# kaal:claim:3782191-016

**Claim.** Decentralized systems depend on network effects, which occur when increasing numbers of participants in a network improve the value of network access for the entirety of users; however, a network's infrastructure can compromise its network effects and the associated user benefits.

**Type.** condition  **Support.** argued

**Holds when.**

- networked decentralized systems

**Source quote.**

> Decentralized systems depend on network effects. Network effects occur when in- creasing numbers of participants or users in a given network improve the value of network access for the entirety of the users.

**From.** Craig Calcaterra, Wulf A. Kaal, *Preface to* (2021), Basics of Decentralization, page 9

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Preface to (2021). SSRN: https://ssrn.com/abstract=3782191

**Verify.** sha256 of source PDF `b0bf0529c3cf69839879bc4da476714efee2717a4beb768bd5c859b810e6174e` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20Preface%20to.pdf

**Topics.** institutional-design, decentralization

**Keywords.** network-effects, decentralization, user-value, infrastructure

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