The following is my formatting of Naval Ravikant’s June 21, 2017 tweetstorm.
Blockchains will replace networks with markets.
Humans are the networked species. The first species to network across genetic boundaries and thus seize the world. Networks allow us to cooperate when we would otherwise go it alone. And networks allocate the fruits of our cooperation. Overlapping networks create and organize our society. Physical, digital, and mental roads connecting us all. Money is a network. Religion is a network. A corporation is a network. Roads are a network. Electricity is a network…
Networks must be organized according to rules. They require Rulers to enforce these rules. Against cheaters.
Networks have “network effects.” Adding a new participant increases the value of the network for all existing participants. Network effects thus create a winner-take-all dynamic. The leading network tends towards becoming the only network. And the Rulers of these networks become the most powerful people in society.