Vitalik Buterin has weighed in on Balajis’ Network States concept. I like that Vitalik shares why he thinks Balajis is taking this stance. (I’m making an assumption that given his role in the crypto space, Vitalik knows Balajis well enough that he’s not mind reading).
Vitalik thinks that:
To show that network states are the only way to protect freedom and capitalism, one must show why the US cannot. If the US, or the “democratic liberal order”, is just fine, then there is no need for alternatives; we should just double down on global coordination and rule of law. But if the US is in an irreversible decline, and its rivals are ascending, then things look quite different.
But why cryptocurrency? Certainly blockchains do have specific appeals, which Vitalik names. But he adds another component:
Cryptocurrency in 2022 is a key standard-bearer for internationalist liberal values that are difficult to find in any other social force that still stands strong today
And that all the characteristics of blockchains makes them:
an ideal spiritual companion for the network state vision that Balaji wants to see.
Would network states be possible without blockchains? Are they just a strong spiritual underpinning, particularly for someone who wants to build from scratch?
Basement Whatever 