Does Real Identity Matter for Networks? The Mind is a Computer - Scott H Young

Does Real Identity Matter for Networks? The Mind is a Computer - Scott H Young

When it comes to building network businesses, one of the key choices that Founders must make is how much to tie user profiles to real identity. The spectrum ranges from purposefully anonymous networks like Monero and Whisper to networks that require real names like Facebook and LinkedIn. Interestingly, there is a strong correlation between tying profiles to real identity and the long-term success and value of a network, which often goes unnoticed.

Using real identity in user profiles is not an easy path to take when starting out. It requires more commitment from users and introduces greater risk, making it harder to activate the network. This was evident in LinkedIn's slow growth during its first three years. However, using real names increases user engagement, leading to growth in size, density, and activity, which ultimately strengthens the network effect.

On the other hand, networks that allow for more anonymity tend to grow more easily in the beginning due to the lower commitment required. However, in the long term, these networks often burn out and produce less value on average. Facebook, for example, was able to get people to use their real names by launching in a constrained environment of perceived safety: college. By starting within this niche, where it made sense to show your real name, Facebook was able to establish a connection between online profiles and personal identity in real life.

However, networks like Twitter, Reddit, and Snapchat have usernames that differ from people's real names and have still managed to thrive. This is because these networks have created persistent online identities that are partially tied to real-world identities. While not fully anonymous, these semi-pseudonymous networks allow users to maintain a level of privacy while still being emotionally invested in building and maintaining their reputations.

Engagement is a crucial factor when it comes to network effects. A dense and highly active network will always outperform a larger but less active one. Network effects occur when more users equal more value for existing users, but the strength of those network effects depends on the size, density, and engagement of the network.

In the competition between network effects companies, the ones with more powerful network effects will ultimately come out on top. Having network effects alone is not a guarantee of success. It's the strength of those network effects that truly matters. Friendster, for example, launched as a general social network with real names and experienced rapid growth. However, due to mismanagement and heavy criticism for focusing on real names, Friendster never achieved stability.

Now, let's shift our focus to the concept that the mind is a computer, as discussed by Scott H Young. Cognitive science and orthodox views in psychology and neuroscience assume that the mind functions similarly to a computer. This is not to say that there are no differences between biological and digital computers but recognizing this similarity allows us to better understand how the brain works.

The brain is incredibly complex, with a massive number of synapses and interconnectedness. Similarly, computers are logical, while humans are emotional. Computers lack sentience, while humans have consciousness. Computers operate based on rules, while human thinking is holistic. Despite these differences, the idea that the mind is a computer helps us comprehend the inner workings of the brain.

In conclusion, real identity does matter for networks, as it leads to higher engagement and stronger network effects. However, it is important to strike a balance between anonymity and real identity to ensure long-term success. Additionally, understanding the similarities between the mind and a computer allows us to gain insights into how the brain functions. To apply these insights to practical use, here are three actionable pieces of advice:

1. Foster user engagement: Prioritize building a dense and highly active network. Encourage users to actively participate and contribute to the network, as this will strengthen the network effects.

2. Find the right balance: Consider the level of anonymity or real identity that best suits your network. While initial growth may be easier with anonymity, long-term success often comes from tying user profiles to real identities to foster commitment.

3. Continuously improve and adapt: Mismanagement and failure to address criticism can hinder the stability and growth of a network. Stay open to feedback, learn from mistakes, and adapt the network to meet the needs and preferences of users.

By following these actionable advice, network businesses can create a strong foundation for growth and success while ensuring that users are actively engaged and committed to the network.