One of the key choices Founders of network businesses must make is how much to tie user profiles to real identity. More broadly called “nodes,” profiles on a network can lie anywhere on a spectrum from purposefully anonymous (e.g. Monero, ZCash, Whisper, Yik Yak) to using real-names (e.g. Facebook, LinkedIn). The NFX team has observed a very strong correlation between tying profiles to real identity and a higher probability that a network endures and becomes a valuable business — a correlation that usually goes unobserved.
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