We study the evolution of social networks that contain both friendly and unfriendly pairwise links between individual nodes. The network is endowed with dynamics in which the sense of a link in an imbalanced triad-a triangular loop with one or three unfriendly links-is reversed to make the triad balanced. With this dynamics, an infinite network undergoes a dynamic phase transition from a steady state to paradise-all links are friendly-as the propensity p for friendly links in an update event passes through 1/2. A finite network always falls into a socially balanced absorbing state where no imbalanced triads remain. If the additional constraint that the number of imbalanced triads in the network not increase in an update is imposed, then the network quickly reaches a balanced final state.
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