Ben Horowitz and Balaji Srinivasan on Netscape and Network States
The a16z Show
a16z
4.2 • 1.2K Ratings
🗓️ 28 January 2026
⏱️ 43 minutes
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| 0:00.0 | Countries are now seeing kind of tech policy as a way to really compete, but it tends to be the countries that want to grow. |
| 0:10.0 | A huge strength of the U.S. has been rule of law and the amount of case law and like the predictability of the law. |
| 0:18.0 | But that kind of presumed that you didn't have people who were above the law who were judges and, you know, prosecutors and these kinds of things. |
| 0:28.3 | People who want the network state in their territory are probably the exact countries that are interested in kind of pushing forward into the future. |
| 0:37.6 | What the state cares about is power. |
| 0:40.6 | And as tech kind of rose in power to the level of the state, then they got very, very |
| 0:48.3 | interested. |
| 0:49.8 | Can you build a new kind of country from the internet up? |
| 0:52.9 | Not a metaphor, not a community, but something that actually replaces institutions we usually think of as fixed. |
| 0:58.8 | Money, law, governance. |
| 1:01.0 | A few decades ago, China experimented with this idea physically, carving out special economic zones to test new rules without rewriting the entire system. |
| 1:09.5 | Shinsen was once a fishing village. |
| 1:11.3 | Today, it's a global tech hub. |
| 1:13.4 | Now the experiment has moved online. |
| 1:15.7 | Crypto, digital identity, internet native communities, |
| 1:18.9 | and what some call network states are trying to turn code into coordination |
| 1:22.4 | and coordination into legitimacy. |
| 1:24.9 | But there's a real tension here. |
| 1:27.0 | Code is deterministic. |
| 1:28.3 | Societies aren't. |
| 1:29.5 | So the question isn't whether these systems are clever. |
| 1:31.9 | It's whether they can actually scale and what they replace if they do. |
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