Measuring Personalized Token Sharing to Establish Both Network Value and Token Value in Social Networks Cryptoraves Follow Sep 3, 2019 · 8 min read

The Cryptoraves Leaderboard Whitepaper

By Bryan Plasters

Abstract: Our goal is to define a significant approach to measure bond strength within interpersonal mutual connections utilizing tokens. We believe this measure can approximate the underlying value that intrinsically motivates users to do the many things we see them do on social media. This value includes the work required to build up social media status in the form of increased number of followers/likes/upvotes/etc; and why users willingly “give their data” to big social media companies and apps. Thus, a vast resource remains yet untapped by tokenization.

The Cryptoraves “game” design is predicated on the idea that intrinsic value within social networks can be most effectively captured/tokenized by considering the token-sharing network as a weighted directed network, then measuring the sum of token reciprocity between nodes, or users (i.e. a function of overlapping input and output arcs). By observing a single node’s number of weighted reciprocations, we can obtain a simple measure of that node’s added intrinsic value to the network. Applying this metric to all nodes, one can then determine a certain value of the entire network.

The Cryptoraves Metric for Measuring Network Value

Cryptoraves aims to implement this measurement first by providing a free, personalized, Ethereum-based blockchain token (ERC20) allocation to any willing participant. Network activity through the transaction of tokens between participants will allow us to obtain and track the data needed to acquire adequate metric precision. The following properties of these tokens give us qualities that can be examined and measured:

They’re Personalized. Tokens are launched on a per-node basis. Each individual node (user) will have their own personalized tokens to distribute as they see fit. Intrinsically, this offers the user a way to more authentically express appreciation beyond the generic heart/like/upvote that common social media sites currently offer. This also gives us the ability to track the source node of each token and its activity. They Have Weight. Tokens can be given in weighted amounts (1 vs 1,000 — and beyond — for instance). This allows users a dimension of signal strength, which can also be taken into account by our metric. They have limited supply. By arbitrarily assigning the limit of 1 billion personalized tokens per user, we can quantify ratios of tokens given vs received. Additionally, interesting strategies for optimal distribution may emerge. They are fully owned by the user. Because the tokens are blockchain-based, users (nodes) will have full ownership of their tokens and those they receive, which lends the added benefit of not being limited to storage or usage on any single specific social media platform. This autonomy and control coupled with the above characteristics allows the user a truly genuine form of expression. They’re Public. All transfers and accounts are registered on the blockchain. And the data is easily accessible for calculation.

Social Network Value Capture

Armed with a limited yet plentiful supply of authentic, unreplicable, personal tokens, one can now express appreciation of content in a less frivolous and a much more intentional way. By varying the amounts of sent tokens, one can communicate varying degrees of interest or commitment. Ranging from simply sending a few tokens of appreciation ;) up to perhaps committing a large percentage, e.g. millions of tokens, would represent a real vested interest in that person, cause, or project. Thus, it is a new way to show support through an investment of reputation. Tokens could also be a tool for platform-building and rewards mechanisms. Some social and economic examples that can drive token dissemination include a business offering rewards points, rewarding followers who show support through content contribution, or by any other means. And if proven valuable, the tokens themselves could be used as a tool to build followings and form/strengthen communities. For all of these and more, the basic properties of the Cryptoraves Metric still stands, we believe, as it is based on studies of raw network effect. Parties truly interested in mutual and community benefit will stand to gain the most.

The Living Formula

Is made up of three factors:

Relationship Strength (RS) — Represents the number and volume of tokens reciprocated. It is this aspect — of a social network system in particular — that is shown to be the most significant of the three factors [1] [2]

— Represents the number and volume of tokens reciprocated. It is this aspect — of a social network system in particular — that is shown to be the most significant of the three factors [1] [2] Presence Factor (PF) — based on the number of others’ tokens a node/user has received.

— based on the number of others’ tokens a node/user has received. Interest Factor (IF) — based on the number of tokens a node/user has given.

So any given node/user value metric can be derived from the sum of all three as follows:

Interest Factor

Based on modified Metcalfe’s Law [3] A single node that gives many tokens spread across a wide number of other nodes will score higher in this area versus a node that gives less to fewer. It’s noted that Game Theory would suggest that this factor could be attacked by spamming, thus a slow-growth model is needed to address the low cost of this attack vector. The other factors below can also mitigate this attack. Regardless, incentive for giving shall exist. IF is calculated by:

Where n = number of nodes connected to the user via tokens given. And t= number of tokens given.

Presence Factor

The presence factor is based on Nathan Black’s Adjusted version of Metcalfe’s Law [4]. A single node that receives a multitude of tokens from a wide array of other nodes will score better in this area than one who receives less, and from a fewer number. Note here that Game Theory suggests this factor could be attacked by a user with a legion of “puppet accounts” under their control i.e. the Sybil attack. Regardless, the PF value for a single node is calculated by dividing the total of that node’s received tokens as such:

Where t =the sum of all tokens received by the user.

Relationship Strength

We’ve customized the value determination portion of the formula used above to place significant emphasis on the RS factor, since our theory suggests that mutual appreciation accounts for the highest intrinsic value in an exchange, as noted previously.

Where t= total sum of reciprocated tokens and n is the number of nodes that mutual holders. This is the intersection of all tokens given and all tokens received on a node-to-node basis. 10x of that intersection signifies the amplified signal of mutual appreciation.

Application

Armed with this tool, we can apply scenario-specific sample data. These will be edge cases that highlight each individual segment of the Total Network Value equation.

Scenario 1: The Heavy Giver

This user is one that gives many, but for some reason whether they are a highly under-appreciated generous soul — at best — or a spammer at worst, would nonetheless still get a positive score for their efforts. There is also an absolute upper limit given the maximum token allocation of 1 billion. Thus, if a particularly dedicated user were to absolutely maximize their distribution of 1 billion tokens to 1 billion users, they still would — rightly — get a reward for their extraordinary efforts as shown by the hefty score of 18186606. That’s of course if no one appreciated Heavy Giver’s token and proceeded to give zero back. Here is a sample from a user that gives plenty but does not receive any:

Scenario 2: The Glorified Receiver

This one receives many, but never gives. This could be analogous to a social media influencer or celebrity. You’ll see the same amount of tokens and users as above except moved to the “# received” column:

Scenario 3: The Magnificent Reciprocator

This is our exemplum optimi. This is the user that demonstrates the true spirit of mutual appreciation. They embody the idea that true social connection consists of a two-way value feedback loop that informs and benefits all parties involved. This is the core of the proposed value we aim to measure, and thus this segment of the formula that holds the most weight:

You can see that taking any of the above scenarios and simply applying 1:1 reciprocation to any incoming or outgoing token causes the Total Network Value to rise by an order of magnitude. We theorize that this approximately represents the implicit experience involved in such reciprocity.

Conclusion

Determining value within social networks requires a modification of Metcalfe’s Law. In social networks, reciprocity is the most significant factor in determining a metric for both relationship strength between nodes, and total network value of the system. Assigning unique tokens to nodes (which allows more authentic and genuine expressions of intrinsic value) provides us with a quantification tool that allows us to interpret — at minimum — an approximation of shared meaning between nodes. This is therefore a more informed value estimation of the entire network as defined by these tokens.

References

[1] Diego Garlaschelli, Maria I. Loffredo. Dipartimento di Fisica, Universit`a di Siena, Via Roma 56, 53100 Siena ITALY. Patterns of Link Reciprocity in Directed Networks

[2] Nicholas Apergis. Department of Industrial Engineering and Management Systems, AmirKabir University of Technology. Determination of Systemically Important Companies with Cross-Shareholding Network Analysis: A Case Study from an Emerging Market. 24 June 2016.

[3] Bob Metcalfe. “Guest Blogger Bob Metcalfe: Metcalfe’s Law Recurses Down the Long Tail of Social Networks”. 18 August 2006. Retrieved 2010–06–20.

[4] Nathan Black. “How to Understand Value In Networks: A New Framework”. Jun 12, 2016

Bryan Plasters is the Founder/Owner and Head of Development for cryptoraves, LLC. He is passionate about leveraging blockchain technology for maximum user experience. Email him at bryan@cryptoraves.space.

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