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Balaji Srinivasan: The Network State

Apr 5, 2022 2h 55m 26 insights
Balaji Srinivasan makes a return appearance to The Knowledge Project, this time to go in-depth on Web3, Crypto, and the state of the world today. Srinivasan offers his unfiltered thoughts on the advantages and disadvantages of established democracies, the Russia-Ukraine situation, housing as an investment, education, legacy wealth, and which country he would bet on to dominate the future. Srinivasan is the former CTO of Coinbase and General Partner at Andreessen Horowitz, and is an early investor in many successful tech companies and crypto protocols. He is also the author of the book The Network State: How To Start a New Country. -- Want even more? Members get early access, hand-edited transcripts, member-only episodes, and so much more. Learn more here: https://fs.blog/membership/ Every Sunday our Brain Food newsletter shares timeless insights and ideas that you can use at work and home. Add it to your inbox: https://fs.blog/newsletter/ Follow Shane on Twitter at: https://twitter.com/ShaneAParrish
Actionable Insights

1. Evaluate Science by Replication

Evaluate scientific claims based on independent replication, not prestigious citations or insistent repetition, to focus on the substance of science over its form.

2. Prioritize Persuasion Over Force

When in authority, prioritize persuasion and evidence presentation over force, as force should be a last resort and can signal insecurity.

3. Challenge Outdated Regulations

Question the application of old regulations to new technologies, recognizing that fundamental technological shifts often render old rules irrelevant.

4. Understand Information Supply Chain

Critically evaluate the ‘fiat information supply chain’ (academia, media, government) to understand how societal decisions are made and where information originates.

5. Cultivate Independent Thinking

Actively support and reward independent thinking, especially in unexpected problem situations, as it is crucial for effective solutions despite often being penalized.

6. Beware of Proxy Targets

Be vigilant against Goodhart’s Law, where a measure becomes a target, leading to gaming the system and losing sight of the original objective.

7. Analyze Ascending/Descending Dynamics

Frame societal and global analysis dynamically, focusing on ‘ascending’ and ‘descending’ classes or worlds (rates of growth) rather than static categories.

8. Leverage Web3 Decentralization

Utilize Web3’s principles of pseudonymity, decentralization, and censorship resistance to build resilient systems and communities outside central control.

9. Build Crypto Resume

Create a verifiable, on-chain ‘crypto resume’ by accumulating crypto credentials and micro-endorsements for every skill and accomplishment, making your portfolio portable and transparent.

10. Use Skill Market Cap

Identify high-value skills by observing ‘skill market cap’ (on-chain data showing compensation for specific crypto credentials) to guide your continuous learning.

11. Treat Learning as Maintenance

View learning as an ongoing ‘software maintenance’ process for your brain, requiring continuous updates and refreshing, rather than a one-time installation.

12. Assess Talent by Portfolio

Evaluate talent primarily by examining a person’s ‘portfolio’ of materialized results, complemented by references for persistence and public social media for character.

13. Prioritize Capital Allocation

Ensure effective capital allocation, as even abundant resources will be depleted by poor allocation, leading to eventual decline for individuals or organizations.

14. Avoid Nepotism for Vitality

Actively avoid nepotism in your life and organizations, as it can lead to ‘civilizational diabetes’ by corrupting individuals and hindering meritocracy.

15. Demand Data Chain of Custody

Advocate for and utilize a ‘chain of custody’ for data, from instrument recording to final conclusions, to ensure transparency and trustworthiness in information.

16. Utilize Personal Genomics

Advocate for and use personal genomics and explainable risk scores to make informed, individualized health decisions, rather than relying on one-size-fits-all mandates.

17. Use Immunity Tests

Employ fast immunity tests to empirically assess your protective immunity and determine if you truly need a booster shot, making data-driven health decisions.

18. Shift Status to Digital

Redirect status-seeking behaviors to the digital realm (e.g., NFTs, online achievements) as technology commoditizes the physical world, making physical possessions less indicative of status.

19. Invest in Robotic Construction

Explore and invest in technologies like robotic construction to ‘hyper deflate’ construction costs and reduce dependence on physical location, lowering housing prices.

20. Foster Building Culture

Cultivate practical skills and experience in building things in the physical world, from small to large scale, as this foundational ability is crucial for effective project execution.

21. Respect Rivals Realistically

When analyzing competitors or geopolitical rivals, acknowledge their tangible accomplishments and strengths, even while criticizing their flaws, to form a realistic competitive strategy.

22. Seek Mutual Benefit

Strive for relationships or agreements where all parties feel they are getting a ‘screaming deal,’ as this mutual benefit is the basis for sustained cooperation and stability.

23. Leverage Global Diaspora

Utilize a global diaspora or network of talent that is willing and able to migrate and contribute across various fields (tech, media, finance) to gain a competitive advantage.

24. Explore Crypto Creator Roles

Investigate opportunities in authoring content for VR/metaverse and becoming a ‘crypto creator’ to leverage new media environments and monetization models.

25. Fill Legacy Media Niches

Identify and capitalize on niches abandoned by legacy media outlets that have become undifferentiated, as these present opportunities for new, specialized content creators.

26. Read Evergreen, Compressed Information

Prioritize learning evergreen, highly compressed, and valuable information (like mathematics) over rapidly obsolete, low-value information for long-term intellectual growth.