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The a16z Show

Ben Horowitz and Balaji Srinivasan on Netscape and Network States

The a16z Show

a16z

Entrepreneurship, Culture, Disruption, Innovation, Science, Software Eating The World, Business, Technology

4.21.2K Ratings

🗓️ 28 January 2026

⏱️ 43 minutes

🧾️ Download transcript

Summary

Can a country be built from the internet up? Not as a metaphor or an online community, but as a system that replaces institutions we usually think of as fixed, money, law, and governance. In this conversation taken from The Network State Podcast, a16z cofounder Ben Horowitz joins Balaji Srinivasan to explore how internet native institutions are beginning to mirror and challenge traditional state structures. Drawing parallels to China’s early special economic zones, they discuss how constrained experiments like Shenzhen tested new rules without rewriting the entire system, and why similar experimentation is now happening online. The discussion examines crypto, digital identity, and network states as attempts to turn code into coordination and coordination into legitimacy, while grappling with a core tension. Code is deterministic, but societies are not. Ben and Balaji explore where these systems work, where they break, and whether network states are a curiosity or the next phase of governance.

Transcript

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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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