The Two Generals Problem is a fun thought experiment highlighting the challenges of communicating over an unreliable channel. Your message may or may not get through, and how will you know if it didn't?

The situation is that two armies on either side of a hostile valley are trying to coordinate an attack, and they want to attack simultaneously to be sure to succeed. The trouble is, to coordinate, they have to send brave messengers through the hostile valley to the other camp, and the messengers may or may not be captured along the way.

To coordinate the attack, you have to know that your message got through, which you’d know if you received a confirmation. But how would the general sending the confirmation know that their confirmation got through unless they received a confirmation of the confirmation? And on…

The two generals problem

Networks effects can lead to massive, rapid growth especially if you manage to get a virtuous cycle turning.

Amazon leveraged this model by Jeff Bezos in 2001 for mega growth. Amazon calls it a virtuous cycle (and some call it a virtuous circle). And, more recently, the Uber variation, by David Sacks explains much of Uber’s wild ride. The virtuous cycle is a form of flywheel where once it gets going it keeps on spinning.

When you build a platform that leverages network effects in the right way it can enable growth way beyond what has historically been possible.

Also, see Metcalfe’s Law, the business flywheel, exercise and sleep

Networks sketches