6-3b2e Network effects + Feedback loops + Composability = Exponential growth

“Coding has a nice property of being relatively “closed loop”—you use an LLM to generate or tweak code, which you then validate and push into production. It really took the arrival of a broader set of tools for LLMs to take on this “closed loop” property in domains outside of coding—for instance, the creation of web search capabilities and the arrival of stuff like Model Context Protocol (MCP) connectivity has allowed LLMs to massively expand their “closed loop” utility beyond coding.” – Jack Clark, co-founder of Anthropic (20260110)

Digital with brand (e.g., Google) >>> Physical without brand (e.g., commoditized business)

Related:

• Little connectivity goes long way

  • 3-1d7 ‘Escape velocity’ - Little expressivity goes long way

• 2-2b ‘Critical mass’ & ‘Activation energy’ & ‘Alloying’ & ‘Catalysts’ - Look for, or create, lollapalooza effects

  • 8-1c5 Look for Lollapalooza, or system equivalent of critical mass, or chemical equivalent of activation energy, alloying, and catalysts

1. 5-1b1b1a2 Network effect means compounding

   • 5-1b1b1a3 Network effects (digital) ＞ Supply and demand (physical)
   • 5-1b1b1a1 Things can become easier the more complexity you have (Network effects = Power-law)

2. 2-1a3.1 ‘Feedback loops’ - Iterate. The more and quicker the better.MentalModelsSystemsdevelop

   • 8-1c4 ‘Killer application’ is knowledge-technology-universality that begets reflexivity between app-platform-people by pushing people over the threshold

3. 6-3b2d Composability is software’s version of compounding interest-effect, because composability saving keystrokes implies compounding

   • 6-3b2c Composability with ownership means you can permeate across other possibilities
     • 6-3b2f Composability implies compounding