Author of the Network State, Balaji Srinivasan, argues that the future of property and ownership will run on cryptography, specifically, blockchain technology. His vision extends beyond crypto assets to encompass nearly all valuable assets in society, from money and stocks to cars and real estate. Let’s break it down.
The Balaji thesis: from digital gold to onchain everything
Balaji starts by pointing to the obvious: Bitcoin and similar assets are already “digital gold,” securing trillions of dollars onchain. Wherever there is an internet connection, Bitcoin’s blockchain records exactly who owns what, in a consensus that transcends politics and geography. As Balaji explains:
“No matter what political faction you’re in, everyone agrees on the raw fact of who owns what amount of BTC.”
The concept here is simple: blockchains provide unified, politically neutral property ledgers.
Stablecoins and the onchain asset explosion
He then extends the logic. Stablecoins have achieved legal recognition in several countries, and if onchain currency is legal, other assets naturally follow suit.
“There’s a legal path for onchain stocks, onchain bonds, and every other type of financial asset,” says Balaji.
The implication: expect equities, bonds, and even physical commodities to become digitally represented and traded peer-to-peer on blockchains.
Physical property becomes cryptographic
But cryptography doesn’t stop at financial assets. Balaji points to the rise of smart locks and digital access control as a sign that even physical property like houses, cars, and planes will be governed by cryptography. He notes:
“Any door can be secured in this way. The door to a plane, to a train, to a boat, to a building. Any door can be secured onchain.”
Imagine a world where your car isn’t started by a physical key, but by a digital signature representing a cryptographic proof of ownership.
Securing all capital
This digital signature-based security can be extended to nearly all capital assets:
“Any piece of capital equipment, from cranes to drones can be similarly secured.”
As society progresses towards automation with humanoid robots, self-driving cars, and delivery drones, the argument is that all these assets will become part of the onchain cryptographic order.
Balaji acknowledges some exceptions: personal consumables such as food or clothing won’t be secured onchain. But he suggests that these make up a negligible part of global value.
“For everything else, for 99%+ of what’s valuable, for every financial asset and every capital asset, we will secure it onchain.”
Why cryptography? Security and trust
The rationale for this radical shift is security. Traditional computer systems, even those run by the Pentagon, are routinely hacked. In contrast, “scaled public blockchains do not” get hacked in the same catastrophic ways.
Therefore, putting property registries, access controls, and asset ownership onchain becomes the only way to guarantee robust, global, censorship-resistant ownership.
Finally, Balaji envisions a “code-based order on the internet, a new kind of global economic union” powered by blockchain technology. By putting the “control plane for the drones… onchain,” anyone with internet access joins a global system of secure ownership, contractual equality, and programmable economics.
Balaji’s core message is succinct:
“All property becomes cryptography.”
While the world isn’t all the way there yet, the legal and technological groundwork is being laid today, with Bitcoin and blockchains leading the way to a fully cryptographic economy.
