It's difficult to understand the exponential nature of the network effect without a visual aide, since humans don't intuitively understand exponential functions.
There's too much potential value to be realized by a universal monetary ledger to imagine that some kind of fragmented solution will successfully compete.
There's too much potential value to be realized by a universal monetary ledger to imagine that some kind of fragmented solution will successfully compete.
Competing blockchains are not "fragmented." They are linked through exchanges, and soon by SuperNet/Blocknet type interconnections.
Your illustration is extremely simplistic. I think you know enough economics to realize that.
If not, please educate yourself on the related concepts of diseconomies of scale and negative marginal return.
Because more is different.
This is the network effect in graphical form. Diseconomies of scale have little to do with this concept.