be sliced into millions of private networks, running on a shared physical infrastructure, blending fixed and radio access networks together, delivering real, virtual, augmented, mixed and immersive experiences in a world where holograms will become the norm, and distance will become immaterial.”
He forsees Internet data peering models changing dramatically as a result.
“Forcing all Internet traffic to be peered by the incumbents, who connect with each other and exchange traffic, is no longer the only option, even though it will remain relevant for decades to come,” David Walsh, of Bronxville, said. “We simply need more options, more routes, and it won’t take us ten years to reinvent how we peer IP networks, and with whom.”
Learn more about David Walsh’s Law here.