Vitalik Buterin (Ethereum Co-founder) – Network States (Jun 2023)

Chapters

Abstract

Vitalik Buterin’s Vision of Crypto Cities and the Future of Community Living

Abstract

Vitalik Buterin’s groundbreaking exploration of blockchain technology envisions a future where communities are shaped by shared values and technological innovation. Zusula, his experiment combining blockchain prowess, particularly zero-knowledge proofs, with intentional communities, tackles immigration restrictions, promotes common values, and healthy lifestyles. Amidst challenges like political polarization and scalability, Buterin’s measured approach to longevity emphasizes flexibility and adaptability, critical for this endeavor’s success. The broader implications of such initiatives on social dynamics, technology, and real estate are examined, highlighting the transformative potential of network states in reshaping societal norms and living arrangements.

Introduction: A New Frontier in Community Living

Vitalik Buterin, a luminary in the blockchain world, spearheads an innovative approach to community living through his Zusula experiment. This initiative is rooted in blockchain technology, particularly zero-knowledge proofs, with the aim of creating intentional communities that resonate with shared values and technological innovation. Buterin’s vision transcends conventional living arrangements, proposing a blend of health-conscious practices, cultural aspects, and technological advancements to foster communities that are both cohesive and adaptable.

Zusula’s Genesis:

Buterin initiated Zusula in early 2021, leveraging blockchain technology to empower local governments and address specific needs at a manageable scale. Recognizing the limitations of blockchains alone, Buterin underscores the significance of incorporating zero-knowledge proofs, which provide auditability, open ledgers, and privacy preservation.

Motivations for Zusula:

Immigration challenges faced by many individuals, particularly in the crypto space, prompted the exploration of alternative locations with welcoming immigration policies. Additionally, the desire to create intentional communities focused on specific values, such as health, lifestyle, and technological innovation, drove the concept of Zusula. The volatility of the US regulatory landscape further motivated the pursuit of Zusula, given the global nature of the crypto space and the need for a more inclusive approach.

The Zusula Experiment: A Practical Testbed

Zusula serves as a practical testbed for Buterin to test ideas related to intentional communities. This manageable-scale project aims to provide practical insights into forming communities centered around shared values like healthy lifestyles and technological innovation. The experiment faces challenges, including political polarization and scalability, but seeks to demonstrate the practical benefits of such communities.

Goals of Zusula:

Zusula aims to conduct real-world experiments that test various concepts and ideas related to network states, coordination, and free cities. The focus is on manageable experiments that can yield meaningful results within a four-month timeframe. The goal is not to fit neatly into any specific category or narrative, but rather to push the boundaries and gain practical insights into the potential of intentional communities.

Emphasizing Flexibility and Adaptability

Buterin’s approach to longevity and community organization emphasizes flexibility. He advocates for a balance between structured planning and adaptability, allowing for spontaneity and organic growth within communities. This approach is evident in the unique structure of ZooZooloo, an event that lasted two months and fostered a dynamic and engaging atmosphere through spontaneous order and participant-driven activities.

Overall Approach:

The ZooZooloo experiment aimed to strike a balance between health optimization and cultural inclusivity, avoiding extreme measures and promoting a more moderate approach. This approach received positive feedback and was seen as a step towards practical longevity for regular individuals.

Flexibility and Planning:

Avoiding extensive pre-planning for events like ZooZooloo is acceptable and advantageous. A two-month event like ZooZooloo significantly differs from a three-day to a week-long conference as it becomes a part of participants’ lives, requiring a different mindset and preparation approach.

Adaptability and Learnings:

Unanticipated problems and challenges often arise during events, making adaptability crucial. Unexpected opportunities for learning and growth can emerge from these challenges, leading to valuable experiences. ZooZooloo’s emphasis on community and collaboration fostered a positive environment for learning and innovation.

The Role of Formalized Social Systems

As communities grow, the need for formalized social systems becomes evident. Buterin’s experiment explores the use of zero-knowledge proofs in creating innovative solutions for governance and decision-making. These technologies, including ZooPass and ZooPoll, aim to ensure fairness and privacy, especially in sensitive applications like voting.

Cultural vs. Formal Mechanisms for Productivity:

Network states require a blend of cultural and formal mechanisms to foster productivity among residents. Culturally, it’s crucial to create an environment where residents feel empowered to contribute and shape their own experiences. Providing logistical public goods and reducing barriers to participation are key to encouraging residents’ involvement. Positive incentives aren’t always necessary; removing obstacles and reminding residents of their agency can be effective.

Spontaneous Order and Adaptability:

Vitalik Buterin was surprised by the ease of creating environments where most enjoyable activities arise from the participants themselves. Organizers need only provide infrastructure and permissionless processes for residents to utilize. Residents’ willingness to embrace spontaneity led to the creation of events and experiences that were both meaningful and enjoyable.

Practical Considerations for Network States:

Planning in advance is less crucial in network states than in traditional events. The ability to adapt quickly and resolve issues within a short timeframe is essential. This approach is more effective than the “ready aim fire” approach often used in conferences. Network states can benefit from the ability to fix issues in real time, allowing for a more agile and responsive approach.

The Challenge of Community Selection and Diversity

Selecting members for diverse communities is a complex task. Buterin critiques simplistic notions of diversity, advocating for strategic diversity that focuses on specific dimensions and brings together diverse communities intentionally. He emphasizes the importance of multi-layer structures and empowering knowledgeable individuals to invite new members, ensuring community cohesion and effective collaboration.

Practical Considerations:

Zusula sought to bring together individuals from the Ethereum community and beyond to create an intersection of ideas and experiences. The experiment aimed to address practical concerns such as immigration, healthy living, and dietary choices, which are often overlooked in theoretical discussions. Zusula implemented initiatives like the “set and a breakfast” program, which provided healthy and affordable meals to participants, demonstrating the commitment to holistic well-being.

Addressing Criticisms:

Buterin acknowledged potential criticisms of organizing around specific values, such as keto diets, which could lead to misalignment on other important issues. He recognized the need to balance shared values with the diversity of views and beliefs within the community.

Cultural Inclusivity:

The experiment’s cultural inclusivity attracted a diverse group of participants, fostering a sense of community and belonging. Participants appreciated the focus on health and well-being as part of a larger cultural experience, rather than a rigid set of rules.

Personal Growth and Transformation:

ZooZooloo provided a space for personal growth and transformation, with many participants reporting positive changes in their lifestyle and outlook. Participants valued the opportunity to connect with others who shared similar interests and goals, creating a supportive and inspiring environment.

Implications for Technology, Real Estate, and Society

Buterin’s vision has significant implications for various sectors. In technology, the experiment highlights the challenges and opportunities in physical biotech compared to digital tech. In real estate, network states and digital nomading could influence market dynamics, potentially lowering prices in inflated regions. For society, understanding the concept of network states is crucial for investors and individuals, as it presents new possibilities for community living and societal organization.

Vitalik Buterin and Cathy Tie Discuss the Practicalities of Network States:

Network states are a promising approach to reimagine societal organization, enabling individuals to form communities based on shared values and interests. Network states could address issues such as immigration restrictions and economic inequality, fostering greater social and economic inclusivity. The potential for network states to enhance innovation and collaboration is significant, as they facilitate the exchange of ideas and expertise across borders.

Digital Social Technologies and Formalized Social Systems:

Social media allows us to keep track of a larger number of people at a weaker level. Once a society grows beyond Dunbar’s number, formal mechanisms like money and voting become necessary to maintain order. Experimentation is vital in determining effective formalized social systems. Zero-knowledge technology was successfully implemented to create a privacy-preserving resident verification system called ZooPass. ZooPoll, a zero-knowledge proof-based polling system, allowed Zuzulu residents to participate in polls while preserving their privacy.

Selection, Diversity, and the ZooPass Experiment:

Selecting the right people for a community is challenging, especially as it scales. Initially, a small group of insiders may make selections based on intuitive knowledge and deep understanding of various communities. This process can appear unfair and unsustainable in the long term, requiring more formal and neutral procedures. A naive approach to diversity aims for every organization to represent the entire society, leading to zero diversity between organizations. A more strategic approach involves intentionally selecting diverse communities that care about specific dimensions or values. This approach allows for diversity within and between communities, enabling different experiments and connections.

Vitalik Buterin’s Insights on Co-Living and Crypto Communities:

Co-living spaces often emphasize coolness, fun, and empowerment but lack a strong unifying glue. Azusa, Buterin’s co-living project, focuses on privacy, personal freedom, health, biology, and governance as its core values. This approach enables a stronger sense of community rooted in shared interests and goals. Creating successful co-living communities is a complex challenge that requires multiple rounds of experimentation. Iterative learning and experimentation are crucial in refining and optimizing co-living communities.

Logistics Challenges and Opportunities for Physical Bio-technologies in Network States

Network States and Physical Biotechnologies:

– Shipping biomaterials across borders can be seen as a greater threat compared to digital technologies, leading to more challenges for physical biotechnology companies.

– Digital nomads in the blockchain community have more freedom to work remotely and collaborate globally due to fewer physical constraints.

– Building physical biotechnologies requires offline technologies and materials, which can be difficult to transport and obtain in certain jurisdictions.

Advantages of Organizing in Larger Groups:

– Larger groups have more opportunities to negotiate with governments and find solutions that allow them to operate more freely.

– Specialization within a larger group enables certain members to focus on logistics and legal pathways, solving problems that smaller teams may not be aware of.

– Researching jurisdictions friendly to certain activities can provide options for operating more easily.

Challenges and Opportunities for Regular Tech Founders:

– It is uncertain whether investors and remote work advocates would prefer companies to be built in network states.

– Network states and similar entities may have unique investment considerations and approaches that differ from traditional capital and network state playbooks.

– Understanding how investors can interact with companies in network states and non-traditional clusters is a topic for exploration.

Investment Opportunities and Real Estate Implications

Investment Opportunities:

– Create partnerships to invest in projects within the community that demonstrate investment potential.

– Collectively bargain to establish a revenue-sharing mechanism where a portion goes to investors and a portion goes to the community to support its members and public goods.

Real Estate Implications:

– Network states could potentially lead to a decrease in real estate prices in areas with currently inflated prices due to bad reasons.

– Regions with natural beauty, good logistical properties, and welcoming local communities may experience an increase in real estate value.

Cultural and Philosophical Insights and Societal Impact

Cultural and Philosophical Insights:

– Network states have evolving concepts and philosophies that are still being defined.

– The idea behind network states involves collective ownership, digital nomadism, and the creation of shared public goods.

– Governance and culture within network states are decentralized and community-driven.

Societal Impact:

– Network states have the potential to impact society beyond their digital borders, affecting real-world factors such as real estate and local economies.

– Understanding the implications of network states is crucial for people outside of the crypto community to grasp the broader societal changes they may bring.

Notes by: Rogue_Atom