Understanding Moats, Network Effects and Marketplaces

A moat is a seemingly unsurmountable competitive advantage. e.g., a business with the cash to scale or reinforce itself to get past the Innovators Dilemma with a flywheel effect. In short, a better investor than any competitor, masterful at execution, operation and therefore having a high likely of sustainability.

Source: Are economic moats more durable than competitive advantages?

A business has network effects when its users gain more value as the number of users in the ecosystem increases. Typically, the CAC, COGs, and WACC improve exponentially as the business scales.

Source: What type of Network effects, are the most powerful?