A conversation with Naval Ravikant and Ryan Shea

Ryan Shea and Naval Ravikant talk about how blockchain and related algorithms and data structures can take human transactions to the next level by removing the involvement of coercive or dishonest 3rd parties. Naval keeps referring to it as “democratization”, but this is actually better than that.

An analogy would be to language: most of the time, nobody dictates to anyone else what words to use, or what words should mean what, or how they should be pronounced (a dictionary might give a guideline, but it can’t enforce them; variants break out all the time). The language evolves by usage, and everybody uses the language however they see fit. You don’t vote on it, so there is no rule of mob.

Similarly, when your transactions are disintermediated, you allocate the resources you have earned where you think they should go, and everyone else does too. The enforcement of transactions is automated, distributed, irrevocable, and low-cost. You don’t need a man with a gun involved in order to organize groups of people.